Renting out your property

Better ratings mean better returns

Improving your investment property’s Home Energy Rating isn’t just good for tenants – it’s good for your investment returns too. Energy efficient homes are more comfortable to live in, cost less to run and may make the property more appealing to renters. For landlords, that could mean shorter vacancy periods and a stronger asset value over time.

A Home Energy Rating assessment for an existing home provides a clear view of where your property performs well and where it can improve. Upgrades such as adding insulation, efficient hot water and heating and cooling systems, as well as solar panels can all lift your rating and make the property more appealing.

5 ways landlords can lift their home’s rating

1. Add or upgrade insulation – Add or improve ceiling, wall, and floor insulation to reduce heat loss in winter and heat gain in summer.
2. Seal gaps and draughts – Simple, low-cost sealing improves comfort and reduces energy demand for heating and cooling.
3. Install an efficient hot water system – Heat pumps or solar systems can cut energy use and appeal to tenants.
4. Switch to LED lighting – LEDs use up to 80% less energy and last significantly longer than traditional bulbs.
5. Add solar (PV) – Generating on-site renewable energy can raise your Home Energy Rating (often above 100) and offset tenants’ running costs.

Home Energy Rating assessments can also unlock financial support to help you make energy efficiency upgrades and improvements to your property. They can be used to access rebates and other incentives offered by government programs. See Households Government Funding.

Note: If you’re considering upgrades in a home with owners’ corporation rules, there may be additional requirements to consider before undertaking the upgrades. Check with your owners’ corporation and/or strata manager.