- Switch to LED Lighting: Uses up to 90% less energy and lasts 25 times longer than traditional bulbs. Saves about $225 annually.
- Install Smart Thermostats: Automatically adjust temperatures based on occupancy. Cuts heating/cooling costs by around 8%.
- Upgrade to Energy Star Appliances: These use significantly less energy – refrigerators, for example, consume up to 15% less.
- Improve Insulation and Air Sealing: Prevents up to 60% of energy waste. Focus on attics, walls, and sealing air leaks.
- Guide Guests to Save Energy: Provide clear, simple tips (e.g., turn off lights, adjust thermostats) and encourage eco-friendly habits.
Why it matters: These upgrades save money, attract eco-conscious travelers, and can increase property value by 2–6%. Plus, rebates and incentives can help cover costs.
Keep reading for practical tips and detailed guidance on implementing these changes.
Smart Thermostats for Vacation Rentals: Easy Guest Control and Energy Savings
Switch to LED Lighting
Switching to LED lighting is a simple way to cut energy costs in your short-term rental. LEDs use up to 90% less energy and last up to 25 times longer than traditional incandescent bulbs. This means lower electricity bills and fewer bulb replacements – savings you’ll notice right away.
On average, households save about $225 annually by using LED lighting. Since lighting typically accounts for about 15% of a property’s electricity usage, this upgrade can significantly reduce your operating expenses. Plus, LEDs produce less heat than incandescent bulbs, which can help lower cooling costs during warmer months.
LED Lighting Benefits
LEDs offer more than just monthly savings – they’re a long-term investment. With lifespans ranging from 25,000 to 100,000 hours, they far outlast incandescent bulbs, which typically burn out after about 1,000 hours. In practical terms, this means LEDs can last 25 years or more with regular use.
"The cost savings achieved by switching from regular light bulbs to LED means the lights pay for themselves in a very short time" – HLWT.
Smart LED options take efficiency even further. These bulbs use 70–90% less energy than traditional incandescent bulbs and last 15 times longer. Features like dimming and automatic scheduling allow you to optimize energy use based on when and how guests use the space.
LED Installation Tips
To get the most out of LED lighting, focus on high-traffic areas like kitchens, living rooms, and bathrooms.
- Kitchens: Use bright task lighting to help guests prepare meals safely and comfortably.
- Living rooms: Install dimmable smart lights so guests can adjust the ambiance for relaxing or entertaining.
- Bedrooms: Opt for warmer white LED bulbs to create a cozy, restful atmosphere. Avoid cool white or daylight bulbs that can interfere with sleep.
Adding dimmer switches is another easy upgrade. These give guests control over lighting intensity, allowing them to switch between bright settings for activities like reading or cooking and softer lighting for a relaxing evening.
For outdoor spaces and hallways, consider motion-sensor lights. These automatically turn on when someone approaches and switch off when the area is empty, saving energy while improving convenience. Timer-based lights can also create the appearance of activity when your property is unoccupied, adding a layer of security.
When choosing fixtures, prioritize ones that are durable and easy to install. Select lighting that complements your property’s style and can be easily replicated across multiple properties if you expand your rental portfolio. Use cord concealers to keep wiring neat and organized.
If your property includes smart home features, make sure the LED lighting is compatible with your existing Wi-Fi network and smart home hubs. Providing guests with clear instructions on how to use these smart lights can enhance their experience and highlight your commitment to energy efficiency.
Install Smart Thermostats
Smart thermostats are a game-changer for managing energy in short-term rentals. These devices automatically adjust temperature settings based on whether the property is occupied, reducing energy waste during vacant periods. Unlike traditional thermostats, which stick to fixed settings regardless of use, smart thermostats learn patterns to fine-tune energy consumption while keeping guests comfortable. This upgrade pairs well with other energy-saving strategies mentioned earlier.
The Environmental Protection Agency (EPA) estimates that smart thermostats can cut heating and cooling costs by about 8%. Research also highlights potential savings of up to 243 kWh per month, along with a reduction of roughly 208 pounds of CO₂ emissions per property.
Smart Thermostat Features
When choosing a smart thermostat, focus on features that maximize efficiency without compromising guest satisfaction. Look for models with remote control capabilities, allowing you to adjust settings from anywhere. Many smart thermostats also offer detailed energy usage reports, helping you identify trends and spot areas for further improvement. Some even come equipped with motion sensors to detect when the property is empty, adjusting the temperature automatically to save energy.
For added convenience, consider thermostats with voice command functionality, which guests often appreciate. If your property has multiple rooms or floors, devices with remote sensors can help maintain consistent temperatures throughout. Integration with other smart home systems and syncing with booking schedules ensures the space is at a comfortable temperature upon guest arrival, while still conserving energy when the property is vacant.
Balance Savings and Guest Comfort
Striking the right balance between energy efficiency and guest comfort is essential. Set temperature ranges that guests will find comfortable without wasting energy. For example, many hosts opt for 68–72°F during the winter and 72–76°F in the summer for occupied periods. During times when guests are likely out, you can program the thermostat to adopt more energy-saving settings, returning to a cozier temperature just before check-in.
Make sure to provide clear instructions for operating the thermostat to improve the guest experience and encourage energy-conscious behavior. Adding extra blankets or portable heaters can give guests more control over their comfort without relying entirely on the central HVAC system. Additionally, temperature alerts can help you quickly address any HVAC issues that might disrupt a guest’s stay.
Choose Energy Star Appliances
Choosing Energy Star-certified appliances is a smart way to cut energy costs in your short-term rental. These appliances are designed to use less energy than their non-certified counterparts, delivering noticeable savings. For example, Energy Star-rated refrigerators consume up to 15% less energy compared to standard models. Similarly, energy-efficient air conditioners can slash energy use by around 30% compared to conventional units.
Beyond saving money, these appliances appeal to guests who value sustainable choices. Much like LED lighting and smart thermostats, upgrading to Energy Star appliances is a key step in creating an energy-efficient rental property.
Priority Appliances to Replace
After addressing lighting and temperature control, shift your focus to appliances that use energy continuously. Refrigerators, which run 24/7, are often the biggest culprits when it comes to energy waste, especially older models. Other high-priority upgrades include water heaters, washers, dryers, and dishwashers – essential for guest comfort but often energy-intensive.
When deciding which appliances to replace first, consider their energy usage patterns and the potential savings from upgrading.
North Carolina Energy Rebates
For property owners in North Carolina, upgrading appliances is even more affordable thanks to targeted rebate programs. The Energy Saver North Carolina program, backed by over $208 million in funding, offers generous rebates that can cover up to 100% of project costs for eligible households.
Rebate amounts depend on household income and the type of appliance being upgraded. For example:
- Owners with a household income below 80% of the Area Median Income (AMI) may qualify for rebates covering up to 100% of costs.
- Those with incomes between 80% and 150% of AMI can receive up to 50% coverage.
Here’s a breakdown of maximum rebate amounts by appliance type:
| Appliance Type | Maximum Rebate Amount |
|---|---|
| Electric Heat Pump | $8,000 |
| Electric Heat Pump Water Heater | $1,750 |
| Heat Pump Dryer/Combo Washer/Dryer | $840 |
| Electric Range/Cooktop | $840 |
Renters can also access these rebates with landlord approval, making the program accessible for property managers handling tenant-occupied units. To qualify, all installations must be completed by contractors registered through the Energy Saver NC website.
The program offers two main tracks:
- Home Electrification and Appliance Rebates (HEAR): Provides up to $14,000 per dwelling unit.
- Homeowners Managing Efficiency Savings (HOMES): Offers up to $16,000 for whole-home energy improvements.
Applications can be submitted online, by email, phone, or mail through EnergySaverNC.org.
Currently, the program is available in Cleveland and Halifax counties, with plans to expand statewide. It will run until 2031 or until funds are fully allocated. Notably, heat pumps – up to three times more efficient than traditional HVAC systems – are a standout option under this initiative.
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Improve Insulation and Air Sealing
One of the most effective ways to cut down on energy waste is to ensure your property holds onto conditioned air as efficiently as possible. Poor insulation and air leaks can waste up to 60% of conditioned air. For instance, a poorly insulated roof can account for more than 35% of heat loss, while walls with inadequate insulation may add another 25% to the problem.
Good insulation acts as a barrier to heat flow – keeping your space warm in the winter and cool in the summer. Pairing insulation with proper air sealing takes it a step further by minimizing energy waste and maintaining a steady indoor temperature, which can significantly enhance guest comfort. As Grace Hajduk, Chief of Staff at Safely, puts it:
"Winterizing your vacation rental is about more than just preventing pipes from freezing. It’s about optimizing the guest experience, safeguarding your property, and ensuring the longevity of your systems."
These upgrades not only lower energy bills but also eliminate drafts and cold spots, which can impact guest satisfaction and reviews. Start with insulation improvements, then focus on sealing gaps to maximize energy efficiency.
Insulation Methods
To tackle energy loss, focus on the areas where it happens most – attics, walls, and floors – with attics being the biggest culprit. Different insulation materials come with distinct advantages and costs. Here’s a quick breakdown:
| Insulation Type | Cost per Sq Ft | Key Benefits |
|---|---|---|
| Fiberglass | $0.30 – $1.50 | Budget-friendly and easy to install |
| Cellulose | $0.60 – $4.20 | Eco-conscious and great for filling cracks |
| Spray Foam | $0.50 – $7.00 | Top-notch air sealing and thermal performance |
| Mineral Wool | $1.40 – $4.00 | Fire-resistant with soundproofing benefits |
| Rigid Foam | $0.60 – $2.00 | High thermal efficiency and moisture resistance |
Fiberglass is the most affordable option, making it a popular choice for standard installations, though it may not perform as well as cellulose or spray foam. Spray foam, while pricier, offers superior air sealing and thermal insulation, along with moisture and mold resistance. However, it often requires professional installation, adding to the upfront cost. Icynene spray foam, for example, has been shown to reduce energy bills by 30–50% in just one year, though it does require a ventilation system, which can raise initial expenses.
For an eco-friendly option, cellulose insulation works well in older properties, as it fills cracks effectively. Just make sure it’s installed correctly to avoid moisture problems. Mineral wool provides excellent fire resistance and soundproofing, making it a great choice for improving guest comfort.
Seal Air Leaks
As Eric Gans, a Certified Energy Auditor, explains:
"Air sealing is the hidden hero, and it’s almost always overlooked."
Air leaks occur when outside air sneaks in and conditioned air escapes through cracks and openings. These leaks can be found around electrical outlets, switch plates, door and window frames, baseboards, weather stripping, attic hatches, and even where dryer vents or cables pass through walls.
Start by inspecting your property visually or using simple tests like the soapy water method to pinpoint problem areas. Once identified, seal these gaps with caulk, weatherstripping, or foam sealant to quickly reduce energy loss. For smaller leaks, foam gaskets behind outlet and switch plates can help. Larger gaps around windows, baseboards, or doors may require foam sealant or replacing door thresholds with ones that include pliable sealing gaskets.
The Department of Energy highlights the importance of sealing air leaks, noting that it’s a cost-effective way to cut heating and cooling costs, improve durability, increase comfort, and create a healthier indoor environment. Just remember to assess ventilation needs to ensure your indoor air quality stays balanced while boosting energy efficiency.
Guide Guests to Save Energy
Encouraging guests to save energy doesn’t have to be complicated. Simple, clear instructions can go a long way in promoting energy conservation during their stay. When approached with gentle reminders rather than forceful demands, most guests are more than willing to pitch in and help cut down on energy waste. Combining these small guest actions with energy-efficient upgrades can significantly boost savings.
A straightforward, upfront low-energy policy can also underline your dedication to reducing waste. As SEAI’s Behavioral Economics Unit explains, "Sharing too many energy saving options can, on the other hand, lead to ‘choice overload’, stopping people from taking any action at all. So it’s important to strike a balance".
Guest Energy Guidelines
Just as smart thermostats and energy-efficient appliances help lower utility bills, simple guest habits can make a big difference too. Focus on delivering clear, easy-to-follow energy-saving tips rather than bombarding guests with too much information. VTech Hospitality advises, "Providing this information in a friendly, non-intrusive manner can encourage participation without compromising their experience".
Make the tips engaging and practical. For instance, remind guests to turn off lights when they leave a room, use cold water for laundry, and operate HVAC systems efficiently. For heating and cooling, provide specific instructions like closing windows before turning on the system and switching it off when leaving. This avoids common energy-wasting mistakes, such as running the AC with the windows open.
A great example of guest-friendly communication comes from Huma0, a Level 10 Airbnb Community Member, who includes the following in their house rules: "We try to be an environmentally conscious household, especially given the current energy crisis, so it would be great if you could please remember to turn off lights when you leave the house".
Another effective tip is to highlight the impact of thermostat settings. For example, explain that every degree increase in room temperature can raise heating costs by 10%. Sharing this kind of straightforward information helps guests understand the consequences of their actions without feeling pressured.
Reward Energy Conservation
Once you’ve shared energy-saving guidelines, take it a step further by rewarding guests for their efforts. Recognizing sustainable behaviors shows appreciation and encourages more participation.
You could offer small discounts on future bookings or give public recognition to guests who contribute to your eco-friendly goals. Simple gestures like providing reusable water bottles or custom-branded reusable bags as souvenirs can also inspire guests to embrace sustainability while reducing single-use plastics.
To make the experience even more memorable, include a welcome letter highlighting your property’s eco-friendly features and invite guests to share their sustainable travel stories on social media. Not only does this build pride in their participation, but it may also attract more environmentally conscious travelers.
For tech-savvy guests, consider investing in amenities like electric vehicle charging stations. As Axel Persson from Operto notes, "Some hosts are starting to offer electric vehicle charging as a guest amenity". While it requires an upfront cost, it can appeal to guests who prioritize sustainability.
When you frame energy conservation as a collaborative effort rather than a restriction, guests are usually eager to contribute. Short-term rental owners can also simplify guest communications and energy-saving practices by working with professional co-hosting services like NC Host Pro.
Conclusion: Lower Costs and Better Properties
Cutting down energy costs in your short-term rental not only saves you money but also supports environmental efforts. Simple upgrades like switching to LED lighting, installing smart thermostats, using Energy Star appliances, and improving insulation can significantly lower energy consumption and maintenance expenses. These changes also make your property more appealing to travelers who prioritize eco-friendly options.
Beyond cost savings, energy-efficient upgrades can boost your property’s value and market appeal. Studies reveal that homes with energy-efficient features sell for 2-6% more than similar properties without them. Additionally, energy-efficient rentals often experience fewer payment delays, shorter vacancy periods, and attract renters willing to pay a premium for environmentally friendly features. This means you can charge higher rental rates, reduce vacancies, and keep operational costs in check.
Financial incentives can ease the cost of these upgrades. Many local governments and utility companies offer rebates or tax breaks for energy-efficient installations. On top of that, modern energy-efficient appliances tend to last longer and require fewer repairs compared to older models, further cutting down on maintenance expenses.
As Westrom Group Property Management points out, "Investing in energy efficiency upgrades is a smart move for property managers looking to reduce costs, increase property value, and attract eco-conscious tenants". Pair these technological improvements with guest education and conservation initiatives, and you’ll create a rental that’s both cost-effective and highly appealing. For property owners in the Raleigh-Durham area, teaming up with experienced co-hosting services like NC Host Pro ensures these upgrades deliver maximum financial and operational benefits.
FAQs
What are the cost and environmental benefits of using Energy Star appliances in short-term rentals?
Upgrading to Energy Star appliances in your short-term rental isn’t just a smart move for your wallet – it’s a step toward reducing your environmental impact. These appliances are built to consume up to 15% less energy than standard models. That means you could save around $450 a year on energy bills.
But the benefits don’t stop at cost savings. Energy Star appliances also help cut greenhouse gas emissions, making your property more eco-friendly. Plus, energy-efficient upgrades can make your rental more appealing to environmentally conscious guests, potentially increasing your occupancy rates and boosting revenue. It’s a win-win for both your finances and the planet!
How can I encourage guests to save energy while ensuring their comfort during their stay?
Encouraging guests to save energy while ensuring their comfort doesn’t have to be complicated. A great starting point is to provide a clear, friendly welcome guide or place small signs around your property with simple tips – like turning off lights when leaving a room, unplugging devices that aren’t in use, or running appliances thoughtfully. When these suggestions are easy to understand and non-intrusive, guests are more likely to embrace them.
Another effective approach is incorporating smart thermostats. These devices adjust heating or cooling based on occupancy, keeping the space cozy while avoiding unnecessary energy use. Pair this with LED lighting and energy-efficient appliances, which consume less power without compromising on quality. By combining thoughtful upgrades with gentle reminders, you can create a space that’s both eco-conscious and welcoming for your guests.
What are the best insulation methods to reduce energy costs in short-term rentals?
For short-term rental properties, fiberglass insulation and spray foam insulation stand out as two solid choices for cutting energy costs. Fiberglass is a budget-friendly option that works well in walls, attics, and floors, thanks to its strong thermal resistance. Plus, it’s a practical upgrade – insulating an attic, for instance, often pays off with noticeable returns on investment.
On the other hand, spray foam insulation comes with a higher upfront price tag but delivers exceptional air sealing and energy efficiency. This means you’ll likely see lower utility bills over time. If you’re looking for a greener alternative, cellulose insulation is worth considering. Made from recycled materials, it combines energy efficiency with a more sustainable approach.
Proper insulation doesn’t just trim energy costs; it also creates a more comfortable environment for guests. That added comfort can lead to better reviews and higher occupancy rates – a win-win for any rental owner.