Renters are feeling the chill, with 56% saying they had no control over the energy efficiency of their homes.
The PropTrack Origin Renter Reality Report, released on Wednesday, has highlighted the challenges renters faced when trying to reduce their energy costs while keeping their homes at a comfortable temperature.
The report analysed the 4,800 responses to realestate.com.au’s January 2025 Residential Audience Pulse Survey to gauge renters’ ability to reduce their power bills.
It found 33% of renters across the country did not have any energy efficient features in their homes, while a further 22% did not know if their homes had these features.
The findings underscore the powerlessness many renters feel when home upgrades are needed. With a tight market and already expensive rents, many are wary of asking for modifications for fear of rent-hikes or eviction.
Efficient lighting was the most common feature renters said they had in their homes (21%) followed by solar power (15%) and energy efficient appliances (13%).
Just 8% of respondents said they had better insulation, 7% had double-glazed windows and only 5% had draught-proofing.
These are concerning figures, given these three features are vital for well-functioning, cost-effective heating and cooling.
What’s more, an alarming 38% of renters surveyed said they would sacrifice their own comfort to save on energy costs.
With rental affordability at its worst level in at least 18 years, it’s no wonder many renters feel the need to cut costs, however sacrificing their comfort – and in some cases, potential health and safety – should not be necessary.
The report revealed 30% of renters felt there were not enough government policies, grants and incentives to make Australian homes energy efficient. This is compared with almost half of buyers surveyed (47%) highlighting that owners and landlords were more likely to rely on government schemes for property upgrades.
Victoria has introduced minimum standards to be introduced in 2027, which will enforce ceiling insulation, draught proofing and efficient heating and cooling in rental properties. Landlords will be responsible for these upgrades, though some rebates will be available.
Most renters surveyed (59%) said landlords were responsible for improving a home’s energy efficiency, however 45% said they planned to take on some of the cost themselves – though the largest portion of those said they would spend $5000 or less.
The report highlights the lack of official minimum standards across the country, along with the fact that even when homes do have high efficiency, it is often not specified in the rental listing.
It’s a missed opportunity, given a third of renters said they would pay more for better energy features.
This statistic suggests landlords who make upgrades could potentially charge more in rent, along with increasing the value of their property.
Though the report uncovered some of the major problems with energy efficiency in rental properties, it also revealed opportunities for policymakers and landlords to improve living conditions for Australia’s growing number of renters.
It also stressed the need for better education for renters, many of whom were unaware of simple and cost-effective ways to improve the energy efficiency of their home, without necessarily needing the landlord’s approval.
It suggested habit changes including using cold water in the washing machine, making the most of natural ventilation, switching appliances off at the wall, and opting for the air-fryer over the oven.
It also suggested using door snakes and weather strips to stop draughts, installing thick curtains to improve heat retention and installing window insulation using a simple and affordable kit.
Though these measure could help renters save in the short term, the report clearly shows the need for minimum energy efficiency standards in all states and territories to ensure homes suit the needs of all Australians.
