Using Green Leases to Collect Tenant Utility Data
If it's your first time collecting tenant utility data, the task may seem daunting. You have a release form, but what about tenant turnover? This is a process you certainly don't want to repeat annually for new tenants.
Instead, consider a green leasing strategy. Also known as energy-aligned leases, high-performance leases, or energy-efficient leases, green leasing formalizes the energy efficiency and green building responsibilities of tenants and property owners. Specific to utility data collection, you could add language into your lease requiring tenants to provide their monthly utility data. You could include clauses that:
- Require tenants to submit monthly utility data
- Allow the company to install sub-meters in tenant areas
- Require tenants to provide the necessary information to set up online accounts with their utility providers
By incorporating language into your lease requiring tenants to provide their monthly utility data, you will be able to easily collect tenant data when experiencing turnover. Never again will you have to make the effort to collect all of your tenants' data at once!
There are several resources to help you develop your green leasing strategy. The Business Council on Climate Change has a Green Tenant Toolkit that provides an overview of the green leasing process. It is tailored towards commercial property owners, but includes links to sample leases, such as PlanNYC's model of energy aligned lease language.
This case study, published by the U.S. Department of Energy, highlights how Brandywine Realty Trust incorporated energy efficiency components into their lease language. Though straying from our main topic of incorporating data collection language a bit, it is a great example of using green leasing in commercial buildings to solve the issue of split incentives. You may find it helpful in finding solutions to your own split incentive issues. For further reading, check out last year's blog post on how green leases can help solve the split incentive issue between tenants and owners.
Want to learn more? We'll be publishing an E-Book on tracking tenant data within the next month. Sign up here and we'll send it to you once we're finished.