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Utility Management Advisory

What is a “Green Lease”?

Posted on May 25, 2017

 

Have you heard of a “green lease”?  A green lease is just like a regular apartment lease, but it outlines specific terms that residents and landlords must adhere to surrounding the community’s sustainability policies.

Green leases are now included in top multifamily industry trends.  The article below shows green leases within their Top 5 trends!

https://www.bdcnetwork.com/5-intriguing-trends-track-multifamily-housing-game

You may see green leases more frequently in developments built specifically with certain sustainability criteria, such as Zero Net Energy buildings or Passive House buildings.  However, green leases are beneficial for all apartment communities because they allow specific energy and sustainability practices to be outlined and agreed upon by both properties.

Check out this article for an in-depth listing of green lease benefits for both residents and landlords:

https://www.greenbiz.com/blog/2013/05/29/10-reasons-why-green-leases-create-value-tenants-and-landlords

Some items you may consider outlining in your green lease include:

  • Requirements for community recycling
  • Requirements for unit specific energy usage
  • Prohibitions for items in the apartments that may contribute to excessive energy use (mini fridges as an example)
  • Stipulations regarding tenant based improvements for sustainability

Consider updating your lease to a green lease to save money, conserve resources, and ensure the efficient operation of buildings.

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