Avoid Costly Surprises: How Owners and Tenants Can Plan Energy Upgrades Together

Written By: Christina Armor

Energy Efficiency investments aren’t just about improving buildings - they can also strengthen relationships between owners and tenants. Aging equipment, tight budgets, and unclear responsibilities can often stall projects before they even begin. When owners and tenants collaborate they can reduce energy bills, maintain the integrity of the building structure, and help our local communities thrive. 

Running a small business comes with constant demands, and sometimes it can feel like solving problems alone. Most business owners are experts in their craft, not the equipment that keeps their space functional and comfortable. When something goes wrong with the building or HVAC system, those extra burdens can feel daunting and sometimes urgently needed.  

Whether renting or owning a building, old equipment is common, especially in small or rural communities where it’s not unusual to find heating and cooling systems that are original to the building. Over time, that equipment becomes less efficient, more expensive to run, and more likely to fail at the worst possible moment.   

For tenants, the situation can feel even more complicated. Many small businesses operate on short-term leases and may inherit building issues they didn’t create, such as outdated equipment or poor insulation. Many of these barriers are easier to solve than they seem. With the right conversations and a little planning, owners and tenants can often find solutions that benefit everyone. 

Here are four ways to move forward together: 

1. Plan Before Equipment Fails 

Emergency replacements are expensive and often lead to rushed decisions. Planning ahead gives you time to understand the condition of existing equipment, gather quotes, and identify available cash assistance. A conversation about setting aside a small budget for unexpected equipment repairs can help prevent costly downtime later. 

2. Clarify Who Handles What 

Start by clarifying responsibilities early—things like maintenance, thermostat control, repairs, and potential upgrades. Even informal agreements can prevent confusion and delayed fixes when something breaks. 

3. Start with the Low-Cost Fixes 

Energy improvements don’t always require replacing major equipment. Ensuring ducts are sealed, managing thermostat settings, and scheduling on-going maintenance are some of the most effective ways to increase comfort and reduce energy use without large upfront costs. 

4. Use Financial Support to Unlock Projects 

Energy efficiency support like rebates, tax credits, or incentives from your utility, government, or solar provider can help bridge the gap between tenants who want improvements and owners who are concerned about costs. In many cases, these incentives reduce upgrade costs enough to make projects easier to justify.  

For more information on the types of funding available, check out Rob Hall’s previous Waypoint blog post. Sometimes, just knowing financial support is available is enough to restart a stalled conversation.  

Not sure where to start?  

This checklist can help owners and tenants begin planning for future equipment needs and avoid costly surprises. 

• Discuss who is responsible for maintenance, repairs, and replacements. 

• Ask how old the HVAC equipment is and when it was last serviced. 

• Agree on who manages thermostat settings and service calls. 

• Schedule preventative HVAC maintenance at least once per year. 

• Ask if simple improvements like duct sealing or control adjustments could improve efficiency. 

• Identify one trusted contractor you could call if equipment fails. 

• Set aside a small budget for unexpected equipment repairs. 

• Ask what incentives may be available before starting a project. 

• Compare upgrade options with incentives included in the cost. 

For more information on how to get started, email us at info@waypoint-energy.com. 

Resources