The PropTrack Origin Renter Reality Report, which surveyed over 4,800 respondents, found that 35 per cent of renters would be willing to pay more for a home with smart energy features, highlighting a potential opportunity for landlords.
The report revealed that a lack of control is the primary obstacle for renters, with 56 per cent citing this as the biggest roadblock to adopting energy-efficient features.
Upfront costs were identified as the second most significant barrier at 27 per cent.
REA Group Senior Economist, Anne Flaherty, said the findings demonstrate the challenges faced by renters in the current market.
“Surging costs have created real challenges for Australian renters, and many are now being forced to make compromises around the size, location, and quality of the homes they can afford,” Ms Flaherty said.
The survey uncovered a concerning gap in energy efficiency, with one-third of renters reporting they have no energy-efficient features in their homes, while another 22 per cent are unsure if such features exist in their rental properties.
Most renters believe property owners should take responsibility for improving energy efficiency, with 59 per cent placing this obligation on landlords, creating a significant barrier to widespread adoption.
Despite these challenges, the report found that 45 per cent of Australian renters plan to invest in energy efficiency improvements over the next five years, though the majority will spend $5,000 or less.
Origin Retail Executive General Manager, Jon Briskin, said that there are accessible solutions available to improve energy efficiency in rental properties.
“There are many simple, affordable and temporary solutions to boost energy efficiency in rental properties and deliver energy bill savings,” Mr Briskin said.
The most common energy-efficient features currently found in rental homes are efficient lighting (21 per cent), solar power (15 per cent), and energy-efficient appliances (13 per cent).
The report also examined energy-saving behaviours among renters, finding that approximately half reported turning off lights (53 per cent) and appliances (47 per cent) when not in use. However, nearly a third (32 per cent) admitted they had not made any adaptations to their energy use over the past year.
Mr Briskin called for policy changes to address the issue.
“We also welcome policy updates and improved availability of rebates that encourage landlords to improve energy efficiency in rental properties, including installing solar panels and batteries, ensuring renters share in the benefits and are not left behind in the energy transition,” he said.
Ms Flaherty suggested that even small steps could make a difference in improving energy efficiency in rental properties.
“Despite these barriers, a third of respondents stated they would be willing to pay more for smart energy features, indicating motivations are there, yet stronger policies, incentives, and education are needed to help renting households improve energy efficiency,” she said.
“This could even begin with something as simple as a conversation with a landlord to identify energy-efficient opportunities in the home.”
