“The split incentive changes landlord and tenant behavior in various ways, depending on who pays for utilities,” said Monica Haynes, director of the BBER. “When landlords pay for utilities, properties are typically more energy efficient, but tenants are more likely to overuse. When tenants pay for utilities, they are more conservative with their energy consumption, but properties tend to have fewer energy efficient features. Both scenarios lead to higher levels of wasted energy and highlight the difficulties associated with conserving energy in rental properties.” Read More
A new study by the University of Minnesota Duluth’s Bureau of Business & Economics Research (BBER), “Impacts of the Split Incentive on Privately Owned Rental Housing,” reveals that Duluth landlords and students who lease private rental property in Duluth may often be at odds when it comes to energy savings. The study shows that a “split incentive” exists.