Landlord–Tenant Dilemma: How Does the Conflict Affect the Design of Building Energy Systems?

To achieve climate goals, the European Union needs to increase building renovation rates. In owner-occupied buildings, energy cost savings provide financial incentives for renovation. However, 30% of all Europeans live in rented property, where conflicting stakeholder interests arise. Landlords are...

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Main Authors: Larissa Kühn, Nico Fuchs, Lars Braun, Laura Maier, Dirk Müller
Format: Article
Language:English
Published: MDPI AG 2024-01-01
Series:Energies
Subjects:
Online Access:https://www.mdpi.com/1996-1073/17/3/686
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author Larissa Kühn
Nico Fuchs
Lars Braun
Laura Maier
Dirk Müller
author_facet Larissa Kühn
Nico Fuchs
Lars Braun
Laura Maier
Dirk Müller
author_sort Larissa Kühn
collection DOAJ
description To achieve climate goals, the European Union needs to increase building renovation rates. In owner-occupied buildings, energy cost savings provide financial incentives for renovation. However, 30% of all Europeans live in rented property, where conflicting stakeholder interests arise. Landlords are responsible for renovation decisions (building envelope and energy system) and the corresponding investments. Tenants face rising rents and only slightly benefit from falling energy costs. The literature calls this conflict the landlord–tenant dilemma. However, publications lack a quantification, leaving gaps in understanding its impact on technology choices and the heat transition. To address this, we incorporate the perspectives of landlords and tenants in a model-based approach for optimized technology choice (mixed-integer linear program). We compare optimal individual technology choices with the total cost optimum (including costs for landlords and tenants) for renovation decisions. Additionally, we examine how changes in the regulatory framework affect the economically driven landlord’s technology choice. Our study reveals that total costs and emissions are up to 60% and 283% higher for landlords deciding for rented houses compared to owner-occupied properties. Current approaches to solve the dilemma partly favor the development of climate-friendly energy systems. However, the renovation of the building envelope and operation costs are mostly disregarded in the decisions of landlords.
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spelling doaj.art-e9115bbd4c184d66bddf6726984e99922024-02-09T15:11:36ZengMDPI AGEnergies1996-10732024-01-0117368610.3390/en17030686Landlord–Tenant Dilemma: How Does the Conflict Affect the Design of Building Energy Systems?Larissa Kühn0Nico Fuchs1Lars Braun2Laura Maier3Dirk Müller4Institute for Energy Efficient Buildings and Indoor Climate, E.ON Energy Research Center, RWTH Aachen University, 52074 Aachen, GermanyInstitute for Energy Efficient Buildings and Indoor Climate, E.ON Energy Research Center, RWTH Aachen University, 52074 Aachen, GermanyInstitute for Energy Efficient Buildings and Indoor Climate, E.ON Energy Research Center, RWTH Aachen University, 52074 Aachen, GermanyInstitute for Energy Efficient Buildings and Indoor Climate, E.ON Energy Research Center, RWTH Aachen University, 52074 Aachen, GermanyInstitute for Energy Efficient Buildings and Indoor Climate, E.ON Energy Research Center, RWTH Aachen University, 52074 Aachen, GermanyTo achieve climate goals, the European Union needs to increase building renovation rates. In owner-occupied buildings, energy cost savings provide financial incentives for renovation. However, 30% of all Europeans live in rented property, where conflicting stakeholder interests arise. Landlords are responsible for renovation decisions (building envelope and energy system) and the corresponding investments. Tenants face rising rents and only slightly benefit from falling energy costs. The literature calls this conflict the landlord–tenant dilemma. However, publications lack a quantification, leaving gaps in understanding its impact on technology choices and the heat transition. To address this, we incorporate the perspectives of landlords and tenants in a model-based approach for optimized technology choice (mixed-integer linear program). We compare optimal individual technology choices with the total cost optimum (including costs for landlords and tenants) for renovation decisions. Additionally, we examine how changes in the regulatory framework affect the economically driven landlord’s technology choice. Our study reveals that total costs and emissions are up to 60% and 283% higher for landlords deciding for rented houses compared to owner-occupied properties. Current approaches to solve the dilemma partly favor the development of climate-friendly energy systems. However, the renovation of the building envelope and operation costs are mostly disregarded in the decisions of landlords.https://www.mdpi.com/1996-1073/17/3/686landlord–tenant dilemmarenovationmulti-family housesoptimizationMILP
spellingShingle Larissa Kühn
Nico Fuchs
Lars Braun
Laura Maier
Dirk Müller
Landlord–Tenant Dilemma: How Does the Conflict Affect the Design of Building Energy Systems?
Energies
landlord–tenant dilemma
renovation
multi-family houses
optimization
MILP
title Landlord–Tenant Dilemma: How Does the Conflict Affect the Design of Building Energy Systems?
title_full Landlord–Tenant Dilemma: How Does the Conflict Affect the Design of Building Energy Systems?
title_fullStr Landlord–Tenant Dilemma: How Does the Conflict Affect the Design of Building Energy Systems?
title_full_unstemmed Landlord–Tenant Dilemma: How Does the Conflict Affect the Design of Building Energy Systems?
title_short Landlord–Tenant Dilemma: How Does the Conflict Affect the Design of Building Energy Systems?
title_sort landlord tenant dilemma how does the conflict affect the design of building energy systems
topic landlord–tenant dilemma
renovation
multi-family houses
optimization
MILP
url https://www.mdpi.com/1996-1073/17/3/686
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