Why a rental property owner invested in energy efficiency

Mark Woodward has lived in Johnson for almost 50 years. He’s worn many hats during that time. For 20 years, he wound the clock at the Masonic Temple in town. He built a community wood-fired pizza oven. He helped create the village green.

Perhaps his longest-lasting contribution, though, is his decades-long commitment to providing affordable housing. Woodward owns 13 apartment units, which he rents for below-market rates. Many of the people who rent from him have been there for years.

Woodward bought his first building in 1985. He lived in it while he did some renovations. It was an old building, and he realized that he was spending a lot of money trying to keep it warm in the winter and cool in the summer. “That was the beginning of my efficiency enthusiasm,” he says. "I slathered the whole building with one-inch foam board. It was one of the best investments I ever made.”

As time went on, Woodward renovated several buildings and began renting them out. He got connected with Efficiency Vermont and developed a relationship with an energy advisor who visited each building and provided recommendations on how to save energy.

He started by installing LEDs. Then he learned about the benefits of weatherizing his buildings to keep energy costs down and make renters more comfortable. He insulated and air-sealed each basement and attic. “It’s about more than just cheap fuel,” he says. “It’s about making sure that your buildings work.”

Woodward also installed heat pump water heaters in his buildings. Heat pump water heaters are much more efficient than traditional electric ones, saving renters money on electricity.

There is often little financial incentive for rental property owners to make their buildings more energy efficient. If residents are paying for utilities, the thinking goes, why would the owner invest in reducing renters’ monthly costs? Woodward says over time, Efficiency Vermont’s offerings have evolved to meet the needs of both parties. Now there are programs that effectively reduce upfront costs for property owners while still benefiting renters at the end of the day. “Efficiency Vermont is looking at the whole picture now,” he says. “That’s a wonderful thing.”

One of Woodward’s rental properties is along the Lamoille River. When the river rose in the summer of 2023, the building flooded. All of the first-floor renters had to leave. “I really had to hustle because people were homeless,” Woodward says. “They were living in the gym at the college.”

By that time, Woodward was working with Colin Healey, an account manager at Efficiency Vermont focusing on rental properties. The flooding had destroyed the furnace and water heater at Woodward’s property. "Everything got wrecked," Healey says.

With support from Efficiency Vermont, Woodward installed dehumidifiers to start drying out the building. Then he gutted the first-floor walls and set to work rebuilding the heating system and replacing the water heater with a heat pump water heater, which will save residents money over time.

When it came to the heating system, Woodward decided to install ductless heat pumps. The building had previously used electric resistance baseboards, which are the most expensive way to heat a space. Woodward estimates that the heat pumps are now saving each unit upwards of $100 a month on heating and cooling.

The heat pump compressors were installed on risers above the flood line to protect against future flooding events. “Mark was able to rebuild with efficiency in mind,” says Healey. “It was a stressful time, but we worked together to overcome a lot of obstacles and bring efficiency to Mark’s renters.”