Rising energy costs don’t just affect tenants—they affect vacancy rates, complaints, and long-term property value. The good news? Some energy upgrades deliver strong returns for landlords without major disruption or massive upfront costs.

Here are the best energy upgrades for investment properties, ranked by impact.

1. High-Efficiency Heating & Cooling (VEU)

Old gas heaters and inefficient systems are one of the biggest pain points for tenants.

Upgrading to modern split or ducted heating and cooling:

• Lowers tenant energy bills
• Improves comfort year-round
• Reduces maintenance call-outs
• Increases rental appeal

VEU rebates can significantly reduce upfront costs, especially when replacing gas systems—making this one of the highest-ROI upgrades for landlords.

2. Heat Pump Hot Water Systems (VEU)

Hot water failures cause urgent tenant complaints—and emergency replacements are expensive.

Heat pump hot water systems:

• Use 60–75% less energy than old electric or gas systems
• Cost far less to run for tenants
• Are quiet, reliable, and low maintenance

With VEU support available, this upgrade is ideal for planned replacements before systems fail.

3. LED Lighting Upgrades

Lighting upgrades are simple, fast, and effective—especially in:

• Common areas
• Outdoor spaces
• Garages and stairwells

LED lighting:

• Cuts lighting energy use by 60–80%
• Lasts far longer than old fittings
• Improves safety and visibility

For multi-property owners and strata-managed buildings, this is often the quickest payback upgrade.

4. Solar (Where It Makes Sense)

Solar can work well for:

• Multi-tenant properties
• Landlord-paid common area power
• Long-term hold properties

Federal incentives help reduce upfront costs, and while tenants benefit most from bill savings, solar can improve property value and marketability.

What Smart Investors Focus On

The best upgrades:

• Reduce tenant complaints
• Minimise install disruption
• Lower running costs
• Use available rebates properly
• Avoid “cheap now, expensive later” systems

The goal isn’t overcapitalising—it’s smart, rebate-backed improvements that protect your return.

Simple, Landlord-Friendly Upgrades

At Smart Upgrades, we work with landlords and property managers to:

• Confirm VEU eligibility for rental properties
• Schedule installs around tenants
• Provide fixed pricing upfront
• Deliver reliable systems that last

No pressure. No hidden costs. Just upgrades that make sense.

👉 Book a free property assessment and see which upgrades deliver the best return for your investment.

Think Smart. Save Big.