Adding insulation to rental properties is not something that is always considered.

Since many apartment hunters do not consider the energy efficiency of a property, they will probably not ask about the insulation.

However, it is still a good idea to make the investment and add insulation to the property.

In this guide, we will be covering all of the benefits of adding insulation to a rental property.

First, let's go over what rental property insulation really consists of.

What Does Rental Property Insulation Consist Of?

In a property, especially a residential property, insulation is a material that reduces heat loss or heat gain. The material does this by creating a barrier between the inside of your home and the outside, preventing air leaks. This material helps the property be more energy-efficient and potentially save money on utilities.

Below, we will be discussing energy savings and how to reduce energy costs. Before then, however, let's go over how much insulation a property typically costs.


One of the things that concern property owners and real estate investors the most about insulation is the cost. For someone who just purchased an investment property, it may be difficult to come up with any extra cash.

Luckily, insulation does not have to cost too much money, compared with the benefits. To predict what insulation will cost, there are some factors that need to be considered. These factors include:

  • Insulation type
  • Location
  • House layout
  • Property type

For a 2,000-square-foot home, the average price for a mixture of batts and blown-in insulation is $4,500. The low cost of a project like this is around $2,000 and the high-end price is upwards of $30,000.

Although this may seem like a lot, it may be worth it after hearing about all the benefits. Which, are covered just below in the next section.

Benefits of Insulating Rental Property

The Benefits Of Adding Insulation To Your Rental Property

Although the cost of insulating property may seem high, the benefits that come with it definitely make it worth your while. Some of the benefits that we will be discussing below include:

  • Extra comfort in the property
  • Less sound
  • An increase in the home value
  • Lower energy bills

Below, we will be explaining how insulation grants these benefits.

More Comfort

One of the main benefits of insulating your rental property is that it makes it more comfortable. Insulation keeps cold air out in the winter and keeps it inside during the summer. This means that it is easier for the rental to stay warm in the winter and for it to stay cold in the summer.

Insulation does this by air sealing the property. This means that there will be little to no air leakage, making it easier to maintain the temperature in the property.

Less Sound

Another benefit of adding insulation to your rental properties is that less sound will be transmitted inside the property. This means that those inside the property will not hear sound from other rooms. Insulation does this by absorbing the sounds that bounce off of the walls and floors. By doing this, your home becomes quieter and tenants can have more peace within their own rooms.

Increases Home Value

Since we are discussing rental properties, it is important to note that adding insulation increases a home's resale value. Adding insulation can serve as a selling point when trying to sell a property. This is especially true when it comes to places with colder climates. Having proper and updated insulation, especially in these areas, can be the difference between a faster and slower sell.

Saves Money

One of the most important benefits of adding insulation to a property is that it can actually save you money. It has been found that a home that is not properly insulated loses between 20% and 30% of its energy. This means that, in utility costs, you are paying 20% to 30% more for energy that is not used.

This is mainly caused by air leaks around the home. When insulating a property, it is essential that all door panels, windows, and other entry points are properly insulated.

Below, we will be explaining more about how to properly insulate a rental property.

How to Insulate Rental Property

How To Insulate A Rental Property

One of the most difficult parts of insulating a rental property is knowing which areas to insulate. Below, we have compiled a comprehensive list of all the places in a home that should be insulated properly.


The first thing to check in your property to add insulation is the exterior. The most important points that you would want to check include:

  • Exterior doors
  • Windows
  • Wall penetrations
  • Trim and siding

Basically, any point of entry to the home should be insulated.

If the property has single-pane windows, it is probably a good idea to replace them with double-pane windows. Also, wall penetrations refer to any point on the exterior walls where things like pipes, vents, exhausts, or anything else enter the walls of the building.

Once the insulation is added to all of these, it is time to move to the inside.


Surprisingly, there are many things that can be done on the inside of a home to reduce air leakage. Some of the points throughout the interior of the property that should be checked include:

  • Windows
  • Ductwork and pipes
  • Power outlets
  • Flooring
  • Basements

One of the things that some people do not realize is that covering their windows can actually control the air coming from the window. This means that curtains are not just window decor, they can serve as insulation as well.

Now you know all about how insulation benefits your rental property and why it should be included, let's learn about some other ways to save on energy costs.

Save on Utility Bill

Other Ways To Save Energy In A Rental Property

Apart from using energy-efficient appliances, there are other, simpler ways that can save you some money on your utility bills. Now, note that these differences are not monumental. But, if done in unison, all of these can save you a couple of hundred dollars a year.

Installing A Thermostat

The first thing that should be done is to install a programmable thermostat. A programmable thermostat can be set to fit multiple users' schedules and desires. This means that it can be set to different temperatures and different settings depending on the time.

The best use for this is when tenants set it to turn off when nobody is in the home. This way, they are not wasting energy all day and can save on their utility bills.

Using The Fireplace

In many northern climates, homes typically have a fireplace in them. However, not many homes actually use it. If there is a string of cold winter nights, it may be cheaper for the tenant to use the fireplace instead of turning up the thermostat. The fireplace can be used to keep a section of the rental warm, but may not be the best idea if the property is very large.

Replacing The Furnace Filter

If the air conditioner is not heating as it is supposed to, it may be because the filter has not been replaced. Replacing the furnace filter is an important part of maintaining the entire HVAC system. Since dust gets trapped in the furnace filters, the furnace has to work harder to heat certain areas and will use more energy.

Turning Off The Bathroom Fan

Although turning off the bathroom fan may seem like a very minor change, it can actually be pretty significant. When left on for a long time, bathroom fans may begin to suck in air from other rooms. This means that the room can be left hotter or colder than it is supposed to. Thus, the air conditioner works harder to regulate the temperature.

Santiago Aday is a Summa Cum Laude graduate and has a background in software development. As the Marketing Automation Specialist at DoorLoop, Santi loves simplifying the complicated aspects of property management.

Legal Disclaimer

The information on this website is from public sources, for informational purposes only and not intended for legal or accounting advice. DoorLoop does not guarantee its accuracy and is not liable for any damages or inaccuracies.