Overhead costs can climb quickly when property operations are guided by misconceptions, particularly around energy management strategies. After all, energy costs are about more than just keeping the lights on. They’re about providing the very shelter from the elements, providing occupants with basic comforts, and maintaining the value of the property itself.
Of course, just as there are energy management best practices that property managers can implement to reduce their energy costs and improve the value of their properties, there are also energy management mistakes that property managers should avoid because of their hidden costs. And recognizing the differences between best practices and common pitfalls allows property managers to reduce overhead costs, improve property values, and future-proof against expensive operational inefficiencies.
6 Proven Strategies That Deliver Real Energy Savings
Many energy management strategies apply in some cases but not others. But some are universal, and these are the ones that property managers should prioritize, regardless of their commercial property types — hotel, multifamily, student housing, senior residence, or some other form of MDU.
1. Use Smart Thermostats with Occupancy-Based Controls
Energy efficiency starts with everyday use. Smart thermostats help reduce energy waste by aligning HVAC operation with occupancy patterns. Specifically, smart thermostats allow both property managers and occupants to pre-program temperature settings around their preferences and occupancy patterns, reducing energy waste in unoccupied units and common areas.
Property managers can also program smart thermostats in common areas to adjust temperatures to align with high-traffic or occupancy times, ensuring they are not heating or cooling vacant spaces. Occupants can also program their smart thermostats to reduce energy consumption while they are not in the unit. This significantly reduces their own energy bill, as well as operational costs for multifamily property managers.
Verdant thermostats are equipped with occupancy sensors that automatically detect when a room is vacant and adjust HVAC operation accordingly, and eliminates unnecessary heating or cooling in empty spaces. They also feature a Night Detection Mode that recognizes when guests are asleep and maintains comfort until motion resumes. Together, these features provide a balance of efficiency and comfort tailored to the realities of hotel and multifamily living.
2. Centralize Control with a Smart Energy Management System
Managing HVAC systems across multiple commercial properties is challenging due to limited visibility, inconsistent settings, and untrained staff making inefficient adjustments. This can result in higher energy costs and suboptimal system performance.
Verdant’s Thermostat Manager provides a centralized solution, allowing property managers to monitor and control HVAC settings across all units from a single platform. Featuring bulk updates, customizable energy profiles, and real-time monitoring, managers can ensure optimal efficiency without requiring extensive HVAC knowledge.
3. Leverage Energy Efficiency Rebates
Energy efficiency rebates are financial incentives offered by utilities, government agencies, and energy programs to encourage the adoption of energy-saving technologies. These rebates help offset the cost of upgrades like smart thermostats, LED lighting, and HVAC controls — accelerating return on investment (ROI) and making high-efficiency upgrades more accessible.
Verdant’s smart thermostats qualify for many of these programs, allowing property owners to reduce capital outlay while boosting energy savings and occupant comfort.
Rebates typically provide direct cash incentives, bill credits, or tax deductions for implementing approved energy-efficient measures. Eligibility and rebate amounts vary by region and program, often depending on factors such as energy savings potential, building type, and project scope. Verdant’s smart thermostats qualify for many of these rebate programs, enabling property owners to maximize savings while improving guest comfort.
How do rebate programs work?
Some rebates require pre-approval before purchase and installation. This reserves rebate funds and ensures program eligibility (a common step for high-value incentives or large-scale retrofits). Other programs allow post-installation claims but still require compliance with technical and documentation standards.
Before applying, it’s essential to verify local program requirements. Verdant’s Rebate Finder tool simplifies this process by identifying qualifying rebates based on your location and property type.
| ELIGIBILITY CRITERIA | WHAT TO KNOW |
| 1. Thermostat Type Requirements | Rebates typically apply to networked (EMS-integrated) or non-networked thermostats. Networked systems offer greater energy control and savings. |
| 2. HVAC System Compatibility | Eligible systems often include PTACs, PTHPs, fan coils, and electric/gas heat combos. Verdant supports most setups without requiring retrofits. |
| 3. Occupancy-Based Controls | Many programs require built-in occupancy sensors that adjust settings when rooms are vacant — especially for guest rooms or multi-unit dwellings. |
| 4. Construction Type Limitations | Some programs exclude new construction or cap eligibility based on room count. Retrofit projects are often prioritized. |
| 5. Project Caps & Funding Limits | Programs may cap reimbursement at 35–50% of project cost, or limit per-property funding (e.g., $50,000 max). |
Find Energy Saving Rebates Near You
4. Conduct Regular Energy Audits
Before investing in any energy-saving technologies or applying for rebates, property managers should begin with a professional energy audit. These audits provide a baseline for current energy consumption and identify costly inefficiencies from aging HVAC units and leaky ductwork to poor insulation and outdated controls.
By benchmarking baseline usage and analyzing building performance data, energy audits uncover hidden opportunities for improvement and help prioritize investments that will yield the greatest savings. They’re also a common prerequisite for utility-funded rebate programs, which often require proof of existing energy conditions and post-installation improvements.
For multifamily operators and commercial property managers, regular energy audits offer an objective way to:
- Identify system-level inefficiencies (especially HVAC performance)
- Track energy-saving progress over time
- Validate ROI on recent upgrades
- Strengthen rebate applications with documented evidence
Many property owners conduct audits annually or prior to major retrofits. With the right data in hand, it becomes much easier to make informed, cost-effective decisions that support long-term property value.
5. Choose Scalable, Retrofit-Friendly Technology
When it comes to implementing energy-saving solutions across multiple properties, scalability and ease of installation are critical. Property managers need technologies that are not only effective, but also flexible enough to integrate with a wide variety of HVAC systems (without costly retrofits or operational disruptions).
Verdant’s smart thermostats are designed with scalability and compatibility in mind. Whether your properties use PTACs, split systems, or fan coils, Verdant offers broad HVAC compatibility out of the box. The result is a plug-and-play installation process that takes under 10 minutes per unit and requires no specialized labor or HVAC overhauls.
And for larger portfolios, this kind of streamlined deployment translates into:
- Faster rollout across multiple properties
- Minimal disruption to occupants or staff
- Immediate energy savings without capital-intensive upgrades
Just as importantly, Verdant’s technology delivers a rapid return on investment, with most installations paying for themselves in just 12 to 18 months. That makes it not only scalable, but financially practical for both retrofit projects and phased portfolio upgrades.
6. Keep Staff Trained and Up to Date on Best Energy Management Practices
High staff turnover can pose a significant challenge to maintaining energy efficiency, especially in properties that rely on smart thermostats and automated energy management systems. When employees aren’t fully familiar with your protocols, some features can be misused, leading to unnecessary energy consumption and higher operating costs. Training staff specifically to minimize VIP Mode usage keeps energy use under control.
Providing thorough initial training and regular refreshers ensures staff understand how to use energy management tools effectively, adhere to energy-saving schedules, and respond appropriately when overrides are necessary. Ongoing monitoring and support ensure settings stay optimized, gaps are quickly address, and your property runs efficiently – maximizing the value of your Verdant VX4, VX, or ZX investments.
3 Common Energy Management Mistakes to Avoid
The cost-saving potential of smart energy management tools (such as occupancy-based smart thermostats and HVAC systems) is enough to capture the attention of any forward-thinking property manager. But in the rush to implement these technologies, it’s easy to overlook critical details that can undermine long-term ROI. So to avoid costly missteps, property managers should watch out for these three common mistakes that each carry hidden costs, and offset the energy savings they first set out to achieve.
1. Relying on Consumer-Grade Thermostats
Not all smart thermostats are created equal. Whereas consumer-grade brands (such as Nest and Ecobee) are suitable for single family properties, larger commercial properties with a centralized HVAC system require commercial-grade smart thermostats that are capable of managing multiple units and common areas, across multiple properties, and include features as Smart Alerts, Dynamic Recovery, Remote Control, and Flexible Setbacks.
Not all smart thermostats are created equal. While consumer-grade models like Nest or Ecobee work well for individual single-family homes, they fall short in the context of multifamily buildings, hotels, or large property portfolios. These systems simply aren’t designed for centralized HVAC environments where energy management is coordinated across dozens (or even hundreds) of units across multiple properties.
Commercial properties demand a different level of control. Portfolio managers need to monitor, schedule, and adjust HVAC settings across multiple units and locations, often in real time. And that’s where commercial-grade smart thermostats make all the difference. Unlike residential options, commercial-grade systems come equipped with:
- Enterprise scheduling, allowing centralized control of temperature settings across entire buildings or portfolios
- Load balancing, which distributes HVAC usage more evenly to reduce energy spikes and improve efficiency
Real-time performance reporting, helping managers proactively identify issues or inefficiencies - Flexible setbacks and dynamic recovery, enabling systems to intelligently respond to occupancy patterns
Most importantly, commercial-grade solutions are built for scalability. They integrate seamlessly with smart energy management platforms and provide visibility at both the unit and portfolio level, making them indispensable tools for any property manager serious about investing in long-term cost savings.
2. Ignoring Occupancy Data
Data is valuable for the same reason that hindsight is 20/20: it lets us make calculated decisions based on past outcomes and actual probabilities. Data makes informed decisions. And it’s for that reason data trumps opinions.
Similarly, even the most efficient HVAC system can become a source of energy waste when it runs without any occupancy data. Nevertheless, many properties continue to operate on fixed temperature schedules that don’t account for whether a room is actually in use or not.
The result? Wasting energy to heat or cool empty units.
Occupancy-based controls solve this problem by allowing thermostats to adjust in real time based on whether a space is vacant or occupied. This simple shift from static to responsive control can significantly reduce HVAC runtime and improve system performance across the board. However, property managers who ignore this layer of data forego the benefit of:
- Automated energy savings, especially during off-peak hours or extended vacancies
- Improved guest or tenant comfort, with temperatures adjusting upon return
- Data-driven insights, including usage trends that support smarter maintenance and planning
In short, occupancy data closes the loop between HVAC efficiency and real-world use. Without it, even the best systems are working harder (and costing more) than they need to.
3. Overlooking Rebate Deadlines or Eligibility
Rebates are one of the easiest ways to reduce the upfront cost of upgrading to energy-efficient technologies. But one of the most common mistakes property managers make is treating rebates like a bonus, rather than part of the planning process.
In reality, many rebate programs require pre-approval before purchase or installation. Others come with fine print: regional restrictions, equipment requirements, or funding caps that limit how much you can claim. Miss one step, and that money is off the table.
Avoiding this mistake isn’t difficult, but it does require a bit of research and timing. Before making any purchasing decisions, property managers should:
- Check local utility or government websites for eligible programs
- Review requirements for thermostat type, HVAC compatibility, or occupancy control
- Confirm whether pre-approval is required (and apply early if it is)
Verdant’s Rebate Finder tool can help simplify this process by showing you exactly which programs you qualify for based on your property profile. When approached strategically, rebates can significantly shorten your payback period, but only if you take advantage of them while they’re available.
From Overspending to Optimizing
Energy costs are more than just another line item. They’re a daily operational reality, and without a clear strategy for managing them, it’s easy for costs to creep up, eat into margins, and erode asset value over time. In other words, it’s easy for your overhead costs to overwhelm your property’s profitability and value.
Fortunately, smart energy management isn’t rocket science. With the right technologies and best practices in place, property managers can reduce HVAC runtimes, improve occupant comfort, and unlock measurable savings — all without disruptive retrofits or steep learning curves.
From smart thermostats and Energy Management Systems to Rebates and Demand Response Programs, there are now more ways than ever to turn energy waste into operational value. And achieving these energy savings is simply a matter of will and good business sense.
Book a Demo with Verdant
Ready to see how it all works? Book a web demo with Verdant and learn how our plug-and-play energy management solutions can reduce HVAC runtimes by up to 45%, pay for themselves in as little as 12–18 months, and scale across your entire property portfolio.
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