H2020 – RentalCal – European rental housing framework for the profitability calculation of energy efficiency retrofitting investments
| Published date | 05 February 2018 |
| Date | 05 February 2018 |
| Pages | 125-131 |
| DOI | https://doi.org/10.1108/JPIF-12-2017-0089 |
| Author | Joseph-Alexander Zeitler |
| Subject Matter | Property management & built environment,Real estate & property,Property valuation & finance |
H2020 –RentalCal –European
rental housing framework for the
profitability calculation of energy
efficiency retrofitting investments
Joseph-Alexander Zeitler
International Real Estate Business School, University of Regensburg,
Regensburg, Germany
Abstract
Purpose –Most of the European apartment blocks are rental units of which the majority needs major
refurbishments in upcoming years to achieve climate goals. On the other hand, it is still difficult for property
owners to evaluate the profitability of energetic retrofitting investments. The purpose of this paper is to
contribute to the situation by forming a standardized framework and tool to calculate profitability of energy
efficiency investments throughout Europe.
Design/methodology/approach –From a European perspective, several different areas of interest
(technical, legal, institutional and financial) have been screened to develop an extensive compendium.
This has been performed by literature research and several national surveys. Based on these findings,
an online-based tool for profitability calculation has been developedto support the decision-making process of
each individual, regardless his knowledge on energy efficiency.
Findings –This paper provides a shortoverview on main investment barriers in Germany.It is found that
both market conditionsand information deficits harm energyefficiency investments. Frequently, the decision-
makingprocess is found difficultdue to inflexible regulationsand lack of knowledge.This dramatically reduces
marketincentives that are alreadyin place. Most often, theinvestor user dilemma isseen as the main investment
obstacle. In this context, transparency and reliability are found to triggerenergy-efficient investments.
Practical implications –Findings are used to identify best practice examples and to assess their
transferability to other markets and countries. Innovative solutions have been extracted to improve the
overall investment climate.
Originality/value –The paper contributes to a sound foundation for energy-related investments and the
fulfillment of EU reduction targets.
Keywords Energy efficiency, Rental housing,Climate goals, Investor user dilemma, Profitabilitycalculation,
Retrofittinginvestments
Paper type Research paper
The following findings are based on a three-year European Union funded project, conducted
by a consortium of eleven institutes and universities in eight countries, including several
German partners and other institutions, such as the University of Cambridge. The general
focus of this project is to improve target group specific knowledge and facilitate investment
decisions on energy efficiency retrofitting opportunities. In a first step, market conditions
Journal of Property Investment &
Finance
Vol. 36 No. 1, 2018
pp. 125-131
Emerald Publishing Limited
1463-578X
DOI 10.1108/JPIF-12-2017-0089
Received 20 December 2017
Accepted 20 December 2017
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/1463-578X.htm
© RentalCal Consortium. Published by Emerald Publishing Limited. This article is published under the
Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and
create derivative works of this article (for both commercial and non-commercial purposes), subject to
full attribution to the original publication and authors. The full terms of this licence may be seen at
http://creativecommons.org/licences/by/4.0/legalcode
The author acknowledges the entire RentalCal Consortium for their input, helpful comments and
suggestions which helped improving the paper. All participating organizations can be displayed at the
official project website: www.rentalcal.eu/the-consortium. Special thanks is given to the H2020
program of the European Union for funding this project under EASME (649656 –RentalCal –H2020-
EE-2014-2015/H2020-EE-2014-3-MarketUptake).
125
European
rental housing
framework
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