Owning rental property in Minnesota comes with a unique challenge: long, harsh winters paired with humid summers. This extreme climate means tenants use a lot of energy, and inefficient units can lead to higher turnover, more complaints, and expensive maintenance.
The good news? Smart energy-efficient upgrades can reduce your operating costs, increase property value, attract quality tenants, and boost tenant retention.
Here are the top upgrades that provide the strongest return for Minnesota landlords.
1. High-Efficiency Heating Systems (Major ROI in Minnesota Winters)
Minnesota’s heating season often lasts 6–7 months, which means efficient heating isn’t optional — it’s critical.
Best options:
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High-efficiency gas furnace (AFUE 95%–98%)
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Boiler upgrades
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Ductless mini-split heat pumps (also provide AC)
Why it pays off:
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Reduces monthly energy bills (a major selling point to tenants)
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Cuts repair costs by replacing aging systems
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Provides more consistent comfort during sub-zero temps
Landlord tip:
Advertise your property as having “low heating costs” — tenants jump on this.
2. Upgraded Insulation (Most Affordable Long-Term Savings)
Insulation is one of the highest-value upgrades in Minnesota’s climate because it combats heat loss in winter and heat gain in summer.
High-impact areas:
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Attic insulation
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Basement and rim joist insulation
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Wall insulation (especially in pre-1980 homes)
Why it pays off:
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Reduces heating load dramatically
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Low upfront cost
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Can qualify for Minnesota energy rebates
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Improves comfort and reduces complaints about drafts
ROI bonus:
Landlords see lower turnover when units stay consistently warm.
3. Energy-Efficient Windows (A Top Selling Feature)
Minnesota winters make old single-pane or leaky windows a liability.
Recommended upgrades:
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Double- or triple-pane windows with low-E coatings
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Proper caulking and sealing
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Storm windows for affordable improvement on older properties
Benefits:
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Tenants notice immediate comfort upgrade
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Prevents condensation and mold issues
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Reduces heating bills significantly
For older buildings, you can pair weatherstripping with storm windows to see strong savings without the cost of full replacement.
4. Smart Thermostats (Simple, High-Impact, Tenant-Friendly)
Smart thermostats allow tenants to automate heating and cooling which cuts utility bills and reduces wear on your HVAC system.
Minnesota advantages:
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Protects pipes from freezing by maintaining safe temps
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Ensures HVAC isn’t running unnecessarily while tenants are away
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Adds modern appeal for younger renters
Landlord tip:
If you include utilities, this upgrade pays for itself quickly.
5. LED Lighting Conversion (Fastest Payback Period)
LED bulbs use up to 75% less energy than incandescent lighting and last much longer.
Where to upgrade:
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Exterior security lighting
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Hallways and stairwells
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Common areas
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Every indoor fixture
Benefits:
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Reduces electric bills (tenants notice!)
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Cuts maintenance since bulbs rarely need replacing
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Improves property safety with better outdoor lighting
6. ENERGY STAR Appliances (Attract Better Renters)
Tenants value modern, efficient appliances — especially in family units.
Smart replacements:
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Refrigerators
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Dishwashers
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Washers/dryers
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Window or central AC units
Why it matters:
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Lower utility costs
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Reduced maintenance
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Higher appeal for long-term renters
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Helps you remain competitive in the market
7. Sealing Air Leaks (Low Cost, High Impact)
Minnesota homes often leak heat around windows, doors, attics, and crawlspaces.
Fixes include:
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Weatherstripping
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Caulking
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Sealing attic penetrations
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Adding or replacing door sweeps
Benefits:
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Rapidly improves comfort
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Saves 10–20% on heating costs
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Prevents moisture intrusion — a major concern in Minnesota’s climate
8. Water-Saving Fixtures (Reduce Operating Costs Year-Round)
Even though this isn’t climate-dependent, it’s still an efficiency upgrade that pays off fast.
Recommended installations:
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Low-flow showerheads
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WaterSense toilets
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Aerated faucets
Benefits:
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Lower water bills
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Fewer plumbing issues
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Tenants appreciate modern fixtures
Minnesota Incentives to Lower Your Upgrade Costs
Many energy providers in Minnesota offer rebates for landlords:
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Xcel Energy rebate programs
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CenterPoint Energy residential rebates
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Minnesota Weatherization Assistance Program
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Local utility incentives
These can reduce upgrade costs by 20–60%, especially for insulation, HVAC, and smart thermostats.
Energy-efficient upgrades aren’t just good for the planet — they’re great for your rental business. In a climate as extreme as Minnesota’s, efficiency improvements directly reduce expenses, attract higher-quality tenants, and help keep renters long-term.
