Green leases include clauses to ensure that a tenant’s sustainability goals are addressed through operational factors and facility improvements. 

Typical green leasing clauses can include physical building requirements, such as environmentally-preferable requirements for construction and demolition waste, construction and interior finishing materials, or IAQ; operational requirements including recycling programs or submetering; or compliance with programs promoting high energy and water efficiency such as Energy Star®.

Encouraging local landlords to perform green tenant improvements promotes environmental health by generating market demand for sustainability, while also increasing skills of local property owners and tradespeople. When negotiating new leases, prioritize improvements and upgrades that are most important to the building, based on issues relevant to residents and the local community. Also consider the size of the leased property; a renter is likely to have greater influence when leasing entire apartment complexes or several residences rather than individual units or single-family dwellings.

When examining potential residential properties, evaluate the following location factors:

• • • Proximity to work: Select residential property locations that allow staff to walk, bike, or take public transit to work. Where alternative commuting options are not available, and require use of personal vehicles, aim to minimize residents’ travel distance.
    • Walkability: Identify neighborhoods that allow residents to walk or bike to basic amenities, such as shops, schools, services, and medical facilities.
    • Accessibility to public transit: If safe and reliable public transit is available, ensure that residents are able to use the service. Select properties within walking distance of transit lines or stations, or those with park-and-ride facilities.

Evaluate the benefits and drawbacks of different types of leases, such as the following:

• • • Gross lease: Landlords pay all utilities and expenses and benefit from any savings, therefore are encouraged to make capital investments. However, there is limited incentive for tenant efficiency.
    • Net lease: Tenants pay all utilities, thus are encouraged to implement conservation measures. However, landlords are not incentivized to make capital improvements based on resource efficiency, and residents are subject to volatile energy price fluctuations and escalations over the lease term.

Consider incorporating the following ongoing operational requirements into the lease:

• • Green power: Green power purchasing, where available and when utilities are provided by the landlord
  • Low-impact site maintenance: Non-toxic landscaping and site maintenance products
  • Green cleaning: Environmentally-preferable cleaning products
  • HVAC system maintenance: Scheduled and implemented regular furnace and equipment maintenance, as well as duct cleaning and filter replacement
  • Recycling: Recycling service and collection bin or separation area
  • IAQ: Immediate remediation of mold or indoor air pollution issues, or temporary housing provided for residents during pest control treatment application
  • IAQ: No- or low-volatile organic compound (VOC) paints, carpeting, and furnishings