Split Incentives for Different Tenants in the same Building

In some Member States living in multifamily apartment buildings often entails the lack of shared responsibility over common areas. While these buildings require a coordinated wholesale assessment of their energy efficiency needs, often the lack of shared priorities, opportunities and access to financial resources between residents prevents cooperation. This is further reinforced by the lack of regulation ensuring a lawful distribution of responsibilities among all owners and tenants living in the building.

With technical and construction standards differing across EU-28, owners of properties in such buildings end up either tied up to the will of all residence to go through energy efficiency improvements or completely free to carry out improvements according to their own interpretation of energy efficiency. While the first approach results in long and tedious administrative procedures attempting to align all residents, the fragmentary nature of the second leads to suboptimal investments in solutions of limited performance when applied to a section of the building.