How Ann Arbor Property Managers Can Meet Green Rental Standards—and Save

Ann Arbor’s new Green Rental Housing Ordinance has officially changed the game for local property managers.Passed in June 2025 as part of the city’s A2ZERO carbon neutrality initiative, the ordinance now requires all rental properties—approximately 23,000 units—to meet minimum energy efficiency standards before rental licenses can be renewed.

What Does the Ordinance Require?

Property owners must now comply with one of two pathways:

• Home Energy Score Pathway: Achieve a Home Energy Rating System (HERS) score of 110 or lower.
• Prescriptive Checklist Pathway: Complete qualifying energy upgrades from a city-approved checklist, with scores increasing in required points over time.

For more information on compliance options and scoring timelines, visit the City of Ann Arbor’s official page.

How Can Koala Insulation Help?

At Koala Insulation of Greater Ann Arbor, we make it easy to meet the new standards—and even save on long-term energy costs. We offer:

• Free insulation assessments
• Air sealing and thermal imaging
• Blown-in and spray foam upgrades
• HERS rating support and documentation

We simplify the process so property managers can focus on operations while staying in full compliance.

Why It Matters

Not only does proper insulation help meet city requirements, but it also reduces utility bills, improves tenant satisfaction, and increases rental property value. Fines for non-compliance can reach $500 for the first offense and $1,000 for each one after that, so proactive upgrades are crucial.

For more on city discussions and background, check out this WEMU interview with city officials or The Michigan Daily’s coverage.

Ready to get started? Call Koala Insulation of Greater Ann Arbor today to schedule your free consultation and get ahead of the compliance deadline.