When it comes to energy retrofits most multifamily buildings’ owners are faced with several challenges. Some of those challenges include the lack of detailed financial analysis justifying the implementation of valuable energy projects. For instance, before conducting a retrofit, it is very important to have accurate information about what retrofit measures the building needs, the cost of each measure, and the projected savings. Another challenge is finding a qualified contractor who will properly install the retrofit measures. One of the most pertinent challenges is the lack of upfront capital. Usually, retrofit projects have a high return on investment (ROI) and a payback period of 5-6 years depending on the scale and type of the retrofit. However, the initial cost to implement those retrofits is very expensive and building owners do not have the capital to initiate such projects. Traditional loans as well as internal financing are not viable options, due to the fact that the owners would acquire all the risk of the investment. That is why financing mechanisms like Energy Services Agreements (ESAs) and Energy Savings Performance Contracts (ESPCs) have quickly gained appeal in the real estate management sector. They offer zero up-front cost for the building owner, brand new equipment and offer the benefits of off-balance sheet financing, significantly increasing property value. Make the smart choice today and enjoy your savings tomorrow with no out-of-pocket cost to finance energy efficiency projects.