“Going green” or “Eco friendliness” are phrases used when describing energy efficiency. To some, they are just buzzwords. When it comes to our homes, energy efficiency is becoming an increasingly important draw when it comes to deciding where to live, as being able to save money on heating and electricity bills is something many people find desirable. As a landlord running a business, energy efficiency is important for many reasons, here are some of the main ones.
You risk being fined
Getting an Energy Performance Certificate (EPC) is now one of your obligations as a landlord. The certificate is required within two weeks of advertising your property on the market or at least by the time a contract is signed on the property. Failure to provide an EPC when requested can lead to fines. It is therefore important to have your property assessed by an accredited body and then keep it for when required.
You may not be able to rent out property soon
Under current laws, you cannot let out your domestic property from 2018 if the EPC rating is below an E grade. If you go ahead and let out the property, authorities can issue fines of £5,000. This is why buy-to-let investors are also advised to consider the energy efficiency of properties before purchase or investment.
You can improve the value of your home
If you improve the energy efficiency of your property, you can increase the value by up to 38%. Why? Buyers are looking for measures that will help them to save money on bills when they move into the property. A home with an efficient boiler, loft and cavity wall insulation and double glazing will certainly save more money on bills than one missing those details.
You can increase your tenant pool
At a time when eco-friendliness is a hot topic, landlords stand a better chance of finding tenants if they market their property as eco-friendly. This is especially true if your property is located in an area where students, millennials and upwardly mobile professionals are most like to make up the bulk of the letting public. People in this demographic understand the importance of chipping in their bit to help save the planet. Why should they rent a property that is not energy efficient?
As a landlord, you can no longer afford to ignore energy efficiency. Apart from getting on the good side of the law and the letting public, energy efficiency can help reduce maintenance costs, improve the value of your property, and in some cases, help you get cheaper insurance premiums. Fortunately, these changes are rarely capital intensive.