Energy standards for homes are becoming increasingly strict. Alongside this, tenant expectations are evolving. The outcome? Being a sustainable landlord is no longer optional – it’s essential if you want to stay both legal and profitable.
How do you go about making sure you tenanted properties are up to scratch and future-proofed? Let’s take a look at some of the basics.
Why Energy Efficiency Matters More Than Ever
The UK Government has previously signalled ambitions to raise minimum EPC standards in the private rented sector to C. This could have a huge impact across the sector, especially on older properties, so it makes sense to act now to make your portfolio as energy efficient as possible. This way, you won’t be hit by a big bill but can make energy efficiency improvements in stages. Some you may be able to do yourself with enough time.
Fuel costs are also key. If a tenant is choosing between a well-insulated, energy-efficient home and an older property that’s less well-maintained, they’re going to be opting for energy efficiency every time. The cost of gas and electricity has become a deciding factor.
It’s not just cost either. Many renters are becoming more environmentally aware and want to reduce their carbon footprint as much as possible. Landlords who improve EPC ratings through measures such as loft insulation, double glazing or air source heat pumps will find it easier to secure and keep tenants and reduce void periods.
Is it Time to Retrofit or Reassess?
Making property improvements can be costly. Not only do you have to spend on the renovations themselves, but you may have to have the property empty, or offer a reduced rent, if you’re having significant work done. It’s worth looking into grants and funding for work for older properties, but be aware that these are unlikely to cover the full cost.
A good first step is to conduct a home energy audit. This will help you see what’s working well and where you need to improve, and helps to give an idea of the scope and cost of the work you’d need to do.
It may be that after weighing up the pros and cons, you decide that it’s time to reassess your portfolio. You might decide to sell some older properties and buy newer, more efficient ones, rather than upgrade. Selling a home with tenants in situ can be complex, but it might be the best option for you. If you’re keen on a quick sale, look at traditional and alternative routes to market. Cash buying services for example can take out a lot of the uncertainty for both you and tenants. They offer a guaranteed price and allow you to choose a completion date.
Even if you don’t want to sell now, making your rental property more energy efficient is a great investment, as it will only increase its value long term. The sustainability trend is not something you can afford to ignore so act now to stay ahead of the game.
