Do landlords need EPC surveys?
If you’re a landlord of a commercial property and you don’t have an EPC certificate, you need to get one sorted as soon as possible. You now need an EPC for commercial property as well as residential. It’s not as complex as you might expect though. Here’s why you need an EPC survey.
What is an EPC Survey?
All homeowners, landlords and property owners in the UK are required by law to have an up to date EPC, as of August 1st, 2007. An Energy Performance Certificate (EPC) is essentially a study of your properties energy efficiency and CO2 emissions. Essentially, it states how environmentally friendly, and how cheap to run your property is.
An EPC survey is completely non-invasive, and takes into account elements of the property, like low energy lighting, various forms of insulation, architecture, and building design. It details aspects of your properties energy efficiency, highlighting shortcomings, and grading the building from ‘A’, the best, to ‘G’, the worst. The average property coming in at roughly ‘C’ or ‘D’. A great grade means that the property is very efficient, meaning future tenants will pay less for energy, which can be a great selling point. Failure to get a valid EPC can result in hefty fines for the landlord.
Why You Need One as a Landlord
If you’re a homeowner, a landlord or manage a commercial property with over 50m2 of floor space, then you legally need a current EPC. EPC grades can determine a properties rental and resale value and attractiveness, as well as there being fines and penalties for property owners caught without one.
An EPC certificate is valid for ten years, after which you need a new one. As a landlord, you need to perform an EPC survey prior to renting out the property, with penalties and fines of £200 for those who fail to do this. Failure on varying scales to make sure your rental properties have valid energy performance certificates can result in even larger fines and repercussions, which can be very expensive as a landlord delicately balancing the books. In order to avoid hefty fines and hassle, you need to make absolutely sure your home, rental let, or commercial property has an up to date EPC. It’s not that much hassle or cost to sort out, so save yourself a whole bundle of trouble and hassle, and get a company in.
It’s Cheaper for Everyone
Why is having a good EPC grading ideal? Well, it’s cheaper, for you and tenants. When a building stands empty for a couple of months, any bills will be lessened by the insulation or greater overall efficiency. Decent levels of insulation make the building more secure against the cold in winter and allow it to stand cooler in summer, without eating any power.
For tenants, it’s much cheaper on the day to day running of the home. Buildings that make use of energy efficient lighting, insulation, both loft and cavity, and modern heating systems, as well as solar power, are much cheaper to run. If you prime your home or property to be the most efficient building it can possibly be you can expect to see your heating and energy bills drop right off.
Sadly, it’s always going to be harder to get an older building to the same level of efficiency as a newer, more modern building, but you can still make a sizeable dent in your tenant’s bills, and your EPC grade will attest to that. Running an energy efficient, environmentally friendly accommodation as a landlord can make you very appealing to potential tenants.
Make It an Easy Sell
The vast majority of people, while looking for their property or home to rent or buy will incorporate the future heating and energy costs and bills into their decision. They’ll stretch their budget to more expensive properties if they know they’re going to be making a saving on the energy prices and costs. People do not like spending unnecessary amounts on heating and energy, especially in already expensive inner city locations. Offering them the most efficient home possible, and allowing them to keep their energy bills to a minimum can mean you can charge higher rates for the accommodation, meaning you can make back the money spent optimising the property for a high EPC grade.
Also, this makes selling a property that’s been optimised for maximum energy efficiency and minimum CO2 emissions much easier, and with a perpetually fluctuating housing market, having an edge on the competition can make your life much easier. Having a high grading to state in your sales or letting ad will be a real plus when it comes to selling. When it comes to letting go of properties, and selling them on, having a high EPC grade can make finding that perfect buyer that much easier.
