Landlords have a lot to keep track of when it comes to their property. From finding and screening tenants to maintaining the property, there’s a lot to do. And one of the things that landlords need to be aware of is Energy Performance Certificates (EPCs). An EPC is required by law whenever a property is built, rented out, or sold. It contains information about the property’s energy use and typical energy costs. This article will provide an overview of what landlords need to know about EPCs.
What is an EPC?
An EPC certificate (Energy Performance Certificate) is a document that provides information on the energy efficiency of a property. The certificate is required by law when a property is built, sold, or rented and must be displayed prominently in any marketing material.
The certificate includes an energy efficiency rating on a scale of A-G, with A being the most efficient and G the least efficient. The rating gives an indication of how expensive it would be to heat and light the property, as well as how much carbon dioxide would be emitted.
The certificate also includes recommendations on how to improve the energy efficiency of the property. These recommendations are tailored to the specific property and can range from simple measures, such as draught-proofing, to more major improvements, such as insulation or installing solar panels.
If you are a landlord, it is important to be aware of the requirements for EPC certificates, as failure to comply can result in fines of up to £5,000. For more information on EPCs, please see our other blog articles or contact us for advice.
Why do landlords need an EPC?
As a landlord, you are required to have an EPC for your property. An EPC is a certificate that shows how energy efficient your property is. The certificate is valid for 10 years and must be renewed if you make any changes to the property that would affect its energy efficiency.
How to get an EPC for your rental property
If you’re a landlord, you’ll need to get an Energy Performance Certificate (EPC) for your rental property. You can get an EPC for your property by commissioning a qualified assessor to carry out an inspection and produce a report. The cost of an EPC depends on the size and type of property but typically starts at around £60.
Once you have your EPC, you must make it available to prospective tenants before they sign a tenancy agreement. You must also provide it to the tenant at the start of the tenancy.
If you don’t have an EPC for your rental property, or if it doesn’t meet the minimum energy efficiency standards, you could be fined up to £4,000.
The benefits of having an EPC for landlords
An EPC for landlords provides a number of benefits, including:
- Reduced energy bills: An EPC can help landlords to identify ways to reduce the energy consumption of their property, resulting in lower energy bills.
- Increased property value: Properties with an EPC are typically valued higher than those without one, meaning that landlords can potentially increase the value of their property by obtaining an EPC.
- Greater tenant satisfaction: Tenants are often more satisfied with properties that have an EPC, as they know that the property is energy efficient and, therefore, cheaper to run. This can lead to increased occupancy rates and shorter void periods.
The different types of EPCs
There are four different types of EPCs:
1. A standard EPC is valid for 10 years and is used for properties that are not considered to be ‘new.’
2. An interim EPC is valid for 12 months and is used for properties that have had major changes made to them, such as a change of use or an extension.
3. A display energy certificate (DEC) is valid for 2 years and must be displayed in public buildings over 1,000m2 in size.
4. An advisory report is valid for 6 months and provides recommendations on how to improve the energy efficiency of a property.
The penalties for not having an EPC Certificate
The penalties for not having an EPC Certificate can be up to £5,000. The most common penalty is a fine of £200. The other penalties are:
- A court order to get the property up to the required standard
- An order to stop using the property until it is brought up to the required standard
- A civil action for damages
The most common way that landlords are fined is through a Fixed Penalty Notice (FPN). This is issued by the local authority and is usually £200. If you do not pay the FPN, you will be prosecuted and could end up with a criminal record and a much larger fine.
If you’re a landlord and you don’t have an EPC certificate, you could be fined up to £5,000. You could also be fined if you don’t provide your tenants with information about the energy performance of the property.
How to interpret your EPC results
When you receive your EPC results, there are a few things you should take into account. The first is the grade that your property has been given. The second is the number of bedrooms in your property. Lastly, you should consider the specific recommendations that have been made to improve the energy efficiency of your home.
Grade A means that your property is very energy efficient, and grade G means that it could be improved. If your property falls somewhere in between these two grades, don’t despair! There are still plenty of ways to make your home more energy efficient.
The number of bedrooms in your property will also affect how easy it is to make improvements. If you have fewer than five bedrooms, then it will be easier to implement changes than if you have more rooms. This is because smaller properties often have less complex heating and hot water systems.
Finally, take a look at the specific recommendations that have been made for your home. These may include installing insulation, draught-proofing windows, and doors, or upgrading to more efficient heating and hot water systems. By taking these measures, you can improve the energy efficiency of your home and save money on your energy bills.
How can I improve my EPC rating?
If you’re a landlord, you may be required to improve your EPC rating. Here are some ways to do so:
1. Upgrade your insulation. This will help keep heat in, making your property more energy-efficient and lowering your energy bills.
2. Install double-glazed windows. Not only will this improve your EPC rating, but it will also reduce noise levels and make your property more comfortable for tenants.
3. Upgrade your heating system. If your heating system is old or inefficient, upgrading to a newer, more efficient model can help improve your EPC rating.
4. Implement energy-saving measures such as LED lighting or solar panels. These measures can help lower your energy consumption and save you money on utility bills while also improving your EPC rating.
5. Hire a professional Energy Assessor to assess your property and provide recommendations on how to improve your EPC rating. An Energy Assessor can identify areas where your property is losing energy and recommend ways to make it more efficient.
By taking these measures, you can improve your EPC rating and make your property more energy efficient. This will not only benefit the environment, but it will also save you money on your energy bills.
The benefits of improving your EPC rating
If you’re a landlord, you may be wondering if you need to improve your EPC rating. The answer is that it depends on a number of factors, including the type of property you own and the rental market in your area.
That said, there are some clear benefits to improving your EPC rating. For one, it can make your property more attractive to potential tenants. In a competitive market, an energy-efficient property is likely to stand out from the crowd.
Improving your EPC rating can also save you money on your energy bills. By making your property more energy-efficient, you can reduce your monthly expenses and put more money back into your pocket. In addition, energy-efficient properties tend to have lower insurance premiums, so improving your EPC rating could also save you money on your insurance costs.
Finally, improving your EPC rating is good for the environment. By using less energy, you’ll be helping to reduce greenhouse gas emissions and combat climate change. So, not only can improving your EPC rating save you money, it can also help save the planet!
Conclusion
As a landlord, it is important to be aware of the Energy Performance Certificate (EPC) rating for your property. This rating will affect how much energy your tenants use and, therefore, how much they will pay in utility bills. By understanding the EPC rating system, you can make sure that your property is as energy-efficient as possible, saving you and your tenants’ money in the long run.
If you want to get your EPC, book an appointment with us and get it done now.