Thursday 22 October 2009

Energy Performance Certificates for Landlords

The Energy Performance Certificate is effective from 1 October 2008 and it would be binding the landlords to produce an Energy Performance Certificate (EPC) to the tenant. The landlords of rental properties have to be ready with this certificate whenever they rent any building or part of building. The certificate has all the information about the energy efficiency of a building and is a record of the carbon emissions from the building.

If there is a tenant already existing, you do not have to provide him/her an EPC as a landlord. Since April 6, 2008, the EPC is required by the buildings that have a floor area of more than 10,000 sq meters. From the start of October 2008, other commercial buildings that are prepared to let in tenants also need the EPC. The certificates are the results of the government's Home Information Packs or HIPs.

If the property is rental, there is no need for the EPC to be renewed every time the property is available at the rental market. The landlord should be opting for the EPC renewal after every 10 years.

An EPC closely resembles any other certificate relating to household gadgets like refrigerators and washing machines. Every EPC comes with a recommendation report that bears suggestions and advice for the landlord to bring about improvements for saving power and money. That is why, energy efficiency and fuel costs are vital part of the investment that you want to make as a landlord.

What does an EPC cost?

The standard rate per EPC is approximately £75. If you own a larger property, you may have to pay more.
Cases when an EPC is not compulsory

If you belong to any of the following situations, you can give your EPC a miss:

- If the prospective tenant has a shortage of funds for renting the property
- If you are adequately prepared to lease out your property to the tenant
- If you agree to rent your building by rooms and want your tenant to share bathrooms or kitchens

The Energy Performance Certificate provides carbon emission and energy efficiency rating of the buildings. A building is rated as G for being very energy inefficient, while a building, which is highly energy efficient is rated as A. Remember that being the landlord, you hold the prime responsibility of the building and therefore, prior to renting it out to the tenants, make sure that the building is energy efficient. The EPC is essential for renting out the property. In case, you appoint an agent acting on your behalf, make sure that he abides by all the rules and regulations.

The EPC certificates of the buildings are comparable with EPC certificates of other buildings to determine the condition of your building. The certificate specifies in details about the estimates of the fuel costs and carbon emission of current, hot water and heating, lighting and potential energy use. The certificates are based on standard methods coupled with standard emissions about energy usage. However, the energy consumption is dependent on the behaviour of the occupants of that building.

The EPC certificates as issued by Domestic Energy Assessors convey information regarding the details about the property incorporated in the reference information. It mentions the type of property whether it is house or flat, the sole reference number that has been stored in the central register and the date of the certificate. In the certificate, there is information pertaining to the energy assessor like the name of the assessor, the accreditation number, the company name and the most important of all, the contact details. However, being the landlord always make sure that you possess the Energy Performance Certificate and produce it while you rent the property, otherwise you may be charged a hefty fine.

1 comment:

  1. As someone who writes about energy efficiency issues primarily as it applies in the U.S. it is interesting to see how this is handled in other countries.

    I would be interested in knowing how effective this program is in cutting carbon emissions and whether it has been expensive to implement. Are landlords and tenants experiencing a long term savings because of the enforced energy efficiency?
    Liz Nichols
    Content manager for Green Research Council, Inc.

    ReplyDelete