With the impacts of climate change becoming ever more evident, and fast-rising energy costs, more and more renters are moving “energy-efficient” towards the top of their list of desired rental features. However, when it comes to making improvements on the property many Landlords aren’t prioritising eco-friendly options. The costs involved are too steep and they don’t realise the difference this can make to the marketability and value of their property.
But, as we said many tenants are actively looking for ‘greener’ properties, making your property more environmentally friendly can be a great idea to help secure valuable tenants and retain them.
A lot of the time when someone talks about making a property more environmentally friendly people immediately think of solar panels. But the cost of solar panels is quite prohibitive and with such a large upfront cost it can seem hard to imagine you’ll reap justifiable financial returns.
However, there are a lot of smaller and more affordable changes that can be made around a home that will improve the overall efficiency of the property. Careful sums need to be done before these improvements are made, but done right even minor adjustments to a property could increase the value of your rental property and make it much more appealing to tenants.
Many people are becoming more environmentally aware, especially in the UK and throughout Europe. The evidence of the damage that humans have done to the planet is hard to avoid for anyone that watches the news, routinely goes on the internet, or ever uses social media (so pretty much everyone).
People are more and more willing to take choose the option that is better for our planet - even if it costs them more or is less convenient. Just look at the plastic bag tax? People might have gotten annoyed at first, but the tax has reduced our plastic bag use by 85% since 2015! We have moved towards more sustainable use of reusable bags and people are proud of that fact.
On top of this, the most environmentally conscious generation (millennials, born approximately 1982 to 2004) are quickly becoming the largest renting demographic.
This means they’re far more likely to want some element of eco-friendliness in their homes, especially as they begin to (or already have) children.
Along with the typical eco-friendly types, many families also like to be environmentally conscious, and while women tend to be more earth-friendly than men, the number of both is growing.
If you are considering your eco-friendly options it is well worth taking a detailed look at any grants, allowances and tax breaks available.
Although making a property more eco-friendly may seem high cost, these grants and allowances can make it much more affordable.
The UK government along with a vast number of countries worldwide recently signed a pledge that commits the country to reduce its greenhouse gas emissions by as much as 80% by 2050.
Housing has been identified as a key area where a big difference in energy consumption nationwide can be improved. To help the process new regulations and plans were drawn up for new builds, however, a lot of work still needs to be done on older homes. For this purpose, a number of grants were introduced.
For example, the Green Deal and the Renewable Heating Incentive both aim to incentivise eco-friendly upgrades to older homes. It is well worth then, doing some research to see if there are any grants available for you before you start work on any improvements.
When it comes to solar panels, many people only see the prohibitive upfront costs. However, with the feed-in tariffs (which have been available since 2010) people who generate their own energy through solar panels or wind turbines can add their extra energy to the national grid and receive payment for it.
My Grandfather invested in solar panels years ago and with the grants, he got at that time, and the current feed-in tariffs his solar panels will have covered the cost of the install (as well as all his energy demand since the install) and begin generating a profit by 2020...
New buildings are all designed to be eco-friendly with good insulation in the walls and roof as well as double - or even triple glazing. Older buildings though particularly period ones tend to be draughty, with ill-fitting doors, and single glazed sash windows, which, whilst beautiful, leak heat like sieves. Installing double glazing or fitted shutters are just one easy way to improve an old building EPC rating.
As we mentioned, solar panels are an obvious option, but they aren’t always possible, and they aren’t the cheapest option. Here are 5 more ways that you can consider to make your property more energy-efficient.
Old boilers are notoriously inefficient, they are also liable to breaking (maintenance fees can end up costing more than a new boiler in some cases!), and just less effective than newer designs. For all of these reasons, new boilers are a big draw for new tenants. Nobody wants an elderly boiler that gives out after ineffectively heating the building in the dead of winter. We’ve all been there, and we’ve all hated it.
Something as simple as properly insulating your loft can have a huge impact on energy bills. Insulating an older home could save tenants hundreds annually. Plus, the impact if the current insulation is poor or non-existent, is instantaneous. Your tenants will very quickly notice the warmth that the new insulation retains.
And don’t miss out on an opportunity to save money - always make sure to check with your local council to see if they have any grants or schemes in place for landlords.
Low flow toilets use less than half the amount of water to flush than the more traditional counterparts. If a property has more than one toilet or is a large family home, swapping to low-flow could have a big impact on water bills.
We all know the bulbs that take an age to turn on and give off an inadequate orange glow that fails to really light up a room. We don’t mean those. The technology behind energy-efficient bulbs has improved massively over the last few years and they are now similar in effectiveness to non-eco-friendly ones, only they use far less energy.
It’s well worth focusing on bulbs because people are bad at remembering to turn them off, notoriously bad.
Smart metres can help reduce energy consumption and bills, particularly in winter. They give you much more complete control over your energy consumption - carefully and accurately monitoring gas and electricity readings and allowing careful adjustments to the system from your smart-phone - even when you’re not at home.
By being proactive and completing a few improvement tasks you can increase the value of a property, minimise vacancies and improve landlord tenant relationships.
Capital Gains Tax is applied to any profits made through investment in assets. It is applicable to things like cars, art and in this scenario, property. In this article, we detail who is liable to pay Capital Gains Tax upon the sale of a property in the UK and how much that tax is likely to be.