The global push for sustainability and energy efficiency has sparked a transformation in the rental property market. By embracing sustainable practices, you reduce carbon emissions, conserve valuable resources, and enhance indoor air quality. Moreover, tenants are increasingly searching for environmentally responsible housing options, making it an attractive and smart decision, for you and your tenant.
This topic is one of great interest to us too; thus, we at Charters are committed to combatting climate change and contributing to reforestation efforts by planting a tree for every sales and lettings property we complete on. This kind of commitment demonstrates our dedication to being environmentally responsible and appeals to our clients who prioritise sustainability in their investing, buying, and rental choices.
Start the process by assessing the energy efficiency of your rental properties through a professional energy auditor. An energy audit costs approximately £60-£120, so it is a good idea to compare multiple quotes before choosing someone. The auditor can evaluate current energy consumption, identify areas needing improvement, and provide recommendations for energy-saving measures. An auditor can also provide you with an Energy Performance Certificate (EPC), which helps you accomplish your energy-saving goals. We can help you arrange this, but it is essential to have it in place prior to marketing a rental property.
An EPC is a legal document that provides an overview of the energy efficiency of a property, and it is created by assessing the construction of the building, dwelling type, and all of its energy features including boilers, insulation, and any renewable energy sources. It then grades your property using a rating scheme with an A meaning ‘Very Efficient’ and a –G meaning ‘Inefficient’. We are not able to let a property below an E rating without an exemption.
According to a study conducted by the UK government, energy-efficient investments in properties can deliver an average ROI of 7.5%. This demonstrates how incorporating energy-efficient measures in rental properties yields a significant financial return. Furthermore, property owners who embrace Green Lettings benefit from various financial incentives too. The government and energy companies frequently offer tax credits, grants, and subsidies. As a result, these incentives not only offset the initial costs but, also contribute to a positive return on investment over time.
Once you have your energy audit results, start making changes. Install energy-efficient appliances, LED lighting, smart thermostats, electric car chargers and programmable timers. Explore the possibility of integrating renewable energy sources. If possible, install solar panels, wind turbines, or geothermal systems. These changes not only save you money, but, they also reduce the reliance your property has on fossil fuels. Also, if the advice and return on your EPC suggests checking your building’s insulation, then take that on. A well-insulated and sealed property can significantly lower heating and cooling costs while providing comfortable living spaces for tenants. However, if you make these changes, you should have a new inspection done so that tenants know the new rating.
Sustainable water management is another essential component of Green Lettings. Property owners can achieve this by decreasing water consumption via installing low-flow fixtures, harvesting rainwater systems to collect and reuse rainwater for non-potable purposes (e.g. gardening or toilet flushing), and educating tenants about water-saving habits through workshops, environmental organisation materials and data, and conservation groups. For instance, an average bath uses about 80 litres of water. A normal shower head running for 4 minutes produces about 36 litres and has a saving of £95 a year on energy bills. That is just one example of how water saving measures can have environmental and cost-saving benefits.
Once you’ve made these changes, highlight your commitment to Green Lettings in your marketing materials and property listings. Showcase the environmental benefits, cost savings, and upgraded tenant comforts and satisfaction that come with renting a sustainable property. This gives your property a significant edge over comparisons not taking these steps. It makes your property more attractive to eco-conscious tenants.
Along your sustainability journey, as a landlord, you will face some challenges when making the switch to Green Lettings. There are initial costs involved, which we touched on above. Upgrading does come with a price, but, landlords can build partnerships with sustainability-focused organisations that offer resources, expertise, and potential funding to support green initiatives. These partnerships can offset costs and provide access to energy saving technology.
Regulatory barriers and complex building codes can pose challenges for landlords looking to implement sustainable practices. Compliance with energy efficiency standards and obtaining necessary permits may require additional time and resources. But, landlords can seek guidance from local authorities and sustainable building organisations. You can utilise their knowledge in navigating the regulatory landscape effectively. You can stay informed about relevant legislation and building codes, ensuring compliance while ‘going green’.
It is also smart to realise that some tenants might be unaware of environmental benefits or lack motivation to adopt a sustainable lifestyle. You can solve that by introducing workshops and newsletters as a means to raise awareness about energy consumption, waste management, recycling, and water efficiency. Provide resources such as energy-saving tips and guidelines. Empower your tenants to make sustainable choices.
If you need any guidance, reach out to us at Charters Estates anytime. We are happy to share with you our advice on Green Lettings.
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