Energy efficiency – why should landlords care?

by Readers Question

12:59 PM, 24th November 2013
About 7 years ago

Energy efficiency – why should landlords care?

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Energy efficiency – why should landlords care?

Does undertaking energy efficiency of rental stock helps to increase income? Energy efficiency

Is there any established research on this subject?

Why should I undertake this work, even if a few of these measures are free?

Thanks

Das Debansu

 


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Mark Alexander

13:05 PM, 24th November 2013
About 7 years ago

Das

Answers straight off the top of my head ....

If you can increase energy efficiency without spending money why wouldn't you?

It reduces tenants bills if you do so they may well stay longer which will result in less void periods and re-decorating costs.

Improving energy efficiency helps to save the planet.

I'm not aware of any research proving that tenants pay much attention of energy ratings but I'm sure some do. They certainly pay attention to their bills though!

If you want to be a good landlord I believe you have a moral duty to improve energy efficiency in your properties.
.

13:13 PM, 24th November 2013
About 7 years ago

Because tenants are increasingly looking for energy efficient homes as energy prices soar.

Because if tenants spend less money on utility bills, they are more likely to be able to afford the rent. I recently wrote on Property Tribes that some households are having to choose between heating and eating.

Because if your property does not have the required energy efficiency, it will become un-letttable when new legislation kicks in in 2018!

Simpulz!

Mick Roberts

13:40 PM, 24th November 2013
About 7 years ago

I'm on my 34th FREE good spec Vaillant boiler so far. Approx 45k for 6 hours work per week for last 6 months. Approx 10 more to go in the existing houses that have non condensors in.
And the feedback I am getting from my slightly less well off HB tenants, is that these latest Vaillants are BRILLIANT. The previous boilers were approx. 8-10 years old Bosch Worcestors 24i's. Good boilers. But tenants say this latest technology, they are much faster to get hot, & more flow at the tap. Which in turn will be cheaper.

My kid has moved into one of my houses which has the latest Vaillant, & she & the missus say the flow out the bath tap is better than my condensor. And I had a real good condensor when fitted 10 years ago, as I have 3 bathrooms, so wanted decent flow. So if these FREE latest boilers are better than what we were paying for several years ago, tenants are gonna’ be happy.

And as Mark says, happy tenants stay. Last few days, I’ve had a few boiler pressures go down, talked tenant into fixing it over the phone, & they are really really grateful to have heating working again, so give ‘em some’at good, Bob’s your Uncle.

Regarding increasing income? Have to say yes, as how many of us (I think I’ve had about 3 this year alone), have had tenants come to us who have left last Landlord ‘cause he han’t fixed the boiler for weeks or months? I just don’t get that, my tenants screw if it’s been broke a few hours. So if we’ve got queue for our houses because we have latest boilers, got to be good for income.

I this week, have had existing tenant move from new Vaillant combi to one of my houses with 10 year old Bosch combi, a massive NO was coming cause of the boiler, till I reassured her, she can have a new boiler in this house too once her Tax Credits come through. And that was the deal solver, which then released her old house up for a lot more income than previously, so again, increase of income.

And we should be taking ‘cause approx 2017, there’s gonna’ be some rules coming in that we ain’t gonna’ be allowed to let if rating less than D or E-Don’t quote me on the exact stipulations. Ok 2018 just read Vanessa’s.

Yes, less bills for them, means less excuse about skint for the rent.
Nearly ALL my households have to choose less heat or food.

Steve Masters

14:50 PM, 24th November 2013
About 7 years ago

Reply to the comment left by "Mick Roberts" at "24/11/2013 - 13:40":

Interesting Mike, what scheme do you use to qualify for FREE Vaillant boilers?

matchmade

21:21 PM, 24th November 2013
About 7 years ago

I've seen no signs that tenants are "increasingly" looking for energy-efficient homes; no tenant of mine has ever asked to see the EPC, and no letting agent I've spoken with has ever been asked either. Tenants may ask about the level of bills, but the utility bills pale into insignificance compared with the cost of council tax and the rent itself. Energy bill are also a minor issue compared with fundamental issues like location, attractiveness of the property and the quality of the decor. Consequently I believe that in strict financial terms, spending money on improved energy efficiency makes no difference to rental income (Das' original query): it really just reduces your yield. Of course I would change my mind if any prospective tenant really said "I don't want to rent your property because the energy bills will be too high", but it hasn't happened yet.

Also, if a tenant is seriously worried that they may have to choose between paying the utility bills or the rent, then this is clearly someone with very little disposable income and not someone I would want as a tenant in the first place. It is not the responsibility of landlords to invest their hard-won capital in order to subsidise a tenant's lifestyle or reduce their outgoings. If I live in a draughty and inefficient old house as the owner-occupier, I don't expect my mortgage provider to pay me money to insulate the house, and I don't see why tenants should expect landlords to do this either.

However, if the property is run-down, needs improvement work and you are being offered a large subsidy to improve the energy efficiency, this is probably worth doing, if only to increase the potential capital value of the property when you come to sell. Annual yield isn't the only factor in your overall calculation of returns, and since all property needs maintaining, I would consider energy efficiency measures as part of a programme of scheduled maintenance.

Mick Roberts

15:17 PM, 25th November 2013
About 7 years ago

U know what, I don't the ruddy name of the scheme ha ha. It's not the ECO thing. I think everyone's doing it now, all the big boiler installers know about it, 'cause they want a piece of the pie. All I know is tenant got to be getting Child Tax Credits below 15k a year or earning below 15k with the Child Tax Credits, OR Income Support/JSA WITH Child Benefit.

There are real slow companies out there & fast ones, I'm using Vinshires in Derby at moment, they just started using Ideal boilers. Other firms are using Glowworm, which I would advise against.

Hardest thing is getting the ruddy proof off the lazy tenants. I have direct numbers to Tax credits now for my latest SUPER LAZY last 10 tenants. Also about 4 years ago, I paid for approx. £20 boilers when they was doing that £400 cash back thing if u bought your own latest condensors. Wish I'd have waited, but hindsight is a wonderful thing. But if someone would have said 'Mick in 4 years, we gonna do EVERY house u have a free £1400 fitted combi', we won't have believed it.

Yes, my tenants have never asked for EPC either.

Mick Roberts

15:21 PM, 25th November 2013
About 7 years ago

I think that Tax credits may be wrong as I have tenant with 6 kids who gets over £300pw 15k pa Tax credits, so with her I think they needed to see Income Support proof as well.
Who feels sorry for me, got loads of tenants moving swapping houses this next 2 weeks & muggins here filling in ALL the HB forms 30 pages each tenant. Going round house filling em in, getting back, scanning, printing, waiting for HB. My, u working tenant Landlords have it easy compared to us paupers.

Mark Alexander

15:23 PM, 25th November 2013
About 7 years ago

Reply to the comment left by "Mick Roberts" at "25/11/2013 - 15:21":

Does the name "Affordable Warmth Scheme" ring any bells Mick?

That's the one I looked into but none of my posh tenants qualified LOL
.

Mick Roberts

15:32 PM, 25th November 2013
About 7 years ago

I don't know, I'm useless aren't I at proper technical things, although I can do the Rubiks cube, let's see if the English Master Practioner can when we finally meet on our Russian blonde ladies skiing trip one day.

But I will be good to u all, here is details of company I deal with. They are really snided out though, although I have access & numbers of all top people there who I could introduce to my good buddies Mark & Vanessa-Not rest of u though ha ha:

http://www.vinshire.com/free-boiler.php


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