Landlords can often dismiss the green vision as a drain on their property profit, when in fact did you know you could cover such costs with various grants? And offering an eco-friendly property can actually make it more attractive and profitable? What are the benefits of making your rental property more energy efficient to both you and your tenants?
- Increase in property value
- Lowers energy bills for tenants
- Reduces rent arrears
- Attracts longer term tenants
- Achieves higher EPC ratings
- Property is easier to let
- Reduction in emissions
If your property has an electricity meter, then you're eligible for the Green Deal. You can take out a loan to cover home improvements that will make your property greener, and repay through your electricity bill. Because of this repayment method, both you and your tenant must agree to the terms. They will be expected to cover the bill if you choose to repay in this way as opposed to covering costs outright yourself.
How does it work?
A Green Deal Assessor will pay you a visit and decide which measures will be the perfect fit to improve your property. This could include adding insulation, improving the heating system; draught proofing, installing new windows or looking into ways your property can produce renewable energy. From here you will be granted a loan to carry out the suggested works if you wish. Note: Subsequent tenants will also be liable for this additional charge if you choose to repay via the property's electricity bill, so you must tell them too. However, the money they will save in utility bills could well cancel out the cost of the repayments, and they will enjoy a clear, green conscience to boot!
Landlord's Energy Saving Allowance
As a landlord, you could claim back up to £1,500 in tax reductions if you install wall or hot water heater insulation, draught proofing or cavity loft insulation. The rewards will be passed on to your tenants, as they will benefit from lower utility bills and a more eco-friendly and responsible home. Note: You can include this in as many properties as you own, so if you have six properties, you could claim back up to £9,000 etc.
Feed In Tariff (Fits)
These were introduced in 2010 and are really something to get excited about! If you install a renewable energy source at your property such as a wind turbine, solar panels, anaerobic digesters or hydroelectricity, you could secure an additional revenue stream. How? Because you can be paid for the electricity you generate with such measures from the national grid and energy companies - even if the property uses the energy itself! You even receive a "bonus" if you provide the grid with additional energy. It's all part of an incentive to become a greener country less reliant on fossil fuels. It also enables your property to become more self-sufficient which is a major advantage for potential tenants.
There are a plethora of both grants and loans for landlords, but what is available from council to council varies so we recommend you contact your local council as a first port of call for help and advice.
You can also find more information on the Energy Saving Trust website.
Alternatively, if you have a property to let, why not contact your local Whitegates branch today? You could also download our Lettings Guide for information on the landlord services available to you.