Landlords to face a possible fine
Article source: Property & Home - www.fool.co.uk
Landlords are now on a strict deadline to get Energy Performance Certificates (EPC’s) in place for their properties. From the 1st of October it will be mandatory for all landlords of rented properties to have an Energy Performance Certificate which highlights how energy efficient their house is.
The certificates, which are compulsory, last for ten years and by law must be presented each time a new tenancy starts. Landlords will be required to provide the latest version of this document to tenants. If they are unable to provide an Energy Performance Certificate (EPC) they face a £200 fine, will be unable to advertise and promote their rental property and face long periods of vacancy. In the current financial climate, this is something that landlords do not want to think about.
The Marketing Angle
When advertising, promoting and showing their properties to prospective tenants, those landlords who properties have high energy efficiency ratings have a distinct advantage over their landlords whose properties are not so green. Tenants, especially in the current climate will increasingly be looking for ways to save money. One of the being, occupying a property which is energy efficient; this will help them to keep their gas electricity and water bills lower.
Over the longer term, this will have an impact on those landlords’s rental income whose properties are not energy efficient.
Black and White
As well as giving clear details of the energy efficiency of the property, the Energy Performance Certificate (EPC) also gives estimates on how much cash you will need to keep the property in terms of payments for energy bills. This valuable document (from the tenants point of view) will undoubtedly factor hugely in their decision making process; it could even highlight the need for improvements to reduce energy costs.
Why get an Energy Performance Certificate?
As well as giving details of the energy efficiency rating and the estimated running costs, it is hoped that those landlords whose rents suffer as a result of a poor Energy Performance Certificate will take heed of some of the recommended changes on the Energy Performance Certificate.
How much will the cost be for landlords?
As well as independent providers there are a number of national companies offering the Energy Performance Certificate. The costs vary greatly from free to £85 and more.
Paragon Mortgages, which offers an Energy Performance certificate for £85, together with ‘the Landlords Guide to EPC’s said that of the landlords they surveyed recently, 27 percent are planning to get an Energy Performance Certificate in place before the upcoming deadline.
Mortgage Works, part of the Nationwide, have created a bundle for the buy-to-let customers. Those remortgaging their property will have access to a bundled package which includes a free Energy Performance Certificate, a free valuation as well as free legal advice.
A little advice...
Avoid waiting for your current tenants to leave before getting an Energy Performance Certificate in place. It could lead to a £200 fine after the October 1st deadline (which can be served on more than one occasion); and will even lead to time when your property stands vacant. If you’re looking for a trusted Domestic Energy Assessor to come and complete an Energy Performance Certificate for you, visit www.epcregister.com to find a list of accredited assessors.
Attention Landlords!!
Get your act together now before the 1st of October to avoid the fine and keep your property marketable.
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