Greener is Leaner – Leaner is Cheaper!
All landlords know that if they are currently renting out their property to a tenant(s), then they are legally obliged to follow a number of protocols, one of which is having a landlords insurance policy. A need that a lot of landlords are unaware of, though, is the requirement to have an Energy Performance Certificate. Quite simply, this is a document that you have to have – after a visit from a verified inspector – that records the energy efficiency levels of your building.
Indicators range from Band A to Band G, which homes coming under the A grade category coming out as hugely efficient properties yielding low bills as a result, with those at the other end of the spectrum the opposite – using up copious amounts of energy and thus bills reflecting that consumption.
The benefits of a property that is at harmony with the environment are both fruitful for landlord and tenant. Reduced emissions and gasses make the world a cleaner, safer place to live in and, perhaps more pertinently for some, will result in reduced bills for all involved. As a landlord this gives you a huge selling point to put in front of perspective customers whilst for tenants they will have the security of saving a little bit more at the end of the month as well as the peace of mind that they are living somewhere that is benefitting a landscape that is becoming increasingly urbanised by the day.
Homes are less prone to annoying spates of damages – condensation and subsidence, for example – and this will work in a landlords favour when they are shopping around for their insurance cover. Underwriters specialising in landlord insurance are always more prone to work with clients who have done their upmost to mitigate potential issues, and this very much falls within that bracket.
As if all the above were not enough incentives for landlords to try and push their property into the A grade category, then the tax relief benefit – called the Landlords Energy Savings Allowance – should provide them with the final push. The government, councils and environmental agencies are all working hard to improve the condition of our planet and so this little carrot is being dangled in front of rental property owners. If you are a landlord – small or large – and you put in place a structure that sees you shoot up the efficiency rankings then you can claim back tax on profits generated, which you cannot argue with!
Money can also be claimed that was spent on you improving your investment, whether it is by putting in insulation, a cleaner water purification system or a solar panel roof. Combined with benefits such as a possible cheaper landlord home insurance deal and lower bills, this added tax back means that there has never been a better time to be a landlord than today.
So, what are you waiting for? Time to get saving!