If you’ve invested in an older property to rent out to tenants you will need to make some upgrades to bring it up to standard first, especially in light of changing requirements around energy efficiency and living standards in the private rented sector.
The extent of the changes will depend on your individual property and budget, but with a growing demand from tenants for energy-efficient properties, as well as the new requirements from government, such investments should help you to future-proof your property.
How regulations are changing
Understanding your legal responsibilities will dictate where and how you start with your renovation plans. As it aims for net zero, the government is aiming to improve the energy efficiency of all properties.
Currently, rental properties must achieve an EPC (energy performance certificate) rating of E as a minimum, but the government has longer-term ambitions to raise this to a C rating by 2030. Ahead of the deadline, some tenants are already insisting on C-rated properties, conscious of energy prices increasing following April’s rise in the energy cap.
As part of the changes proposed within the Renter’s Rights Bill, the Decent Homes Standard will also be introduced to the private rented sector. This will require landlords to bring properties to a safe and comfortable condition. Both these changes make retrofitting essential for compliance and there are a number of improvements you can make. These range from simple and cheap changes to more extensive investments.
Insulate to accumulate
Keeping warm air in during the winter and protecting your property from heat gain during the summer through effective insulation is one of the best ways of improving the energy efficiency of your property.
Double-glazed windows and doors are a must-have today. They are a quick win for reducing heat loss but also minimise noise disturbance and improve security for tenants. You should also consider adding or upgrading roof and wall insulation since up to a third of heat can be lost through these.
Upgrade heating systems
Investing in upgrading heating may feel like an unjustified expense if it’s already doing its job. However, a new energy-efficient boiler, such as a condensing boiler, can reduce costs significantly. Couple it with smart thermostats that provide you or your tenants with greater control over the heating and even more savings can be made. If you are providing white goods then you should opt for energy-efficient versions here too.
Consider renewables
If you have a higher budget then you may want to consider installing solar panels to enable you to offset electricity costs, earn through feed-in tariffs and appeal to environmentally conscious tenants. Rather than a traditional boiler, you could consider investing in an air-source heat pump.
Cost-effective upgrades
There are various grants and assistance available to help landlords in retrofitting their properties, but there are cost-effective upgrades you can make too. Even something as simple as upgrading to LED bulbs in your older property allows you to reduce the electricity used and expands the lifespan of your lighting since they last longer than traditional bulbs.
Investment in retrofitting isn’t a nice-to-have but a must-do to ensure compliance and enable you to attract tenants.
At PH Estate Agents, we specialise in properties across Middlesbrough and North Yorkshire. We believe in traditional estate agency values, based on trust and exceptional customer service.