The value of energy efficient properties
The value of energy efficient properties
Offering energy efficient properties in the rental market can be beneficial for both landlord and tenant. Not only is saving the environment an ever-present media topic, when used correctly, energy efficiency can also be a money-saving, money-making tactic. According to Smart Energy GB 41 percent of Brits would pay more for an energy efficient home, and 15 percent would spend at least 10 percent more.
How to be energy efficient
• Gas & electricity
If you don’t have one of the 12 million gas and electric smart meters¹ that have already been installed across the country, you may be missing out on serious savings if you don't have one. Smart meters send usage straight to your supplier you only pay for what you use, helping you manage your costs and budget forecasts. You may also consider shopping around. Comparison websites are a simple way to check whether you could be getting a better deal elsewhere. The initial hassle of moving suppliers for introductory offers or fixed rate prices could potentially save you hundreds of pounds a year.
There are two ways to get billed for your water supply: you either pay a fixed bill depending on the size of your property, or you pay for what you use. Installing a water meter is also a money-saving option, though you should check which option makes better economic sense before deciding which route to take.
Consider installing a smart heating system. They usually allow you to set predetermined parameters which will prevent your tenants from turning the heating too high during the winter or leaving heating on during vacant periods, allowing you to keep your costs down.
• Energy saving light bulbs
According to Hometree, energy-saving light bulbs can last up to 12 times as long as standard light bulbs. Small savings like these can soon add up, especially if you manage hundreds of properties. LED bulbs are generally the most popular type of energy saving light bulb.
• Double glazing
All properties loose heat via their windows, however energy-efficient glazing along with other energy-saving methods can reduce your energy bills significantly. The highest window rating available is ‘A+’, and can save the most energy. ‘A’ rated windows can offer annual savings of up to £120-£155 on a detached house and £80-£100 on a semi-detached house. More information on double glazing can be found on gov.uk.
Research from Smart Energy GB revealed the parts of a property that have received the most green investments. A new roof came out on top, with 54 percent of people surveyed investing in making their roof more energy efficient. One option is converting a standard roof into a ‘cool roof’, i.e. a roof designed specially to reflect more sunlight and absorb less heat than a standard roof. A new boiler, cavity wall insulation & underfloor heating were also popular investment areas.
Being efficient on a budget
Some of the renovations we’ve mentioned in this blog can require a large financial investment, though there are ways in which you can be energy efficient without breaking the bank. You could consider installing a more efficient shower head (which you can usually pick up for under £20). According to Smart Energy GB, 25 percent of homes already have this installed. Installing draught proofing around doors and windows to stop heat escaping and therefore saving on heating bills - research from Smart Energy GB showed 20 percent of homes have installed this.
Decide which investments to make according to your financial resources and your tenants’ needs. However, with 51 percent of millennials² likelier to pay more for an energy efficient home, if young renters are your target market you should consider making improvements to keep up with the competition.
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