Energy Performance Certificates - What You Need To Know

Just as home information packs have become the bedrock of legal importance when buying and selling homes, so the energy performance certificate also now has become a prerequisite by law.
Since October 2008 the EPC, (energy performance certificate) has been a legal requirement whenever a building is built, rented out or sold. A sliding scale from A to G rates the energy efficiency of the building. A home or building with an A rating is the most energy efficient and obviously the opposite is the case for a building rated G. Until recently British homes have been averaging a rating of D.
Accredited Energy Assessors are now responsible for providing EPC’s along with a report detailing improvements that should be made to make a property more energy efficient.
There are two main types of energy performance certificate, the Domestic or Residential Energy Performance Certificate and the Commercial Energy Performance Certificate. In addition there is also a Display Energy Certificate as detailed below.
Residential Energy Performance Certificate

• Required by law for homes bought, sold or let.
• Certificate is valid for ten years and reusable within that time frame
• Landlords commission EPC
• EPC must be made available for inspection by applicants
• Free copy provided to tenant prior to letting

Commercial Energy Performance Certificate

• Non residential buildings generally need Commercial EPC when built, sold or let
• Similar to domestic certificates
• Buildings of certain criteria also require a DEC ( Display Energy Certificate)

Display Energy Certificate

• Different than both the residential EPC and the Commercial EPC the DEC has to show the actual energy usage of a building
• Display Energy Certificates only required for buildings with total useful floor area of over 1,000m squared that are occupied by public authorities and institutions providing public services to large number of people who are required to visit the building
• Must be displayed and visible to public
• Valid for one year
• Always accompanied by advisory report detailing the list of measures taken to improve the energy rating of the building
• Advisory report valid for seven years

In this new age of energy awareness, most people can see and appreciate how important these energy performance certificates are and the role they will play in the future of all buildings in both the residential and commercial sectors.
So whether buying or selling a property in the near or distant future it is crucial to have all the information needed regarding these certificates to ensure smooth transitions and transactions in what undoubtedly can be life altering decisions.

Energy Performance Certificates Top Ten Tips for Compliance

Here are some tips which may come in handy when preparing for the introduction of Energy Performance Certificates (EPC's).
1. Ensure you are aware of any properties you have which will be subject to the new legislation. This will depend on the size and property usage.
2. Formulate a strategy for managing this. Review and identify which buildings you intend to sell, modify or lease and prioritize these accordingly.
3. Identify any accredited companies that can provide Energy Performance Certificates. Insurance Brokers or property management companies may be able to assist you to find out who will be able to provide your energy performance certificates.
4. Budget for any costs associated with bringing your property into compliance with recommendations any consider what potential improvements to your assets may result from your energy grade report. A low energy grade could be used as a bargaining tool to reduce rent and may impact upon the value of your property.
5. Take some time to collate the information needed to complete your EPC. It requires details such as:
• building size • total usable floor area • your building asset register • up-to-date Operation & Maintenance manual/log book for your building 6. Make sure your property valuation(s) are current.
7. Review your lease/tenancy agreements. Make sure they meet current standards as identified by the British Property Federation.
8. It is the responsibility of the user/operator to make sure that the energy assessment of air conditioning audits is carried out. Be aware the size of your property and engage with a competent person to complete the inspection.
9. If you are required to produce an Energy Certificate for display, ensure you have the last 12 months' utility bills available, preferably in electronic format.
10. Go to a Government EPC site to read your full responsibilities as landlord or tenant with regard to the Energy Performance of Buildings Directive.
Energy Performance Certificate is a glorious way and bargaining tool to reduce rent and may impact upon the value of your property. A step-by-step strategies to make your success a reality using Energy Performance practices.

5 steps to letting your property

5 steps to letting your Property
1. Obtain permission from appropriate parties:-
• Mortgage Company:
If you have a standard residential mortgage you will need to request permission to let from the mortgage company - they usually make a small charge for this and may place some restrictions on the types of tenant or tenancy details.
• Leaseholder:
If you own a leasehold property you may also need to inform the Headlease holder that the property will be let and check the lease for any restrictions.
• Insurance Company:
You will need to maintain building insurance cover and must inform the policy holder that the property will be let.
2. Make sure the property is safe and legally compliant:-
• Gas Appliances:
You will need to ensure you have a valid Gas Safety Certificate, which must be issued to the tenants before they move in and on an annual basis thereafter. A Corgi registered plumber must be contracted to carry out the safety check. The boiler and gas appliances should also be serviced regularly to ensure they remain safe.
• Electrical Equipment:
All electrical systems and appliance must also be safe. The only way to ensure this is to have a full safety check of the system and fittings. An annual Portable Appliance Test (PAT) is also recommended for all furnished properties. The tests and any electrical maintenance work must be carried out by a qualified electrician. • Furniture:
All soft furnishings, such as sofas and beds, in rental property must comply with the Fire and Furnishing Safety Regulations.
• Smoke & Carbon Monoxide Alarms:
All properties built after X must have a smoke alarms fitted. It is highly recommended that any rental property should have at least one alarm on each floor regardless of age. A Carbon Monoxide alarm should also be considered.
• Energy Performance Certificate (EPC):-
Since October 2008, all properties advertised to let, must have an EPC. An EPC can be issued by a Domestic Energy Assessor and the certificate lasts for 10 years. A copy should be given to any one considering renting the property.
3. Presentation, Presentation, Presentation:-
There is usually a large choice of properties for prospective tenants and good presentation will give your property the edge over the competition as well as helping to achieve the best rental price.
• Clean and tidy:
Tenants will be more inclined to keep the property in good condition if it was in that condition when they moved in. It is also easier to record and prove the condition of the property if it is perfect at the start.
• Décor:
Do not be afraid to use some colour, there are hundreds of bland magnolia walls in properties these days!...but avoid a lot of "loud" or dark colours on walls. A slightly darker carpet will show less marks than a very light one. Consider laminate in the walkways (unless in a flat!) and lino for Kitchens and bathrooms.
• Does everything work?:-
To avoid problems once the tenant moves in, check heating and water systems work and all appliances are in good working order. It helps to leave a set of instructions and appliance manuals for these items, even if they are hand written.
4. Furnished or unfurnished?
Furnished properties command a slightly higher premium than unfurnished but the main advantage is that there are usually less furnished properties available.
Unfurnished properties are normally supplied with the Kitchen white goods.
If you decide to furnish the property, consider:
• Furnish in keeping with the period of the property. • Good quality, hard wearing, easy to clean furniture. • Check it is fire and safety compliant. • Expect slightly more wear and tear than in an unfurnished property. • Electrical items are the main things to go wrong (and need testing annually), therefore avoid supplying unless going for maximum rental value.
5. Rental guarantee and legal expenses insurance
With the current economic climate meaning more people are getting into financial difficulty, it is worth considering some insurance to protect you from the unexpected. Although tenants are normally credit and referenced checked, these checks are a snap shot in time and there is no way of knowing if your tenant will be made redundant or get divorced and suddenly stop paying the rent.
6. …and finally - employ a good Letting Agent:
Look for:
• A professional agent (member of NALS, ARLA, OEA). • Competitive fees - look out for those hidden extra charges! • Proactive approach and extensive internet marketing.
Steve is Director of Martin Property Management - a letting agency based in Kenilworth, Warwickshire.
Contact at: www.martinproperty.co.uk