How energy efficient is your rental property? A property that is energy efficient will be more comfortable for your tenants and will help them save money on their bills. But there’s another reason it should be efficient: The Domestic Minimum Energy Efficiency Standard (MEES) Regulations.
An important deadline is fast approaching regarding the efficiency rating of your property. Here’s why you may need to act soon.
The MEES regulations set the minimum level of energy efficiency that your rental property must have if you want to let it out to tenants.
The regulations apply to domestic private properties that are rented to tenants. You can find out if your property needs to meet the regulations by visiting the Gov.uk page on the topic.
Essentially, if you are letting out a property that is required to have an Energy Performance Certificate (EPC), you must comply with the legislation.
Under the MEES regulations, your property must have a rating of at least E. If your current rating is F or G, you will need to make improvements if you want to continue letting it.
When Do You Need to Take Action?
The deadline for most properties to meet the MEES regulations is April 1st 2020. If you are currently letting a property, you need to have a rating of E or higher to continue letting it out after this date.
However, if your property is currently empty, you do not need to meet the deadline if you have no plans to let it. But if you decide to let it out again, you will need to improve the rating.
What You Can Do to Improve Your Property
There are lots of measures you can take to improve the energy efficiency of your property. These could include:
- Draught proofing
- Low-energy lighting
- Roof insulation
- Wall insulation ( internal or external)
- Floor insulation
How Much Will You Need to Spend?
There will inevitably be some costs involved in making the improvements. However, you will never have to spend more than £3,500 including VAT to make the changes to improve your property’s energy efficiency.
If you cannot make the improvements for this amount, make all the improvements that you can up to the amount, and then you can register an exemption. See the link above for more information on exemptions.
You may even be able to get third-party funding, such as local authority grants, to help make the improvements. Or you might consider a mix of third-party funding and self-funding.
Improve Your Rental Property
If your property has a rating of E or higher, you don’t need to do anything and you can continue to let it as normal. But if it has a rating of F or G, make sure you act fast if you want to keep letting your property legally, otherwise you could find that you are unable to let it out at all.