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​​Landlord Energy Responsibility Guide


As a landlord, you have a long list of legal obligations to make homes suitable for your tenants. With an endless list of jobs, it is important to make sure that you can quickly tick off these obligations without spending too much time and money on them. 

Ensuring all gas and electrical equipment is properly installed and certified is one of the most important obligations - but also determining how your energy bills are paid. 

What Am I Responsible For? 

As a landlord, you must ensure the property is always supplied with heating and hot water. You are also required to ensure that all appliances included in the agreement have has the necessary safety checks with an energy performance certificate. 

Any appliance that breaks or issues with the property must be repaired or replaced within a reasonable time. The time depends on the issue. The only exception is when the tenant has purposely caused damage to any part of the property. 

Here are some of the most important obligations: 

  • Gas Safety Checks - these must be carried out every 12-months by law to ensure all appliances are safe. Inspections must be carried out by a Gas Safe Engineer who will issue a gas safety certificate. 
  • Electricity Safety - a new law introduced in 2021 that all rented properties must have an Electrical Installation Condition Report (EICR) carried out every five years.

Energy Performance Certificate (EPC) 

All privately rented homes in the UK will need to have an EPC. This grades the home on its energy efficiency on a system from A to G. An EPC must be carried out by an accredited assessor will cost you around £60 and must be presented to the tenant free of charge. 

Your property’s EPC rating must be at least E. Anything below will need to have the recommended works carried out to a cost up to £3,500 (incl VAT). The Government plan to increase the minimum energy efficiency standards to grade C by 2030. 

What If My Agreement Includes Energy Bills? 

An ongoing energy crisis means that is never been more important to ensure you're getting the best deal on domestic energy, especially if the lease you offered includes all utilities. 

If your tenant has signed a long-term agreement, it is important to ensure you're on the cheapest energy tariff available to maximise rental income. 

With the energy crises reaching exponential prices in 2022, it is very difficult to secure an energy deal that doesn't eat into your income. However, there are ways to introduce energy efficiency improvements that could help reduce energy bill spending without compromising the comfort of your tenants. 

Whilst you have an obligation to meet certain energy efficiency standards, here are some easy energy efficiency measures you can introduce: 

Install Smart Thermostat 

This is only beneficial if you have included utility bills within the rental payments. Whilst the controls will be in the hands of your tenants, supplying them with a guide on how to efficiently heat their home can help save money on the annual energy bills. 

Whilst smart thermostats claim large attractive figures on their potential savings, these headline figures should be taken with a 'pinch of salt. However, there are savings to be made and they certainly do improve energy efficiency with a relatively low upfront cost. 

  • Google Nest Thermostat - claim that UK users save 8.4% and 16.5% a year. 
  • Tado - claim savings up to 31% a year. 
  • Hive Active Heating Thermostat - claims savings up to £110 a year. 

Improve Insulation 

You're going to have installed insulation and got an energy performance certificate signed off before renting out your property. However, it may be worth revisiting. Simply adding extra layers of insulation to the loft space can help keep heat circulating within the house and become much more energy-efficient. 

Even if you're not covering the energy bills as a part of your rental agreement, making energy efficiency improvements can help your tenants save money and less likely to go into rent arrears as fuel poverty increases rapidly in the UK. 

Upgrade Boiler 

When was the last time you upgraded the property’s boiler? Whilst you may have made the relevant energy efficiency improvements outlined in the energy efficiency improvements before putting your property on the market; there maybe money being lost through an inefficient boiler. 

Switching Energy Supplier as a Landlord

Managing the energy bills gives the flexibility to switch landlord energy suppliers to the best value gas and electricity tariffs available. This also applies if you are renting out a commercial property, you can switch business energy if you are a landlord that is responsible for paying the bills. We also recommend you compare other business utilities to ensure you are not overpaying. You can compare energy suppliers here.

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