Helpful Tips Property Management

Call of the Week: Minimum Energy Efficiency Standards

Call of the week

From April 1st 2018, landlords will no longer be able to give a tenancy or renew and existing one for a property with an EPC rating of less than E.

As this date is fast approaching, some landlords are concerned that their properties will not quite reach these minimum standards and have started looking to potential solutions.

This week’s member had a number of properties, three of which were potentially complicated by the new legislation and he was seeking advice on the best way to go about dealing with each of them.

The first tenancy was relatively simple to deal with.  The landlord was about to bring in some new tenants and he was concerned that when the tenancy became a statutory periodic tenancy he would no longer be able to rent out the property to them.

We suggested he look at the RLA’s tenancies instead of using his current one.

As our tenancies continue on as contractual periodic tenancies any tenancy he enters into before April 1st would not be caught by the minimum standards for EPCs until April 1st 2020, giving him plenty of time to plan and cost the improvements.

We also suggested he try our new quiz that helps him choose the right tenancy agreement for his situation.

The second tenancy however was set to turn into a statutory periodic tenancy in May 2018.

Unfortunately, at the point statutory periodic tenancy is created, the landlord would have to have an EPC rating of E or above.  Alternatively they could potentially apply for an exemption on this property.

This was unfortunate because the property was very close to an E rating, but the improvements would have been extremely expensive for very little reward.

The government has recently altered the banding of the EPC categories, with many properties that were F rating moving up to E.

We suggested here that the landlord consider getting a new EPC done under the new banding to take advantage of this change.

Finally, the landlord was concerned about a property that he knew would need improvement works.

Unfortunately, he was struggling with some cash flow issues and was worried about how he would fund the work.  We advised him to apply for funding to help with the improvements.

Grateful we could help him with all his issues, the landlord set off to fix all his issues.

LAT Manager Rupinder Aujla, said “We’re always happy to help our members, especially with planning for upcoming legislation.”

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Landlord Advice Team

Landlord Advice Team

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