EPC cost recovery for landlords

As a landlord in the UK, one of the key responsibilities you have is to ensure that your property meets certain energy efficiency standards. This is where Energy Performance Certificates (EPCs) come into play. An EPC provides information about a property’s energy efficiency and carbon emissions, giving potential tenants an idea of how much it will cost to heat and power the property.

But as a landlord, you may be wondering about the cost of obtaining an EPC and whether you can recover this cost. In this article, we will explore the ins and outs of EPC cost recovery for landlords and provide some helpful tips to help you navigate this process.

First and foremost, let’s talk about the cost of obtaining an EPC. The price of an EPC can vary depending on the size and location of the property, as well as the provider you choose. On average, the cost of an EPC for a residential property in the UK ranges from £60 to £120. For commercial properties, the cost can be higher, typically ranging from £100 to £300.

Now, let’s discuss whether you can recover the cost of an EPC as a landlord. The short answer is yes, you can. In fact, obtaining an EPC is a legal requirement for landlords in the UK, so it is considered a necessary expense that can be passed on to tenants. However, it is important to note that the cost of the EPC cannot be included in the rent or deposit, as this would be considered a prohibited payment under the Tenant Fees Act 2019.

So how can you recover the cost of an EPC as a landlord? One way to do this is to include the cost of the EPC in the overall cost of renting the property. For example, you could increase the monthly rent slightly to cover the cost of the EPC. Alternatively, you could charge a one-time fee for the EPC at the start of the tenancy.

Another option is to negotiate with your tenants to split the cost of the EPC. This can be a fair and transparent way to recover the cost, especially if you have a good relationship with your tenants. Just be sure to clearly outline the terms of the agreement in the tenancy agreement to avoid any misunderstandings.

It is also worth noting that having a high energy efficiency rating on your EPC can actually save you money in the long run. A more energy-efficient property will have lower energy bills, which can make it more attractive to tenants and potentially command a higher rental income. Additionally, there are government incentives available for landlords who make energy-efficient improvements to their properties, such as the Green Homes Grant scheme.

In conclusion, while obtaining an EPC as a landlord may incur a cost, it is a necessary expense that can be recovered through various means. By including the cost of the EPC in the overall cost of renting the property, negotiating with tenants, or taking advantage of government incentives for energy-efficient improvements, you can ensure that you are compliant with the law and potentially save money in the long run.

At PropCert Ltd, we understand the importance of EPCs and other compliance reports for landlords. We offer a range of certification and compliance services for residential and commercial properties nationwide, including EPCs, Electrical Installation Condition Reports (EICRs), gas safety certificates (CP12), and more. Our team of qualified professionals can help you navigate the process of obtaining these reports and ensure that your property meets all necessary standards. Contact us today to learn more about how we can help you with your property compliance needs.