Here’s a snippet from The Daily Telegraph‘s article about green landlords.
“Buy-to-let should always be geared to minimise tax payable, so look at the finance you have in place to ensure you are not paying tax on excess income,” Marc Von Grundherr, director of Benham & Reeves Residential Lettings.
The rest of a landlord’s outgoings come from fees like management lettings and renewal. Then, there are professional fees, leasehold costs, safety checks, insurance, and costs from covering any void periods.
Central London estate agent Robert Burwood from Hudsons says, “Unexpected costs such as broken boilers and pest control are major culprits. They can leave landlords out of pocket to the tune of around £1,500 a year.”
A more energy-efficient property benefits the tenant who pays the gas and electricity bills. Having a more efficient boiler or a well-insulated house means less cost. The landlord also gains from the financial uplift that improvements bring to the property. With a happier tenant, with more cash available, it also helps to retain tenancy over longer periods. It may also improve the relationship between tenant and landlord as well as reduce maintenance costs, therefore increasing profit.
As a landlord, John Martindale talks about his portfolio of 20 Bolton properties having a combination of new boilers, cavity wall and loft insulation. “By making my properties energy efficient, I’m improving the building’s performance and also making it more attractive to potential tenants,” he comments.
Mr Martindale received his funding for these improvements under the Energy Company Obligation (ECO), part of the Government’s new Green Deal.
“With more than 4.5 million households privately rented, according to the National Landlords Association, there’s a lot of opportunity for green landlords,” says Dean Murray, managing director of Green Deal Solutions, which installs energy-efficiency measures.
A YouGov poll recently showed that now 58 per cent of landlords are aware of the Green Deal, compared with only 20 per cent of the general public.
“Tenants are also starting to ask more about a property’s EPC”, says Ian Potter, managing director of the Association of Residential Letting Agents. “So it’s prudent for landlords to have a clear picture of the performance of their properties,” he says.