"A personal guide to sustainability for landlords."

I’m a landlord of several properties. We all know that property is a great investment. But there are times when you wonder if you’re in the right business. Times, when energy prices go crazy or unexpected damage or theft occurs to one of your properties. New rules and regulations mean an unplanned set of upgrades need to be made to otherwise perfectly functional spaces.

Sometimes property maintenance – and keeping up to date with everything that is supposed to be done – seems like an over-expensive and unnecessary exercise in form-filling. I feel the pain because I happen to favour a certain style of property in my portfolio: the historic character property.

If properly looked after, old, charming, and rarely listed buildings may attract higher rentals. More and more people nowadays love to stay somewhere unique and memorable. But these properties are a pain to maintain! Woodwork needs regular painting, roof tiles need replacing, and gutters require repair. And then there’s the elephant in the room: sustainability. Many older properties do extremely poorly, often being awarded poor scores in their EPCs (Energy Performance Certificates), which in the future may become a real issue if proposed new regulations impose stricter constraints on allowable ratings for rental properties.

Nevertheless, my portfolio of character properties is staying. And I am slowly upgrading all of them to be as future-proof as any modern property. Let me explain why.

Why upgrading is a good idea

• Efficiency:

My properties used to be very inefficient. They wasted energy. They either had electric storage heaters or ancient gas boilers. Some had original single-glazed windows. Most had little or no insulation. But all properties have issues, and all need maintenance regularly, so we simply incorporate our efficiency upgrades into the regular maintenance. We replace boilers, upgrade insulation, replace windows, and improve plumbing. Compared to the costs of regular redecoration, the cost is not half as scary as you might think. (Painters can be crazy expensive!).

If you already have an efficient property, good for you. But regulations are constantly changing and you’ll find in another ten years things will look a bit different. Upgrading efficiency is not something to be surprised about – it’ll be needed for all properties, and it’s likely to be something we naturally update every 5 to 10 years. For us, the great thing is that when we list the properties they become far more attractive to renters because they are cosy, warm and efficient, as well as being unique and filled with character.

• Green energy suppliers:

Wherever possible we ensure our electricity suppliers are from 100% renewable sources. This brings the CO2 footprint as low as we can for the property. Why does this matter? Ask your renters – many organisations are actively measuring carbon footprints and will preferentially choose lower CO2 options. This is a win-win.

Green tariffs are currently some of the cheapest anyway, so it’s cheap energy. Your renters will prefer your property because you made this simple switch.

• Energy consumption:

This is assisted by the first point. An efficient property uses less energy. However, it is also quite possible for an inefficient property to use little energy – a basic rental in a beachside resort, which has no appliances, no air conditioning, just some doors and windows that open, could be very low in energy consumption! Some people get a little confused with all the talk of “net zero” and think that all you need to do is use a green energy supplier.

No emissions for energy means no CO2 right? Wrong. Even when electricity is supplied by a green source that does not reflect gas usage an apartment might use a community scheme with a central gas boiler, for example. That’s why we need to think about this independently: just how much energy does the property tend to consume? In my properties, we have reduced energy by having smart heating controllers, low-power lighting, and low-power appliances. For some easy savings, set a lower max temperature on heating and hot water thermostats.

If you’re prepared to go all-out, then think about heat pumps, solar heating or photovoltaic cells for power. (They’re on our to-do lists for the future when costs come down.) If you offer services such as laundry and cleaning, limit them by requiring guests and renters to specifically request such services while educating them about environmental implications. Make the energy consumption low and you ensure all fuel bills and associated costs are permanently lower. It’s good for the environment, it’s good for the landlord, and renters appreciate your efforts (especially if they pay some of the bills).

• Transport options:

It may be harder to change this, but it has surprising implications. All my properties are in the heart of town – because they are as old as the town. They’re next to facilities such as rail stations, buses, and electric scooter points. Brand new apartments exist but they’re all further out. So my renters love having access to excellent (and sustainable) transport, and I can charge a premium for a great location. Can you improve this aspect for your properties? You can encourage companies that provide electric scooters or rental vehicles to serve your area. Or you could consider providing bike stores or electric charging points in your building. Renters preferentially choose properties with such options.

Final Thoughts

My portfolio is unusual and yours can be the same. Whatever type of properties you own and let out, TheSqua.re is there to assist you. EcoGrade™  specifically focuses on the four features above and provides owners with details of how well their properties perform, with recommendations on how to improve them. Higher EcoGrade scores will mean happier and more numerous renters, plus lower long-term bills for you. Making your properties future-proof is worthwhile, even if you do it one step at a time. Sensible investments always pay back in the long term.