Commercial property landlord energy advice
If you own one or more commercial properties, there are a number of things you’ll need to consider to ensure you’re not paying over the odds for energy. First, you’ll need to be aware of your responsibilities to your tenant, but there are other considerations to make, such as, whether you need an Energy Performance Certificate (EPC) and how to find the best energy suppliers for landlords.
This includes finding cheap business energy while on a tariff that will suit your requirements precisely.
What responsibilities does a commercial landlord have?
Commercial property landlords have a range of responsibilities. The lease agreement will dictate what either party are responsible for, however, you still need to be aware of what’s expected from a commercial landlord to ensure nothing is missed. A big part of this is health and safety. Commercial landlords must ensure that their building is viable for use. This includes:
Electricity, Gas & Water – Electrical wiring, water and gas piping is almost always the responsibility of the landlord. Before leasing your property, you’ll need to be sure that these are safe and ready for use. If you provide any gas or electrical appliances as part of the lease, these are also your responsibility, unless dictated otherwise.
Fire Safety – Most often, the fire safety of a building is managed by the tenant. However, some lease agreements do dictate that it is the commercial landlord’s responsibility. This makes it incredibly important to ensure your lease agreement is clear and transparent – allowing all parties to know what they are responsible for.
Fixtures & Fittings – Any fixtures, fittings, or appliances must be deemed safe for use before any agreement is put in place. This includes the relevant testing and certification. However, if your tenant adds in their own fittings or appliances, they are their own responsibility.
Asbestos – You will need to check for asbestos in your building before leasing it out to tenants. However, if you do come across asbestos, it may not be necessary to have it removed. You’ll need to undertake a full risk assessment regardless, ensuring your building is suitable for use.
Do you need an EPC as a commercial landlord?
With the introduction of the Energy Act in 2011, commercial landlords now have a responsibility to ensure their property has an Energy Performance Certificate (EPC). This certificate rates the energy efficiency of the premises in question, with ‘A’ being the highest and ‘G’ the lowest. The Energy Act dictates that all rented properties, whether residential or commercial, must have at least an ‘E’ rating.
From the 1st April 2018, this will apply to all new leases and renewals, including sublets. From the 1st April 2023, this will extend to every lease, regardless of how old they are. And it doesn’t stop there. As part of the government’s commitment to an 80% reduction in CO2 emissions by 2050, the required EPC ratings are set to rise.
By 2025, all rental properties will need at least a ‘D’ rating for their EPC. By 2030, this will increase to a minimum of a ‘C’ rating. It’s recommended to get this in place as soon as possible, as any delay could end up with you being charged for non-compliance.
Who is the best energy supplier for landlords?
As there are different property sizes and, therefore, different energy consumption, it’s not possible to state who is the best energy supplier for landlords. Instead, it’s best to find an energy provider who suits your requirements directly. That’s why using a switching service like MoneySuperMarket can help - we've teamed up with the busienss energy experts at Bionic to help you save time and money when comparing energy deals.
Cheap business electricity tariffs come in a range of forms, as do those for gas. By speaking to one of the energy experts at Bionjc you can work quickly work out which type of contract and supplier best suits your needs.
Give them a call now on 0800 140 4667 or pop your postcode in the box on the right and they'll give you a call back.