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7 reasons to make your rental property more sustainable

Making your rental property more sustainable is no longer just an option; it’s a smart investment that benefits both landlords and tenants. In addition to environmental reasons, many immediate and long-term economic advantages can be gained from embracing sustainability. 

We had a chat with Konstantina Tsapakidou, Founding Director of Studio FiftyOne Architects, to dive deeper into the advantages of sustainability in rental properties. 

Konstantina Tsapakidou

Konstantina, an Architect and Passive House Designer, is the founder of Studio FiftyOne—an architectural practice emphasizing sustainability through Passive House Design and Circular Economy principles. Engaged in various sustainability networks like ACAN and LETI, she also guides an undergraduate design studio at Kingston School of Art, London.

Whether you’re a seasoned landlord or just entering the realm of property management, here are seven compelling reasons why investing in sustainability is a savvy choice.

Boost your EPC rating 

Enhancing your rental property’s sustainability isn’t cosmetic; it’s an investment in performance. Adopting eco-friendly practices boosts your Energy Performance Certificate (EPC) rating – a measure of efficiency, comfort, and value in the eyes of potential tenants.

A sustainable property offers a dual benefit to tenants: Improved internal comfort levels, lower energy bills and improved air quality. This creates an appealing living space, leading to happier, longer-staying tenants and minimised vacancies. An improved EPC rating, happy tenants, and extended leases add up to a significant financial advantage.

Get in touch to learn how Letio can help you maximise the return on your property investment

Future-proof your property investment 

Meeting the 2050 carbon targets isn’t just a suggestion; it’s a legal obligation. Governments worldwide are tightening regulations to combat climate change, making sustainability a non-negotiable aspect of property ownership. By proactively embracing sustainable practices, you’re positioning your rental property ahead of the curve, ensuring you easily meet these future regulatory demands.

Sustainable homes reduce carbon emissions. Domestic heating is responsible for 14% of the UK’s carbon emissions and about 80% of our homes still depend on gas.

Konstantina Tsapakidou
Founding Director of Studio FiftyOne Architects

The regulatory landscape is dynamic, subject to change at any moment. As a forward-thinking landlord, embracing sustainability isn’t just about compliance; it’s about safeguarding your investment against future uncertainties. Energy-efficient technologies, green building materials, and renewable energy sources create a property adaptable to evolving regulations and market demands.

Consider sustainability as an investment not just in your property but in its future value. The market will continue to gravitate towards eco-friendly properties, and your forward-thinking approach will undoubtedly pay dividends in terms of property value and tenant demand.

Increase your property value & rental income

Being a landlord is about more than just the immediate gains. A sustainable property carries a value proposition that transcends the present, extending into the future. One aspect of this is the increased energy efficiency, bolstered by green technologies and designs, which leads to lower utility costs for your tenants. This financial relief translates into tenant satisfaction and long-term lease agreements – all factors that amplify your rental income.

An investment in sustainability is a strategic decision that pays dividends over time. The enhanced energy efficiency, superior quality, and reduced operational costs associated with sustainable properties translate to a higher market value. And with the power to attract tenants, elevate rental rates, and enhance your property’s worth, embracing sustainability is a transformative investment in your financial future.

Get in touch to learn how Letio can help you maximise the return on your property investment

4. Reduce maintenance costs

The ambition to reduce maintenance costs is shared by landlords worldwide. However, the solution to this challenge lies not just in routine repairs but in the very fabric and construction of the properties themselves. This is where sustainable properties emerge as a game-changer.

Sustainable properties are built to a higher standard. With a focus on durable materials and energy-efficient systems, these properties are a testament to the synergy between environmental responsibility and long-term financial gain.

“A sustainable rental property increases the value of the asset, benefiting the landlord from a higher rental income, as it is more comfortable and energy efficient. Sustainable buildings are also more durable, reducing the maintenance cost.” 

Konstantina Tsapakidou
Founding Director of Studio FiftyOne Architects

The result? Fewer maintenance issues translate into significant repair cost reductions over the years. It’s more than just avoiding the headaches of constant fixes – it’s a strategic approach to securing your investment’s value.

Empower your tenants to live sustainably

As a landlord, your influence extends beyond the walls of your rental property. By taking proactive steps to guide your tenants toward sustainable living, you’re enhancing their quality of life and contributing to a greener, more eco-friendly future for everyone. One effective way to do this is by providing valuable resources and guidance that help your tenants adopt eco-conscious practices.

As a landlord, you can guide your tenants by highlighting the baseline temperature for comfort in the winter, around 20°C.

Konstantina Tsapakidou
Founding Director of Studio FiftyOne Architects

For example, you can offer your tenants ventilation guides beyond the basics, helping them prevent mould growth while maintaining optimal air quality. Another crucial aspect of sustainable living is maintaining a comfortable indoor temperature without unnecessary energy waste. Communicating a baseline temperature guideline of around 20°C for the winter months promotes energy efficiency while ensuring your tenants’ comfort.

Landlords and tenants as partners in change

On the journey towards sustainability, collaboration between landlords and tenants is essential. With a strong partnership, both parties can contribute significantly to creating a greener and more environmentally responsible living space.

Start by establishing open lines of communication, and encourage tenants to promptly report leaks, no matter how minor, to prevent wasteful water usage. This proactive approach helps safeguard one of our planet’s most precious resources and demonstrates your commitment to providing a sustainable living environment.

When the time for maintenance arrives, view this as an opportunity to implement a phased retrofit that gradually elevates energy and water efficiency. Whether it’s upgrading insulation, installing energy-efficient windows, or transitioning to renewable energy sources, these will improve both sustainability – and profitability.

A greener future for all: Beyond financial incentives

Beyond the immediate financial benefits, it’s crucial to remember that embracing sustainable homes has far-reaching implications for our planet’s future. Domestic heating significantly contributes to carbon emissions in the United Kingdom, accounting for 14% of the country’s total. 

This statistic isn’t just a number; it’s a call to action, urging us all to take meaningful steps toward a greener, more sustainable future. By aligning your property with greener values, you’re not just securing a brighter future for your investment – you’re contributing to a healthier, more balanced, and more sustainable world for generations to come.

How Letio can help

Letio is on a mission to make renting better – for everyone. We believe that doing good is good business. Sustainability, transparency and accountability are at the heart of everything we do, as we support landlords like yourself on every step of the letting journey.

Get in touch to learn how Letio can help you with your property management needs

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For newbuild properties:

  • Assess energy performance
  • Evaluate water efficiency
  • Scrutinise building materials
  • Verify certifications like EPC, Passivhaus, and BREEAM

For existing buildings:

  • Explore retrofit possibilities
  • Enhance thermal performance
  • Address hot water demand
  • Consider replacing fossil fuels with renewable energy

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