A warning to commercial landlords to be efficient about the energy efficiency of their properties

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Ordinarily the beginning of April signifies the end of the tax year and the beginning of the new but this year commercial landlords will have a different issue on their minds.

The Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015/962 come in to play on 1 April 2018 and oblige landlords to ensure that any privately rented property must have a band E or higher revealed by their Energy Performance Certificate.

These regulations apply to both commercial and residential property. Prudent landlords will need to:

a) check any existing EPCs to check whether the minimum standard is met (if your current EPC is out of date you will need to carry out a further EPC)

b) in the event that you intend to let, extend or renew a tenancy of a property after April 2018, energy efficiency improvements may need to be met to bring that property up to the minimum standard.

Do also remember that by 1 April 2020 this will also apply to existing residential tenancies granted before that date that are continuing and on or after 1 April 2023 this will also apply to commercial tenancies.

Our advice is to consider the necessity of any repairs in advance and whether the cost of these can be recovered under the service charge provisions of an existing lease.

Meaby&Co Solicitors LLP can advise you on commercial lettings and service charge. Please contact Nicky Cleightonhills (nc@meaby.co.uk) for more details.

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