23 June 2023 | Owners of older residential and commercial buildings are currently being asked to do a lot. Some people are turning off in the face of ever new, not always well-developed ideas from politicians in terms of sustainability. Understandable as this reaction may be, owners should address some issues in good time. This can also pay off in cash.
If you own an older heating system, you should think about a future-proof replacement in good time. It is true that the current draft of the so-called Heating Act initially only stipulates that heating systems in new buildings must use at least 65 percent renewable energies from January 2024. However, after the transition period in 2028, existing buildings are also to become the focus of energy policy. Solutions include connection to the district heating system, a heat pump or biomass heating. An energy advisor can give you certainty about what is technically and economically feasible in your house. The good news is that there are subsidy programmes for heating system replacement. And the state also contributes to the costs of the consultation.
If your house does not have a high energy standard, you as a landlord have had to shoulder an extra burden since the beginning of this year. This is because the "Carbon Dioxide Cost Sharing Act" prohibits you from passing on the costs from CO₂ pricing in full to your tenants as you used to. The worse the energy standard of your building, the higher both the total CO₂ costs and the share you have to bear yourself. Only with an efficiency house standard of EH 55 or better, i.e. with emissions of less than twelve kilograms of CO₂ per square metre of living space, will your tenants bear the costs in full. If, on the other hand, your house emits more than 52 kilograms of CO₂ per square metre per year, you will bear 95 percent of the costs. This is expensive, because the price per tonne of CO₂ will rise from 30 euros at present to 55 euros in 2025. It might be worthwhile to offset the costs of better wall and roof insulation and window replacement.
With a solar system on your roof, you make yourself partially independent of rising electricity prices. You can use the green electricity generated for general electricity. Selling it as household electricity for your tenants involves some legal hurdles, but it is feasible. The same applies to feeding surplus quantities into the electricity grid. For smaller quantities, the legal and fiscal hurdles have recently been lowered. Your energy advisor will tell you what is technically possible and economically worthwhile on your roof.
Even if your house is fully rented and the income is right: It doesn't have to stay that way. In view of the steep rise in ancillary costs, tenants are paying more and more attention to how high the "second rent" is and, if in doubt, prefer space in a more modern building with a better energy standard. It doesn't even have to be exclusively about money. More and more companies, but also private individuals, would prefer to reside in a building that avoids unnecessary environmental pollution out of ecological conviction. On the other hand, a better energy standard and lower ancillary costs are a good argument for a higher cold rent.
Better energy efficiency and modern ESG features reduce ancillary costs and increase the rental income potential. This has a positive effect on the market value of your home. Sustainability has already become a defining factor that buyers look for, and it will continue to grow in importance in the coming years. If your house is up to date in terms of ESG, higher sales prices are possible, while a lower standard is penalised with discounts. However, sustainability has advantages even if you are not planning to sell at all. When you apply for a loan, your bank will assign a higher loan-to-value ratio to your house and give you better conditions.
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