Commercial property landlord energy advice

Effective energy management is essential for commercial landlords to avoid overpaying and ensure properties are compliant with regulations.  

Whether you’re exploring landlord supply electricity tariffs, or you need to understand your responsibilities as a commercial landlord better - or even if you're just trying to find the best energy supplier - this guide covers everything you need to know. 

What responsibilities does a commercial landlord have? 

As a commercial landlord, you have several responsibilities to ensure that your properties are safe, efficient, and suitable for tenants. While lease agreements often outline specific roles, understanding the broader responsibilities is crucial. 

Key areas of responsibility: 

• Electricity, gas, and water supply 
  Ensuring the safety and functionality of electrical wiring, gas piping, and water systems is typically the landlord's responsibility. Before leasing, ensure these utilities are compliant and ready for tenant use. If appliances like boilers or cookers are included in the lease, their maintenance may also fall under your purview unless specified otherwise. 
• Fire safety 
  Depending on the lease agreement, fire safety responsibilities may rest with the landlord or tenant. In cases where landlords are responsible, this includes maintaining fire alarms, emergency lighting, and clear evacuation routes. 
• Fixtures and fittings 
  Any fixtures or fittings provided by the landlord must meet safety standards and be tested accordingly. Once tenants add their own installations, maintaining these becomes their responsibility. 
• Asbestos management 
  Landlords must check for asbestos and conduct a risk assessment before leasing a property. While asbestos doesn’t always need removal, clear documentation and compliance with regulations are essential. 

Do you need an EPC as a commercial landlord? 

An Energy Performance Certificate (EPC) is mandatory for commercial landlords. This document rates the energy efficiency of a property on a scale from A (most efficient) to G (least efficient). 

Key regulations: 

• From April 1, 2018, properties must have at least an E rating for all new leases and renewals 
• From April 1, 2023, this requirement extended to all leases, regardless of the lease's start date 
• By 2025, properties will need a minimum rating of D, and by 2030, this will rise to C 

If you don’t follow these requirements and display your EPC, you could be liable to a penalty charge. 

You can be fined between £500 and £5,000 based on the ratable value of the building if you don’t make an EPC available to any prospective buyer or tenant. 

As with all governmental penalty charges, you do have the option to appeal if you believe you have been treated unfairly.  

Who is the best energy supplier for landlords? 

Selecting the right landlord energy supplier depends on the size of your property, energy usage, and specific requirements. While there isn’t a single "best" provider, some key factors can help you identify the most suitable tariff: 

Things to consider: 

• Property size and usage: Large properties or multi-tenant buildings have different energy needs compared to smaller single-unit spaces. Assess your energy consumption to identify the right tariff. 
• Specialised landlord supply electricity tariffs: Look for tariffs designed for landlords, which may include features like consolidated billing for multiple properties or flexible options for vacant units. 
• Green energy options: Choosing renewable energy tariffs improves your EPC rating and aligns with government sustainability goals. Green tariffs can be a valuable selling point for eco-conscious tenants. 
• Cost-efficiency: Compare gas and electricity tariffs to ensure you’re not overpaying. Bulk-buying or multi-property contracts often lead to better rates. 

Renting a business property: landlord responsibilities 

When leasing a commercial property, landlords must balance providing a functional space with fulfilling legal and ethical obligations. 

Key landlord responsibilities when renting a business property: 

• Transparent communication: Clearly outline energy-related costs, responsibilities, and arrangements in the lease agreement. This ensures tenants understand their obligations and helps prevent disputes. 
• Energy supply during vacancies: During vacant periods, landlords are responsible for energy costs. Choosing the right tariff ensures affordability during these times. 
• Regular inspections and maintenance: Conduct routine checks on fixtures, fittings, and utilities to ensure they remain compliant and safe for tenants. 

How to compare commercial landlord energy suppliers 

Landlords can save significantly by comparing energy tariffs and consolidating contracts for multiple properties. Services like Bionic, in partnership with MoneySuperMarket, can simplify this process by identifying the best deals for landlord energy supply. 

Steps to compare landlord electricity supply tariffs: 

• Gather key information: Have recent energy bills, Meter Point Administration Number (MPAN), Meter Point Reference Number (MPRN), and contract end dates ready 
• Assess your needs: Determine the energy usage for each property and consider features like renewable energy options or flexible terms for vacant units 
• Use a comparison service: Expert services can quickly analyze your requirements and recommend the most cost-effective contracts 

Call Bionic on 0800 140 4667 or enter your postcode online to get started. 

Tips for improving energy efficiency 

Switching suppliers is just one way to save money. Improving energy efficiency can also lower costs while enhancing the value of your property by helping it meet EPC requirements. 

Here are some ways to make your commercial property more energy-efficient: 

• Upgrade lighting and appliances: Replace old lighting with energy-efficient LEDs and consider upgrading outdated appliances to reduce energy consumption 
• Improve insulation: Proper insulation reduces heating and cooling costs, making your property more energy-efficient and appealing to tenants 
• Install smart meters: Smart meters provide real-time energy usage data, making it easier to monitor consumption and identify inefficiencies 
• Switch to renewable energy: Renewable energy tariffs contribute to higher EPC ratings and align with tenants seeking sustainable business practices 

Check out this guide for more on business energy efficiency.

Effectively managing the energy supply at your commercial property can make a significant difference to your profitability and compliance as a commercial landlord. 

From selecting the best landlord energy supplier to ensuring your building meets the necessary EPC standards, proactive energy management benefits both landlords and tenants. 

Start comparing landlord gas and electricity supply tariffs today to save time and money while ensuring your properties are energy-efficient and ready for tenants. Call 0800 140 4667 for expert advice or enter your postcode online to find the right deal.