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Energy Performance Certificates for Rental Properties: A Challenging Obligation

REAL ESTATEEnergy Performance Certificates for Rental Properties: A Challenging Obligation

Tenants should receive energy performance certificates when signing rental agreements. However, the implementation of this obligation remains problematic.

Discussions about energy efficiency are far more prevalent today than three years ago, fueled not only by the high costs of district heating, coal, and gas. It’s likely that over the next three years, energy-related issues in buildings will become even more emphasized. By 2027 or 2028, the new Emission Trading System 2 (ETS2) for buildings and transport is expected to take effect, driving up the costs of coal and gas. Residents of buildings heated by district heating plants should prepare for potential cost increases as companies may pass on decarbonization expenses. These factors underscore the importance of energy performance certificates for tenants, though many still do not receive them.

Key Points of the Article:

  1. The law has tightened regulations requiring sellers to provide energy certificates for residential properties, but similar changes have not extended to tenants.
  2. The quality of mass-issued online energy certificates remains a concern, though improvements are anticipated soon.
  3. Future changes are likely to mandate landlords to provide tenants with detailed energy efficiency information about properties.

Below is a more detailed exploration of this increasingly relevant topic, especially given rising heating costs.

Tenants Cannot Waive Their Right to an Energy Certificate

Significant changes regarding energy certificates for sold properties were introduced by the October 7, 2022 Act amending the Energy Performance of Buildings Act and the Construction Law (Dz.U. 2022 poz. 2206). This legislation significantly strengthened the rules for transferring energy certificates when selling residential properties.

“Under the new rules, notaries must record the transfer of an energy performance certificate in sales agreements or inform sellers of potential fines for failing to provide the document,” explains Magdalena Markiewicz, a real estate market expert.

However, changes to regulations in April 2023 concerning energy certificates for rental properties were less extensive. The law affirmed the obligation to prepare energy certificates for rented buildings or parts of buildings. “At the same time, tenants lost the right to demand energy certificates if not provided at the time of signing the lease, as well as the ability to commission an energy analysis at the landlord’s expense in case of delays,” Markiewicz adds.

A noteworthy addition in April 2023 was a clause stating tenants cannot waive their right to receive a copy of the energy performance certificate when signing a lease. “Unfortunately, many tenants are unaware of this right, making it impossible for them to consciously waive it,” notes Markiewicz.

Future Changes Likely for Rental Regulations

Enforcing the requirement to provide energy certificates in rental agreements remains challenging. It’s unrealistic to mandate notarial agreements for leases solely to ensure compliance with energy certificate rules. “However, it seems likely that future regulations will align with EU trends, requiring landlords to disclose energy performance parameters to tenants,” says Markiewicz.

The government plans to introduce letter-grade energy classifications for residential buildings (ranging from A+ to G) by 2026. This could significantly impact the property market, including rentals. “Such classifications will be easier for buyers and tenants to interpret compared to numerical values of annual primary energy demand,” Markiewicz explains.

Certificates Set to Become More Reliable

Changes to the preparation of energy performance certificates are also expected. This follows media reports highlighting issues with quickly obtaining online certificates without thorough property assessments. Importantly, a draft regulation introducing building energy classes requires experts to conduct on-site or remote visual inspections when preparing certificates.

Although progress on the new regulation has been slow, “addressing abuse is essential to create a system where tenants truly benefit from knowing the energy class of their rental. This isn’t about mechanically fulfilling yet another formal requirement but about providing meaningful and actionable information,” concludes Markiewicz.


Author: Magdalena Markiewicz, Real Estate Market Expert
Source: Manager Plus

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