Energy Certificates, Not all bad News

[Farol]

The fees may be high but market pressure will probably force a reduction in fees. I don't really see a difference between this and other disbursements that you incur when you sell a property. At the end of the day the seller is likely to pass the price on to the buyer by raising the selling price (not the asking price!).

[analogman]

We are told, by our management company, that we have to have this certificate to legally advertise if we rent out the property. We are under pressure to go ahead with this now as it became a legal requirement from 1st December 2013. I have seen no other reference on this website or any other that this is required for rental advertising. Has anyone else been required to do this? Here is the content of this email:

please find the following prices including 23% VAT for the energy certificate of your property:

T1 Euro 166,05
T2 Euro 196,80
Villas < 150m2 Euro 270,35
Villas > 150m2 Euro 282,90

Please be so kind to inform us as quickly as possible if we can go ahead with this. Please remember that you must have this certificate to legally advertise and rent your property.

[widge]

I thought it only applied to property for sale not rent.

[analogman]

So did I widge, so I called our management company and they said "initially it was only sales, but it has now been extended to rental advertising as well". It's for that reason I was expecting an explosive response but nothing as yet. Perhaps it has not been long enough or people have better things to do at the moment. I would really like to know if others have been informed of the same. I have full trust in our management company and maybe people should ask theirs to check the small print in the new legislation.

[widge]

I fear you may well be right.

[cereza]

I sold my villa in 2012 but when I did own it I was under the impression that i would need a license to rent it out and that the license application process included having an energy certificate. Any bona fide letting agent would only rent properties that had a license which would therefore entail an energy certificate being in place before the agents even started to advertise.
In the current climate analogman, I think your agents are probably quiet right.

[analogman]

No cereza it's nothing to do with the letting licence which we already have for a couple of years. This is new and in addition to the requirement for a letting license!

[widge]

Any bona fide letting agent would only rent properties that had a license which would therefore entail an energy certificate being in place before the agents even started to advertise.

I'm afraid that this is just not true. All letting agents, bona fide or otherwise, are renting out unlicensed, illegal villas for profit. The worst bit is that the client's who rent them assume (wrongly) that they are legal & unwittingly pay a premium price for an illegal property. Clients who book via owners direct etc. on the net pay less and may not expect the same standards. In any event client's who rent a holiday home probably know nothing about the regulations they assume that the agents & owners are responsible & legal - Big Mistake !

[Polli62]

I was of the assumption and have read elsewhere that an energy certificate is now mandatory if you want to sell your property & also if you are renting out on a long term basis but not mandatory on short term (holiday lets) were only AL license is needed. Personally can't see why you should need it for long term but not for holiday lets, it should be a level playing field across the board, needing one for all aspects . Personally the fees for this certificate are extortionate , nothing but another money grabbing exercise.

[EMM]

I was sent details yesterday of more properties that agents have had to take off their books because the owners do not want to pay for an energy rating .
Is it a tax, Yes but one you cannot avoid.

[widge]

I have been informed by a reliable source that all holiday lets must have an energy certificate in addition to the AL Licence. Regrettably this will not force unscrupulous renters & agents to withdraw illegal properties, just frustrate & anger the responsible owners who comply!

[sunman]

I have been informed by a reliable source that all holiday lets must have an energy certificate in addition to the AL Licence. Regrettably this will not force unscrupulous renters & agents to withdraw illegal properties, just frustrate & anger the responsible owners who comply!

I don't quite get why it would anger or frustrate you Widge? you can go home after a nice dinner & Maciera & dream of waves lapping the beach, non compliers lay with one eye open & the thought that the next time the bell rings it might be the bespectacled men in navy blue suits with their clipboard.

since returning to the UK we've had quite a lot of work done on our house, we're 50-50 with builders who will only work with cash in hand & nice blokes that will only do receipted work & charge the correct VAT etc., (and before anyone doffs the judge's wig we could only get people to lay our patio with cash, couldn't find a single offer of the legit route without waiting 3 months), the business of dodging tax is universal as you well know, do what you do to let yourself sleep, the rest ain't worth worrying about.

[widge]

I have been informed by a reliable source that all holiday lets must have an energy certificate in addition to the AL Licence. Regrettably this will not force unscrupulous renters & agents to withdraw illegal properties, just frustrate & anger the responsible owners who comply!

I don't quite get why it would anger or frustrate you Widge?

Supply & demand. If only legal villas were available to rent then our rental yield would rise & our order book would be full. As it is too many cheap illegal properties drag the market down & that's what frustrates me. It is always the cheap villas & the cheap air fares that sell first that's the way the market works!

[lagermeister]

My tennant wants to buy my property from me. This is a private sale with NO agents involved.
Do I still need an energy certificate if he is already living there ?

[cereza]

My tennant wants to buy my property from me. This is a private sale with NO agents involved.
Do I still need an energy certificate if he is already living there ?

I think you do as it forms part of the completion process and has to be seen by the notary at the time of the Deed signing.

A waste of money IMO but no way around it