Discover whether you could be saving on what you pay for your property management gas and electricity. See the best deals from UK suppliers with Business Energy Comparison.
Energy prices are higher than they have ever been in the UK, making it harder for many businesses and residents to stay afloat. There is no end in sight for these rising energy prices, so businesses and consumers are having to make other plans due to this energy crisis.
Property managers and the residents that live in their properties are just some of the parties that are feeling the pinch. Thankfully, there are means and ways of reducing the energy costs of your business. You will find that some energy suppliers offer better prices than others, so if you think you’re being overcharged, you should shop around.
Or, you could give Business Energy Comparison a try. We can provide you with free quotes from the top energy suppliers in the UK, and if we can’t beat the prices of your current energy bills we’ll give you £1,000.
So, if you want to find out how to save money on your energy costs with your property management business, read on!
Energy costs for property management businesses are due to increase soon. This is because the Energy Bill Relief Scheme that came into effect on 1 October 2022 is ending by 31 March 2023.
The scheme set an energy price cap, that capped electricity at £211 per MWh, and gas at £75 per MWh for businesses. The Energy Price Guarantee also made it so that the average household in the UK would only need to spend around £2,500 per year for energy during the six-month period that the scheme lasted.
Unfortunately, at the end of March, the energy price cap will increase to £345 per MWh for electricity and £91 per MWh for gas for businesses. This Energy Price Guarantee change will also apply to residents who will now be spending around £3,500 for the 12 months following the end of the scheme.
Thankfully, this cap still protects residents and businesses from much more expensive wholesale prices. However, this is a notable price increase.
These are important factors for landlords to know, as they need to know how much to charge their tenants for their energy bills.
The Energy Bill Support Scheme is another scheme that applies to domestic energy users. It provided them with a £400 discount on energy bills. However, if these domestic consumers rent from a landlord and don’t pay for energy directly, then it is up to the landlord to distribute these discounts.
If energy bills are included in rent and you have not increased rent alongside the rising energy costs, then you are able to keep the entirety of the £400. If your tenants pay and manage their own energy bills, then you won’t need to do anything, as your tenants will already be receiving the discount.
If the cost of energy is included in the rental price, and you increased rent for your tenants to accommodate this, then you will need to apply this discount to your tenants. If you increased rent by less than £400 because of energy prices, then you only need to pay them the difference of the discount.
It is illegal for you to charge your tenants more than what you are paying for their energy usage.
Now that the Energy Price Guarantee is set to increase, it is time to find out if you and your tenants will be able to save on energy costs. First, you should determine how much your energy supplier is charging you, and compare it with similar businesses to see if you are paying too much.
Keeping an entire block of flats heated and powered uses a lot of energy. This is why landlords should always see if they can get better gas and electricity prices.
Some energy suppliers offer much better prices than others, and you may even find prices that are lower than the price cap. This is why you should always make sure that you are not being overcharged for your business utilities, and if you are, you should try and find a new supplier. This will help shield both you and your tenants from energy price increases.
There are many suppliers in the UK, so it will be difficult for you to compare prices with all of them to find the best deal. This is because you will need to get individual quotes from each supplier based on your location and energy usage.
A better idea would be to go through Business Energy Comparison. We have a skilled team of energy brokers and consultants that will be able to provide you with a list of free quotes that will be better than your current deal. If we can’t beat your renewal quote, then we will give you £1,000.
While there is still an energy price cap at the moment, it is your duty as a landlord to provide your tenants with as much financial support as possible.
This doesn’t mean you should provide your tenants with money when they are low on finances. However, it does mean you should provide your tenants with the lowest energy prices you possibly can.
One of the best ways to reduce the amount you pay for energy, without reducing your energy usage is by going green. While this will cost more in the short term, both you and your tenants will benefit from it in the long run.
Renewable energy can give your business the power to not rely on the national grid for any energy at all. However, in most cases, renewable energy solutions like this can be very expensive. In most cases, it will be best to incorporate a renewable energy solution that will merely reduce your reliance on the grid.
If you own a large property management business, you should consider a small solar PV system or a solar thermal system. Solar thermal systems are cheaper than solar PV systems, as their only function is to heat water and provide central heating.
Your gas or electricity bill will likely be very high in the winter due to your tenants needing to keep their homes or offices warm. So, if you want to reduce this you can install solar thermal systems on the roofs of your rental properties. They don’t take up much space and can reduce the amount of energy you use in the winter significantly.
Alternatively, you could install solar PV systems without batteries to save costs. These systems will power your rental properties during the day, and will, therefore save you a lot of money on energy. Solar batteries are expensive but are great if you can afford them, as they can allow you to go off the grid entirely.
If you have a large solar PV system with lots of batteries and solar panels, then you can even sell power back to the grid if you produce more than you need.
If you want to reduce the amount of energy your tenants consume at your rental properties, then you can’t just stop when you find a better supplier. It is also important to reduce the amount of energy your business consumes as a whole. This will reduce the amount you spend on energy, and take strain off of the national grid.
It is incredibly important to teach your tenants how to use energy sparingly during this energy crisis. If they pay you for their energy, then you should explain that the less energy they use, the less they will need to pay for rent every month.
Some of the ways you and your tenants can reduce your energy consumption are:
Ultimately, it is important that your tenants know that by using less energy, they will be saving money. It is also important for you as a landlord to make good on promises about cheaper rent, if your tenants use less energy.
While you might not think so, lights use a lot of energy, and older incandescent lights use even more energy. You’d be surprised about how much money you can save by replacing old light bulbs with more energy-efficient light bulbs.
Many older developments still use incandescent light bulbs, so it would be a good idea for you to replace these bulbs with either compact fluorescent light (CFL) bulbs or LED light bulbs.
CFL light bulbs use between 70 and 80% less energy than traditional light bulbs. LED light bulbs are even more efficient and can last for up to 100,000 hours.
If you install a smart meter, you’ll be giving your energy provider more accurate data relating to how much energy you use. This will allow your supplier to charge you more accurately for your usage.
Depending on the type of rental property you have, smart meters may also be able to tell you, which of your tenants are using the most energy. You can then speak with these tenants, ask them why their usage is so high, and find ways to help them reduce it.
When it is cold your tenants will want to use central heating or other heaters to keep themselves warm. These both use a lot of energy, but you cannot prevent your tenants from doing this, as it is unethical and impractical.
What you can do is install some better insulation. This will make any heating solution your tenants use significantly more effective.
Insulation can last for years, and increase your property value, so it is definitely something to consider.
Older conventional boilers are far less efficient than system and combi boilers. Unfortunately, if you own a block of flats, one combi boiler will not be sufficient. It will likely be better to install a system boiler that operates on a timer and a thermostat to save electricity.
Older air conditioners also use more energy and are less efficient at cooling down a home. While new energy-efficient air conditioners cost more, they will save you money in the long run by using less energy.
An energy audit can help you determine what you can do to reduce the amount of energy you use. You can contact an energy auditor who will come to your rental properties and determine what your tenants can do to reduce their usage.
Regardless of whether your property management business is small or large, we can find you an energy supplier that will charge you less than what you are currently paying. And, if we can’t we’ll give you £1,000 for your troubles.
So, don’t wait, get a free quote from Business Energy Comparison today.
Yes, ever since the war began between Russia and Ukraine the UK has been in an energy crisis. Part of the reason for this is that Russia is no longer selling gas to the UK, which means there isn’t as much gas supply.
As a landlord, you are not allowed to charge more than what you have paid for gas and electricity. This practice is not only highly unethical but also illegal.
Business Energy Comparison
Corby Innovation Hub,
Bangrave Road
Corby, NN17 1NN
0800 007 4001
Trading name of Utility Bidder
