Tenants can lose tens of thousands due to energy-inefficient flats

18 October 2023

The energy label has gradually become a standard when buying and selling property, but tenants often do not consider it when renting. The landlord is legally obliged to present it or, in extreme cases, to replace it with at least the energy bills for the past 3 years. A large number of rented flats are still in energy class G, i.e. extremely uneconomical. Attorney Pavel Strnad of the Polverini Strnad law firm warns that renting an energy-inefficient property can mean tens of thousands more costs for the tenant annually, which should be taken into account when deciding on the amount of rent he is willing to pay. In addition, even a slight increase in energy prices can cause tenants to run into payment problems, which in turn can also have an impact on landlords.
“Tenants should be wary of the energy efficiency class of their potential new home when looking for accommodation. They often go for seemingly lower rents in less efficient apartments. However, this may not be advantageous to them and they should do the maths first. Lower rents may not be low enough to offset higher energy bills. The rent may be a thousand crowns lower, while the fees will be many times higher than in a comparable property with a lower energy performance class. It is also a good idea to check with the landlord what tariff they have agreed with the energy supplier. This also plays a big role in the final bill,” says attorney Pavel Strnad of Polverini Strnad.

The difference between the energy costs of a medium-sized apartment with energy efficiency class B and an equally large apartment with energy efficiency class G can be up to tens of thousands per year. This can put many tenants in financial trouble to the point of being unable to pay, which also puts landlords at risk.

“Landlords should be wary too, as an extremely uneconomic building can be a problem for more than just tenants. In fact, due to high energy costs, they can easily get into payment problems, in extreme cases even insolvency. And evicting a non-paying tenant can be a very lengthy and costly process, lasting for years, during which the landlord will have no income from the property while having to continue to pay expenses. Landlords can therefore be advised to set monthly utility deposits as close as possible to the actual utility costs, otherwise both parties, the tenant and subsequently the landlord, may be surprised when the bill is settled,” concludes Pavel Strnad, attorney at law at Polverini Strnad.

Example banner for displaying an ad. It can be higher.