For several years, the DPE has become an essential element in the real estate sector. A mandatory diagnosis when renting or selling, the DPE now directly influences the amount of rent.
How can a poor DPE decrease the rental value of a property? Why is energy performance becoming a decisive criterion?
Understanding the DPE: a tool at the heart of the rental market
The Energy Performance Diagnosis, more commonly known by the acronym EPD, has been a mandatory document in France since 2006 for any rental or sale.
What is the EPD?
The EPD assesses the energy consumption of a housing unit and its greenhouse gas emission levels. Conducted by a certified diagnostician, it assigns a rating to the property from A (economical housing) to G (thermal sieve). This energy label has become a criterion for comparing real estate properties.
Legal obligations related to the EPD
The EPD must be presented during any real estate transaction. Since the reform in July 2021, it is enforceable: a tenant can therefore take action against a landlord in case of an incorrect EPD.
Current and upcoming prohibitions
Since 2023, the Climate and Resilience Law has established progressive prohibitions:
Since January 2023, housing classified as G+ (consumption exceeding 450 kWh/m²/year) is prohibited for rental.
In 2025, the prohibition extends to all housing classified as G.
In 2028, it will be the turn of housing classified as F.
By 2034, it will be the turn of housing classified as E.
Why does a bad DPE decrease the rent?
The energy rating of a property directly influences tenants' perception of it and, consequently, the price they are willing to pay.
Tenants are increasingly sensitive to energy performance
Today, the majority of tenants carefully check the EPD before signing a lease. A poorly insulated property results in high energy bills: a poor EPD can dissuade potential candidates or force the owner to lower the rent to remain attractive.
Regulatory constraints weigh on rent setting
With the gradual ban on "thermal sieves," a poor EPD can also mean a prohibition on renting in the short or medium term. The owner is then obliged to undertake energy renovation work to maintain the profitability of their property.
Some studies have shown that a property rated A or B can be rented up to 15% more expensive than a similar property rated E or F. Conversely, a poorly rated property will often need to compensate for its lack of energy performance with a lower rent.
Poor energy performance rating: what are the impacts for homeowners and tenants?
A poor Energy Performance Certificate (EPC) not only affects the rental amount, but also has broader consequences on the occupants' budget and the property's value.
Consequences for the landlord
A poorly rated property on the EPC can become difficult to rent, or even unsellable without a significant price reduction. To maintain a reasonable profitability, the landlord often has to accept a lower rent or invest in insulation, heating, or ventilation work.
The impact for the tenant
For the tenant, a poor EPC translates into high energy costs: heating, air conditioning, and hot water represent a significant portion of the monthly budget. For equivalent surface area, a poorly insulated property can cost several hundred euros more per year.
Faced with these additional costs, many tenants prefer to turn to better-rated housing, even if the nominal rent is a little higher. The calculation is now done in "rent + charges": a good EPC has thus become a strong commercial argument.
How to improve a poor energy performance diagnosis (DPE) to preserve your rents?
Fortunately, an EPC that is unfavorable is not a fatality. Solutions exist to improve the energy rating of a property and thus maintain a good rental value.
Conduct a precise energy audit
Before starting any work, it is recommended to conduct an energy audit. This detailed assessment identifies the main sources of heat loss: insulation of attics, walls, windows, outdated heating systems… The audit allows for prioritizing the work to optimize its effectiveness and profitability.
Implement appropriate renovation work
To improve an EPC, it is essential to target the main consumption areas:
Since January 2023, properties classified as G+ (consumption greater than 450 kWh/m²/year) are prohibited from being rented.
Thermal insulation: walls, attics, floors.
Replacement of windows with double or triple glazing models.
Modernization of heating: install a condensing boiler or a heat pump.
Effective ventilation to limit humidity.
In addition to improving the DPE, these renovations increase the property's value, attract more tenants, and limit periods of rental vacancy.
What levers can be used to limit the impact of a poor energy performance assessment (DPE)?
In addition to the works, certain levers can help owners limit the consequences of a poor DPE on rents.
Communicate Transparently
An owner who acknowledges an average DPE but justifies a lower rent or proposes short-term improvements can reassure their tenants. Good transparency regarding actual consumption, estimated charges, or planned works is an asset to maintain trust.
Take Advantage of Public Aid for Energy Renovation
There are programs available to financially support renovations: Energy Savings Certificates (CEE), interest-free eco-loans... When used effectively, these incentives reduce the initial investment and quickly improve the DPE ranking.
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