Energy Label A: The Key to More Rental Points for Your Home

An energy-efficient home is not only good for the environment, but also for the wallets of landlords and tenants. A home's energy label plays a crucial role in the Housing Valuation System (WWS), which determines how many rental points a home receives and, therefore, the maximum rent. A home with an A energy label can earn significantly more points than a home with a lower label, such as E, F, or G, which directly affects the rental value. In this blog, we delve into the influence of the energy label on rental points, how you can achieve label A, and why this is a smart investment for landlords. These insights are based on practical experience with sustainability and WWS optimization, as shared in guest lectures on property management.

Why the energy label is important for rental properties

The energy label indicates how energy efficient a home is, from A++++ (very efficient) to G (very inefficient). Since the introduction of the new energy label on January 1, 2021, as laid down in the guidelines of the national government, the label carries more weight in the WWS. A higher energy label means more WWS points, which leads to a higher maximum rent. This is particularly relevant for landlords of independent and non-independent homes, such as apartments or rooms.

• Detached homes: For homes measuring 40 m² or larger, energy label A yields up to 41 points for single-family homes and 37 points for multi-family homes. Label A+ scores as high as 47 points (single-family) or 43 points (multi-family). In contrast, label F scores -9 points and label G scores -15 points, which drastically reduces the rental price.
• Non-independent dwellings (rooms): Energy performance is calculated per square meter, including private spaces and part of communal areas. Label A yields 0.65 points per square meter, while label G yields -0.15 points per square meter.
• Monuments: An exception applies to national, municipal, or provincial monuments: from label E or lower, they receive 0 points instead of negative points, which protects landlords of monumental buildings.

Example: An independent 50 m² home in Rotterdam with energy label F (-9 points) can achieve a point increase of 46 points when upgraded to label A (+37 points), which can increase the rent by hundreds of euros per month.

How do you achieve energy label A?

Improving an energy label to A requires targeted sustainability measures that optimize a home's energy performance. Here are the most effective steps, as often discussed in guest lectures on property management:

1. Solar panels (PV panels): Installing 6-8 solar panels (440WP) significantly reduces primary energy consumption, a key factor for label A. This is particularly effective for homes with flat roofs in cities such as The Hague or Utrecht.
2. Facade and roof insulation: Interior facade insulation (Rc≥3.5) and roof insulation (Rc≥4.0) minimize heat loss, which is crucial for older homes with an E/F label.
3. Hybrid heat pumps: This efficient heating option combines with existing central heating boilers and contributes to low energy consumption.
4. Decentralized heat recovery ventilation: CO2-controlled heat recovery units improve ventilation and comfort, further optimizing energy performance.

Practical example: In a project in Rotterdam, we transformed 40 homes from energy label E/F to A by combining solar panels, insulation, and heat pumps. This resulted in a point increase of +52 per home (including label and other improvements), bringing the homes to private sector status (187+ points).

Tip: Take advantage of subsidies such as the Sustainable Energy Investment Subsidy (ISDE) and the Rental Property Sustainability Subsidy (SVOH) to reduce investment costs. In the Rotterdam project, subsidies reduced the costs from €17,500 to €13,160 per home, with an ROI of 18%.

The impact of energy label A on rental points and rental value

Achieving energy label A has immediate and long-term benefits for landlords, as we emphasize in guest lectures on property management:

• Higher WWS points: An upgrade from label F (-9 points) to A (+37 points) can yield up to 46 extra points, which increases the rent by hundreds of euros per month. For a 40 m² home, this can make the difference between social housing (€681.44) and mid-range rent (€1,025.87).
• Free market status: With label A and additional improvements (such as luxury kitchens), it is possible to exceed the liberalization threshold of 187 points, as in our Rotterdam project, where homes fetched €1,200+ per month.
• CO2 reduction: Label A homes save significant amounts of CO2 (e.g., 3,500 kg per home per year in Rotterdam), contributing to sustainability goals.
• Tenant benefits: Lower energy costs and improved living comfort make homes more attractive, which reduces vacancy rates.
• Market value: Energy-efficient homes are more valuable, with an estimated increase in value of €45,000 per home in our Rotterdam project.

For non-independent dwellings: For a room measuring 20 m² (10 m² private + 10 m² shared), label A yields 0.65 points/m², or 13 points in total, while label G yields -3 points. This difference can increase the rent by tens of euros per month.

Why invest in energy label A now?

With the Affordable Rent Act (July 2024) and the national target of an average energy label B for social housing by 2030, now is the time to invest in sustainability. Homes with low labels risk rent reductions and declining value, while label A ensures:

• Compliance: Compliance with stricter regulations, such as mandatory WWS point scoring.
• Competitive advantage: Energy-efficient homes are more attractive in cities such as Amsterdam, Rotterdam, Utrecht, and The Hague.
• Future-proofing: Label A prepares homes for future energy standards.

Practical example: In a project in Utrecht, we improved energy labels from E to B, which increased WWS points and enabled mid-range rental prices. A further upgrade to label A would have yielded even more points and value.

Prepare your home for the future

Energy label A is a game changer for landlords who want to maximize their rental points and rental value. By investing in sustainability measures such as solar panels, insulation, and heat pumps, you can not only comply with the Affordable Rent Act, but also make your home more attractive and valuable.

Would you like to bring your rental properties up to energy label A and increase your WWS points? Contact us for a no-obligation consultation!