Why are energy labels so important when renting a home?

When you scroll through home listings, you will almost always see a colored letter in the characteristics, ranging from a dark green A++++ to a deep red G. In an overheated rental market, where you're sometimes happy even if you're even invited to a viewing, it's tempting to ignore this label. However, the energy label is perhaps the most important factor for your monthly costs and your long-term enjoyment of living.

This is because the energy label of a rental home tells you at a glance how energy efficient the house is. But what does that mean for your wallet in concrete terms? And why is a home with a bad label sometimes more expensive than a home with a high rental price but a good label? In this article, we dive deep into the world of insulation, installations and the influence of the energy label on your life as a tenant.

The direct impact on your monthly payments

The most tangible reason why the energy label matters is your energy bill. Since the energy crisis in recent years, we have become painfully aware of the fact that the “bare rent” is only part of the story.

The difference between label A and label G

A home with a A-label is well insulated. This means that the heat you generate inside actually stays inside. You need less gas or electricity to keep things comfortable. A home with a G label is, on the other hand, comparable to a colander: the heat escapes through single glazing, cracks in the frames and an uninsulated roof.

If you compare two identical apartments where House 1 has a rental price of €1,200 with label A, and House 2 has a rental price of €1,050 with label G, then House 2 seems cheaper. However, there is a good chance that you will spend an additional €200 to €300 per month in heating costs with House 2, while that may only be €70 with House 1. Bottom line, you are therefore cheaper in the 'more expensive' home.

Protection against price fluctuations

With an energy-efficient home, you are much less vulnerable to fluctuations in the energy market. When gas prices rise again, you hardly feel it because your consumption is low. In a poorly insulated house, any price increase immediately becomes a financial risk. The energy label therefore offers you a bit of financial predictability.

Living pleasure and comfort: more than just money

In addition to the financial aspect, your home comfort plays an enormous role. After all, an energy label is also a strong indicator of how comfortable you live in the house, regardless of the temperature outside.

No drafts and cold walls

In a house labeled D, E, F or G, you often suffer from “radiant cold”. Even when the thermostat is at 21 degrees, it feels uncomfortable because the walls and windows stay icy. This ensures a constant flow of draught into the home. In a home with a good label, the temperature is uniform everywhere. The walls emit no cold and the windows are equipped with HR++ or even triple glass, which prevents thermal bridges.

Summer coolness

Many people only think of winter when it comes to an energy label, but good insulation works both ways. In the increasingly warmer summers in the Netherlands, a well-insulated home keeps the heat out longer. Homes with a bad label (often old buildings with flat roofs without insulation) turn into an oven in July and August, causing you to lose extra power on fans or air conditioning.

Soundproofing

An often overlooked advantage of energy efficiency is sound insulation. The materials used to keep heat in, such as thick layers of insulation and high-quality double glazing, are also excellent at keeping out environmental noise. Do you live on a busy road? Then you'll notice the difference between an old label G window and a modern label A window right in the quiet of your living room.

The impact on the maximum rental price

Did you know that the energy label in the Netherlands can directly affect the price that the landlord can ask? This is especially true for homes that fall into the social rental sector or that could end up in that sector due to a low number of points.

The Home Valuation System (WWS)

The quality of a rental property is expressed in points. The more points, the higher the maximum rental price. The energy label provides quite a few points. A home with label A++ gets many more points than a home with label E.

Since the introduction of the new middle rent legislation, this has become even more important. Landlords are encouraged to become more sustainable: if they do not insulate a home and the label remains bad, the number of points decreases and they sometimes have to lower the rent to a social level. For you as a tenant, this means that a bad label can be an opportunity to have the rent tested and possibly lower through the Rental Committee, because the house is simply not “good enough” for a high rent.

Health and environment

A poor energy label often involves hidden health risks. This is because in poorly insulated houses, condensation occurs more quickly in cold areas. This is the ideal breeding ground for fungi.

Moisture and mildew

Mold spores in the air can lead to respiratory problems, allergies, and asthma. In an energy-efficient home, ventilation is often mechanically controlled (for example with a heat recovery unit), so that the humidity remains constant and the air quality is much higher than in an old house where you can only open a window.

Sustainability

Of course, a good label also contributes to a better environment. By using less gas, you significantly lower your carbon footprint. For many tenants, this is an important ethical consideration: you don't want your enjoyment of living at the expense of the planet.

What should you pay attention to during the viewing?

Just looking at the letter on the ad isn't enough. It is smart to take a look 'under the hood' during the viewing to see if the label is actually being lived up to.

1. Check the windows: Do you see 'HR++' somewhere between the glass plates? That is a good sign. Do you see thin, single glass in a wooden frame? Then you know that the label is probably low.
2. Look at the heating: Is there an ultra-modern heat pump or a central heating boiler from 1995? An old boiler is much less efficient, even if the house is reasonably insulated.
3. Ask about the energy bill: Don't be afraid to ask the broker or the current resident what the average monthly payments are. In practice, a label C home can sometimes feel more economical than a label B home, depending on the behavior of the residents.

The energy label is much more than a mandatory government number. It is a blueprint of your future monthly payments, your health and your daily comfort. Although a house with a green label often seems more expensive in basic terms, it is almost always the wisest choice in the current market. You invest in rest, warmth and a lower total monthly payment.