Is an energy performance certificate required for rentals?

The federalism jungle: Where is an energy performance certificate mandatory?

Unlike traffic law, there is no "Swiss standard" in building law that applies uniformly everywhere. While the cantonal model regulations in the energy sector ( MuKEn ) provide a general direction, their implementation varies.

The basic rule:

In the vast majority of Swiss cantons (including Zurich, Bern, Aargau, and Lucerne), there is currently no legal obligation to present an energy performance certificate (GEAK) simply because an apartment or house is being rented out. You are permitted to market your property without this document. Tenants do not have an automatic right to demand to see an energy performance certificate if one does not already exist.

The exceptions:

Some cantons are taking stricter measures.

• Canton of Fribourg: Here, an energy performance certificate is mandatory when a building is constructed or sold. While there is no explicit requirement to display it in the advertisement for rental properties as there is for sales, transparency is strongly encouraged.
• Canton of Vaud: Here too, an energy performance certificate must be issued in the event of a change of ownership (sale).
• New buildings and subsidies: Regardless of the canton, anyone applying for subsidies for renovations (e.g., thermal insulation) is required to have an energy performance certificate drawn up to document the current state of the building. An energy assessment, equivalent to an energy performance certificate , is also standard for Minergie certifications .

It is therefore crucial to check the energy law of your specific canton. But even if there is no legal obligation, the market is changing: tenants increasingly expect transparency, which only an energy performance certificate can provide.

What information is included in the energy performance certificate (GEAK)?

The GEAK is the official energy performance certificate in Switzerland. It's a four-page document issued by certified experts. But what does this energy performance certificate tell you and the tenant?

The energy label:

Similar to refrigerators or cars, the energy performance certificate uses a scale from A to G.

• Class A (Green): Highly efficient, usually Minergie standard, heat pump, solar power.
• Class G (Red): Old building, uninsulated, old oil heating, high heat losses.

The energy performance certificate assesses two dimensions:

• Building envelope efficiency: How well are the windows, roof, and walls insulated? A good energy performance certificate in this area guarantees high living comfort without drafts.
• Overall energy efficiency: This also includes the building's technical systems. How is the building heated? How is hot water prepared? An energy performance certificate reveals whether the heating system is an energy hog.

A professional energy performance certificate also includes recommendations for improvement. The so-called "GEAK Plus" goes a step further and is a detailed advisory report. It outlines specific renovation measures to improve the energy performance certificate rating.

Why an energy performance certificate offers advantages when renting out a property

Even though you are not legally required to create an energy performance certificate , there are strong economic reasons to do so. An energy performance certificate is a powerful marketing tool today.

1. Competitive advantage in the advertisement

Imagine a tenant comparing two apartments. Both cost 2,000 Swiss francs net rent. Apartment A has no energy performance certificate . Apartment B proudly displays an energy performance certificate with a rating of B. The tenant immediately knows: In Apartment B, the utility costs will be low. In times of high oil and gas prices, the energy performance certificate is an argument that often carries more weight than a new fitted kitchen.

2. Protection against disputes

Utility bill disputes are the most frequent source of conflict between tenants and landlords. If the advance payments aren't sufficient, frustration is high. An energy performance certificate provides clarity and certainty. If you present the energy performance certificate during the viewing, the tenant can't later claim ignorance of the poor insulation. The energy performance certificate thus promotes transparency.

3. Value retention and planning

An energy performance certificate isn't just for tenants. It's a management tool for you as the owner. The certificate clearly shows you where your property is losing energy. This helps you strategically plan renovations (windows, heating) before legal renovation obligations take effect.

Costs and validity: What you need to invest

An energy performance certificate is not free. Since it must be issued by certified GEAK experts, there are fees involved.

• Costs: For a single-family home, a basic energy performance certificate (GEAK) usually costs between 600 and 900 Swiss francs. An energy performance certificate with an advisory report (GEAK Plus) costs between 1,500 and 2,500 Swiss francs, but is financially subsidized in many cantons.
• Validity: An energy performance certificate, once issued , is valid for 10 years. You can therefore use it for multiple tenant changes. Calculated annually, the cost of an energy performance certificate is therefore negligible.

A look into the future

The political debate is intensifying. The MuKEn 2014 regulations are being implemented gradually by the cantons, and calls for a general requirement for energy performance certificates upon property transfers and rentals are growing louder. It is foreseeable that energy performance certificates could become mandatory throughout Switzerland in the future.

Those who voluntarily obtain an energy performance certificate today are ahead of the curve. Furthermore, a good energy performance certificate increases the market value of a property. Investors and buyers pay close attention to the energy efficiency rating. A property with a poor energy performance certificate (" stranded asset") will have to expect price reductions in the future.

Conclusion

The question "Is an energy performance certificate mandatory for rentals?" can currently be answered with "no" for most Swiss cantons. There is no nationwide legal obligation to provide tenants with an energy performance certificate . But that's only the legal aspect.

Economic reality tells a different story. An energy performance certificate builds trust, justifies the rent, and protects against unpleasant surprises when you receive your utility bill. It differentiates your property in a competitive market. Instead of waiting until the law requires it, you should see the energy performance certificate as an opportunity. It makes the quality of your property visible. Those who have nothing to hide display their energy performance certificate .

If you are unsure how to find a certified GEAK expert or how an existing energy certificate affects the market value of your property, Loft offers neutral data and analyses to make your property fit for the energy future.

Glossary

• Energy Performance Certificate (GEAK): The "Building Energy Certificate of the Cantons". It assesses the energy efficiency of a building and is the official energy certificate in Switzerland.
• Energy label: The visual representation in the energy certificate from class A (very efficient, green) to G (inefficient, red), analogous to electrical appliances.
• MuKEn : The "Model Regulations of the Cantons in the Energy Sector". They form the basis for cantonal energy laws and regulate when an energy performance certificate might be required.
• GEAK Plus: An extended version of the energy certificate , which, in addition to the current state, contains a specific consulting report with renovation proposals.
• Minergie: A Swiss building standard for new and modernized buildings. A Minergie certificate is often considered to be of even higher quality than a standard energy performance certificate .