BER and Rental Yield: How Energy Ratings Affect Returns
A higher BER rating doesn’t just save energy — it directly improves your rental yield by attracting tenants faster, reducing void periods, justifying higher rents, and qualifying you for green mortgage rates.
The Yield Impact
| BER | Typical Monthly Rent Premium | Void Period | Annual Yield Impact |
|---|---|---|---|
| A–B | +5–10% vs D-rated | 1–2 weeks | +0.5–1.0% yield |
| C | Market average | 2–3 weeks | Neutral |
| D | Market average | 3–4 weeks | −0.3–0.5% |
| E–G | −5–10% vs average | 4–6+ weeks | −0.5–1.0% |
On a €300,000 property, a 0.5% yield improvement equals €1,500/year more in your pocket. On a portfolio of 5 properties, that’s €7,500/year.
The Upgrade ROI for Landlords
Improving from D to B typically costs €8,000–15,000 after SEAI grants. With yield improvement of €1,500/year plus property value increase of 5–10%, the payback is 3–5 years. Plus the upgrade cost is partly tax-deductible (up to €10,000 retrofitting deduction).
Full investment analysis: Property Investment Analyser