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Environmental protection is a major concern in modern society. In order to prevent and reduce pollution from facilities, as well as to ensure the safety, health and convenience of the public, neighborhood and staff, laws and regulations have been put in place. This article highlights the objectives of the commodity law and the operating permit to ensure sustainable development.

## Objectives of the "commodity" law:
The main objective of the "commodity" law is to achieve the integrated prevention and reduction of pollution from installations. It also aims to protect the safety, health and comfort of the public, the neighborhood and the staff of establishments, as well as the health and safety of workers. Finally, it promotes sustainable development in order to preserve our environment.

## Convenience and inconvenience studies:
Before certain decisions are taken, a preliminary study is carried out by the relevant administration, known as a "comfort and inconvenience study". The purpose of this study is to evaluate the advantages and disadvantages of a project for the public. It makes it possible to take into account the interests protected by the law and to anticipate possible consequences.

## What is an establishment?
All industrial, commercial or artisanal establishments, whether public or private, as well as related facilities, activities and processes, are subject to the provisions of the "commodity" law. These establishments may present dangers or inconveniences to the interests protected by the law.

##Competent authorities for permits:
Class 1 and 3 facilities are licensed by the Minister of the Environment and the Minister of Labor. Class 2 establishments are authorized by the Mayor. Class 1A and 3A establishments are licensed by the Minister of Labor. Finally, class 1B and 3B establishments are licensed by the Minister of the Environment. Class 4 establishments are not authorized, but are subject to the provisions of a Grand-Ducal regulation.

Difference between a class 1 establishment and a class 3A establishment:
Class 1 establishments must be authorized by the Minister of the Environment and the Minister of Labor, following a public inquiry. Class 3A establishments, on the other hand, only require a permit from the Minister of Labor, without a public inquiry. This difference depends on the characteristics and potential impact on protected interests.

## Nomenclature of Classified Establishments and Criteria:
The Classified Establishments Nomenclature includes different codes for office buildings and cold production facilities. For example, office buildings with a total floor area of less than 4,000 m2 are classified as Class 3, while those with more than 4,000 m2 are classified as Class 1. Similarly, cold production facilities are classified according to their total cooling capacity and the amount of refrigerant used.

## The transfer of an installation:
The transfer of an installation requires a full operational application. It is important to note that any significant change to the facility must be considered and properly licensed.

## Operating conditions set by the Minister of the Environment:
The permit issued by the Minister of the Environment sets out the conditions of development and operation to protect the human and natural environment. These conditions include measures for the protection of air, water, soil, fauna and flora, noise and vibration control, rational use of energy and waste prevention and management. The Minister may amend or supplement the permit if there is a justified need to do so.

## Permits required prior to construction and operation:
Before starting the construction and operation of a classified establishment, it is imperative to obtain all the authorizations required by law. In addition to the authorizations required by the "commodity" law, authorizations from the mayor may also be required under the law on town planning and urban development.

## The nature of a real right of authorization:
The "commodity" license has the character of a real right. This means that the license is linked to the location and nature of the establishment. Thus, a classified establishment can be sold to another person without the "commodity" license having to be modified, as long as the new operator continues to operate the same establishment at the same location, with the same equipment and the same activities.

## Penal and administrative sanctions:
In the event of non-compliance with the provisions of the "commodity" law, criminal and administrative sanctions may be applied. Criminal sanctions may include imprisonment and fines, as well as closure of the establishment by court order. Administrative sanctions may include suspension of operations, site work, or partial or total closure of the facility, following a formal notice.

The protection of the environment and the authorization to operate are essential elements to guarantee sustainable development. The "commodity" law aims to prevent pollution and to protect the safety, health and convenience of the public and personnel. Establishments are subject to specific authorizations according to their class, and operating conditions are set by the competent authorities. Compliance with these regulations is crucial to ensure the protection of the environment and the sustainability of our industrial and commercial activities.

Environmental protection and licensing: Ensuring sustainable development

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As a real estate agent, you may have heard that the biggest challenge is dealing with differences of opinion on the value of a property. Between the seller, the buyer and the banker who sends an appraiser, opinions can be varied and sometimes contradictory. In addition, the price quoted by a real estate agent can be seen as an indicator of his or her competence - the higher the price quoted, the lower the presumed competence. Thus, real estate appraisal can quickly become a tricky exercise.

## Understanding the Seller
Before diving into the technical details of the appraisal, it is essential to understand the seller's situation. It is important to make sure that the seller is truly motivated to sell and is not just trying to test the market. To do this, the agent can ask several questions: Why do you want to sell/move? When do you want to have moved/sold? What are the consequences for you if you don't sell? How much do you think your home is worth? Are there any liens on the property? Have you contacted other agencies?

## Real Estate Appraisal Methods
Once you have a good understanding of the seller's point of view, it is time to dive into the valuation of the property. There are several methods that can be used, including:
1) **Direct or Indirect Comparison (by income)**: This method involves comparing the property to other similar properties that have recently been sold or leased.
2) **Market Value**: This is the price a buyer would be willing to pay on the open market.
3) **Mortgage Value**: This is the value of the property to a bank, often used to determine how much they would be willing to lend to purchase the property.
4) **Opportunity to buy or sell**: This method takes into account current market conditions and opportunities.
5) **Convenience Price**: This is the price that would be accepted and paid by someone with a specific need.
6) **Fair Value**: This is the price that the asset could reasonably command in the market at a given time.

## Criteria for Determining the Value of an Asset
When it comes to determining the value of a property, three factors are of primary importance: location, surface area and standing. Each of these factors is important, but they are often interdependent. For example, a large space in a prime location with a high standard of living will obviously be valued higher than the same space in a less desirable location or with a lower standard of living.

### Calculation Example
Let's assume that we have a 200m² house in a residential area with a high standard of living. The average price per sqm ² in this neighborhood is 3000€. By comparison, the value of this house would be 200m² * 3000€/m² = 600,000€.
The value of the land can be determined by its price per acre or by its surface. A building lot will always be worth more than a "built" lot. For example, if a building lot is worth 100,000€ and is 75% built, the value of the lot would be 75,000€.

The buildings on the land can be valued in three ways: by the built volume (m³), by the useful surface (m²), or by a comparison method based on potential income. If the property is rented, the monthly rent can be estimated and multiplied by 12 to obtain the annual rent. This rent is then used to estimate the value of the property.
For example, if the monthly rent is $1000, the annual rent would be $12,000. Using a rate of return of 5% (which is generally accepted by the rent board), the value of the property would be 12,000€ / 0.05 = 240,000€.

Finally, the three valuations (comparison value, land value, and income-based value) are averaged to obtain an average value. For example, if these values are respectively 600,000€, 75,000€, and 240,000€, the average value would be (600,000€ + 75,000€ + 240,000€) / 3 = 305,000€.

This average value should be used as a basis for pricing the property. However, it is important to note that this valuation needs to be refined based on additional factors, such as market conditions, the unique characteristics of the property, and the specific needs of the seller and buyer.

In conclusion, real estate appraisal is a complex task that requires a thorough knowledge of the market, the property, and the various factors that can influence the value of a property. However, with the right methods and a balanced approach, you can successfully value a property accurately and fairly.

The Art of Real Estate Appraisal: A Comprehensive Guide

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Do you know what home staging is? You know, making your house look nice so people want to buy it. Well, did you know that it's the same for your garden? Yes, it's true! We call it "garden staging". It's very simple: we make the garden look good to attract buyers. And it works really well!

## 1: Why beautify the garden?

It's simple. If you want to sell a house, you need to make sure that when people look at it they say "Wow, I want to live here! And to do that, the house has to be nice, of course. But the garden has to be nice too. A beautiful garden makes you want to spend time outside, to have barbecues, to play with your children... In short, it makes you want to buy the house!

And that's not all. Did you know that a beautiful garden can increase the price of a house? Yes, it can! According to several studies, a well-maintained garden can increase the price of a house by 10% or more. So it's worth taking the time to make your garden pretty, isn't it?

## 2: How to make the garden look good?

So how do we make the garden look nice? It's easy, just follow these few steps:
1. Clean up: Before you start to beautify the garden, you must first clean it up. Remove anything broken or damaged, such as old garden furniture or flower pots. The idea is to make a fresh start.
2. Fix what's broken: Once the garden is clean, look for things that need fixing. For example, if the patio is damaged, repair it. If the fence needs a coat of paint, paint it. And if you have a pool, make sure it's clean and well maintained.
3. Gardening: Now that the garden is clean and in good shape, it's time to garden. Mow the lawn, trim the trees and hedges, remove the weeds... The better the garden, the better the house will look.
4. Design the garden: Once the garden is clean and well maintained, you can start to design it. For example, you can add low-maintenance plants, create a small seating area to relax in, or create a play area for the children.
5. Decorate the garden: Finally, to make the garden look really good, you need to decorate it. But be careful, you don't want to overload the garden with decorations. The idea is to add a few decorative elements to make it more welcoming and warm without going overboard.

Garden staging is a small investment that can pay off big. For about 1% of the price of the house, you can improve the garden and attract more buyers. And who knows, you might even increase the price of the house by 10%! 

So don't hesitate to hire a garden staging professional or roll up your sleeves and do the work yourself. After all, it's your garden and it's up to you to make it as beautiful as possible!

Make the garden pretty to attract buyers and sell fast!

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The world of property is vast, complex and full of professions with different skills. One of these professions, the property developer, occupies an essential place in the property development landscape. They are responsible for the development of property projects, from the purchase of land to the sale of homes. But what are the steps involved in this process? Let's take a closer look to find out.

## 1. Land Acquisition: The first step towards project completion
Land acquisition is the first step in the property development process. It requires thorough analysis and real insight to identify the best sites in the right locations. However, not all land is immediately ready for development.

Some land may be classified as 'green zone', meaning that it is not buildable. To make it buildable, the municipality's General Development Plan (PAG) needs to be amended. It is important to note that the modification of the PAG is the exclusive competence of the municipality. At this stage, the value of a plot does not usually exceed €500 per square metre.

This is a critical stage where the developer does not control everything. He has to rely on his expertise and intuition, but he also has to be patient. The risk is very high and that's why some people call it the "casino" stage of the process.

## 2. Drawing up the Specific Development Plan (SDP): Designing the project
Once the land has been acquired, the next step is to prepare the Specific Development Plan (SDP). The SDP is a detailed document that describes the development project for the land. It can be prepared either by the municipality (SDP QE) or by the developer (SDP NQ), depending on the case. Obtaining this plan can take between 3 and 5 years. 


This phase is delicate and can be confronted with various issues such as roads, environment, land registry, sites and monuments and many others. The developer must be resilient and willing to overcome any obstacles to complete the project.

Once the SDP is approved by the municipality and the ministry, the project can finally move forward. But the journey is far from over.

## 3. Building the infrastructure: Laying the foundations

The infrastructure implementation phase is crucial. This is where the developer has to implement what has been planned in the SDP. The work ranges from choosing the materials to be used, to taking accurate measurements, to handing over the land and paying compensation.
 
It should be noted that the law requires an agreement at this stage. This agreement, which may sometimes seem formal or superficial, is in fact an essential element in ensuring that the commitments of all parties are met.

## 4. Planning permission: A crucial validation 
In order to obtain planning permission, the developer must scrupulously comply with the PAG. The application for planning permission is made through an architect and must be accompanied by several administrative documents, such as a cadastral extract, an OAI certificate and an EPC. 

Once this authorisation has been obtained, the developer can finally start marketing the project. But be careful! It is also important to ensure that all the necessary permits are obtained. Patience is therefore an essential virtue at this stage, which can take at least 3 months.

## 5. Construction: the heart of the developer's business
Once all the permits have been obtained, the construction phase begins. The developer supervises the construction of the building, making sure that everything is done according to the standards and regulations in place. This is an exciting and stressful time as the developer's vision begins to take shape.

## 6. Building operations: Making the project happen 
Once the building is built, the developer can finally sell it to the end users. This is the culmination of his hard work and the beginning of a new phase in the building's life. It should be noted that the ten-year and two-year warranty is mandatory, while the ten-year and two-year insurance is not.

In conclusion, the work of a property developer is complex and demanding and requires perfect mastery of the various stages of the process, from the purchase of the land to the sale of the building. The risks are many, but the rewards can be considerable for those who succeed.

The key stages of property development: From purchase to sale!

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A lease, also known as a tenancy agreement, is an agreement between a tenant and a landlord to rent a property. It sets out the conditions under which the tenant may use the property in return for a payment to the landlord. This article discusses the various aspects of a lease, including penalties for default by the tenant, the right of first refusal, statutory extensions and aspects specific to commercial leases.

## Penalties for defaulting tenants
There are several possible sanctions in the event of tenant default. One of them is the dissolution or termination of the lease, which must be sought in court. Even if the contract contains an explicit clause, the dissolution or termination must always be approved by a judge. 

Another sanction is the exception of non-performance, which allows the lessor to suspend his own obligations. This exception can be applied without recourse to the courts, but it is advisable to proceed with caution. 

The lessor also has the privilege of exercising a lien on any movable property in the rented premises as security for unpaid rent. Finally, in the event of non-payment, the landlord has the right to repossess the furniture in the rented premises.

## Right of pre-emption
The right of pre-emption is an advantage granted to the tenant who has occupied the premises for 18 years or more. In the event of a sale, this tenant has priority. They have one month to respond to the sale offer.

There are exceptions to this rule. For example, in the case of a judicial auction, the tenant can go directly to the public sale. Similarly, if the owner sells to a family member (up to the third degree), the right of pre-emption does not apply. 

If the owner eventually decides to sell to a third party, he can only do so at a higher price than the tenant is offering.

## Legal renewal
The legal renewal extends the lease under the same conditions as before, except that the term becomes indefinite. 
This extension is not automatic. The landlord can refuse to extend the lease if the tenant has not fulfilled his obligations, if the landlord needs the property for his personal use, or if there is a serious and legitimate reason why the continuation of the lease would cause greater damage to the landlord than to the tenant.

## Commercial lease: notice period and tacit renewal
The commercial lease is specific. The notice period cannot be less than six months and the notice must be given by registered letter with acknowledgement of receipt.

If the lease is terminated for any reason, it is automatically renewed for an indefinite period. The lessee is then obliged to renew or adjust the rental guarantee accordingly so that the lessor has a guarantee until the end of the lease.

It is important to note that all of these points are subject to variation depending on the local jurisdiction, the nature of the property and the specific terms of the lease. Always consult a professional for advice specific to your situation.

**Here are some multiple choice questions on this topic:**

1. What is a lease?
-     a) A contract of sale
-     b) A tenancy agreement
-     c) A service contract
-     d) A contract to buy

   **Answer: b) A rental agreement**

2. What is the penalty for default by the lessee?
-     a) Termination of the contract
-     b) An increase in the rent
-     c) Extension of the lease
-     d) Reduction in rent

   **Answer: a) termination of the lease**

3. What is the right of first refusal?
-     a) The right to terminate a lease
-     b) The right to buy a property before others
-     c) The right to sell a property before others
-     d) The right to rent a property before others

   **Answer: b) The right to buy a property before others**

4. What is the legal term of a lease?
-     a) A fixed term of two years
-     b) An indefinite term
-     c) A fixed term of one year
-     d) A fixed term of six months

   **Answer: b) An indefinite term**

5. What is the minimum notice period for terminating a commercial lease?
-     a) One month
-     b) Two months
-     c) Three months
-     d) Six months

   **Answer: d) Six months**
   
6. What is meant by 'exception to the rule'?
-     a) The lessor can suspend his obligations
-     b) The tenant can suspend his obligations
-     c) The landlord can increase the rent
-     d) The tenant can reduce the rent

   **Answer: a) The landlord can suspend his obligations.**

7. What is a garnishment?
-     a) A legal action to obtain payment
-     b) A penalty for non-payment of rent
-     c) A penalty for damaging the property
-     d) A legal action to obtain payment

   **Answer: b) A penalty for non-payment of rent**

8. What is a commercial lease?
-     a) A rental agreement for an apartment
-     b) A lease for a business
-     c) A contract for the sale of a business
-     d) A service contract for a business

   **Answer: b) A lease for a business**

9. What is a rent deposit?
-     a) A sum of money paid by the tenant as security
-     b) An insurance policy taken out by the tenant
-     c) Insurance taken out by the landlord
-     d) Money paid by the landlord as security

   **Answer: a) Money paid by the tenant as security**

10. What is the purpose of an express break clause?
-     a) To automatically terminate the lease in the event of non-payment of rent
-     b) To increase the rent automatically in the event of non-payment
-     c) Automatically extend the lease in the event of non-payment
-     d) automatically reduce the rent in the event of non-payment

   **Answer: a) Automatically terminate the lease for non-payment of rent**

Leasing: All you need to know !

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The world of property is a fascinating one with many different facets and roles. Today we're going to take a look at one particular figure in this vast landscape: the estate agent as a property dealer. Let's dive into this exploration!

## A real estate agent: Who is he and what does he do?
A real estate agent is an individual or a company that specializes in buying properties with the intention of reselling them at a later date, with the aim of making a profit. He is an independent operator who invests his own funds or borrowed funds for which he is personally responsible. This involves taking significant financial risks. The aim is to buy a property below market value and then sell it at market value.

Ethically, it is preferable to be transparent about one's role when dealing with a client, especially when the client is an individual. And the main purpose of this activity? To make a profit.

An estate agent may also take on the role of a property developer. He could buy a piece of land or a building to be demolished, build something new on it and then sell it on.

From a tax point of view, the real estate agent is subject to the commercial profits regime and VAT. He must comply with certain legal obligations in terms of declaration of existence and accounting, declaration of receipts, invoicing and other specific obligations related to real estate operations.

## Ethics and transparency
It is essential to note that it would be ethically unacceptable for an agent to accept a sales mandate and lead the seller to believe that he will try to sell the property at the highest possible price, only to offer a lower price. He must therefore be transparent and tell the seller clearly: "I cannot tell you how much it is worth, but I can tell you how much I am offering".

The advantage for the seller is that he can sell without commission to a professional who can quickly prove his solvency.

## Definition of market value
Market value is the price that several buyers would be willing to pay for a property within a reasonable period of time.

## The estate agent as an intermediary
As an intermediary, the estate agent works on a finder's fee basis. His income is derived from facilitating the sale, bringing together a seller and a buyer and arranging all the details of the sale so that it takes place in the best possible conditions. In order to justify his commission, he must be able to explain the added value of his intervention.

An efficient real estate agent will sort through the calls from potential buyers and will have a large number of properties to sell, i.e. many mandates. After all, whoever has the mandates controls the market.
Whoever has the mandates controls the market and therefore the transaction.

## The road to commission
In order to earn commissions, an agent has to follow a process that includes several steps: marketing to find a buyer, signing a preliminary sales agreement, closing deeds at the notary's office. And all this requires having properties to sell, i.e. mandates. To obtain these mandates, it is necessary to establish contacts through appointments, which also requires marketing.

## The price gap: the reality
There is currently a significant gap between asking prices and actual recorded prices, often between 15 and 20%. There are three main reasons why a property may not sell:

1. The location of the property
2. The condition of the property
3. The price of the property

The estate agent acts as an advisor to both the seller and the buyer. He must be wary of accepting mandates that are too expensive, that may be unsaleable, that may take too long to sell and that may have a high absorption rate. The solution is truth, transparency and a fair price.

## Marketing on your feet: The winning strategy
Finally, a good 'stand-up marketing' strategy is about increasing the property's market presence, prospecting and creating opportunities. Asking open questions and listening carefully are essential. For full understanding, it is always helpful to review the entire course.

And that's it! We hope you have found this dive into the role of the estate agent as a marketer useful. We look forward to continuing to explore the exciting world of property with you. See you soon!


Maximising value: Roles and Strategies of the Real Estate Professional

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When you're a landlord looking to rent your property, finding the right tenant can seem like a challenge. You want to build trust, minimize the risk of non-payment and ensure smooth management of your property. In this article, we'll provide you with valuable tips on how to choose the perfect tenant, while adhering to the rules and regulations in place.

## 1) Income Assessment:
One of the key aspects of selecting a reliable tenant is to assess their income and financial stability. It is recommended that you look for applicants whose income is approximately two to three times the amount of the rent. This greatly reduces the risk of non-payment. Ask applicants to provide proof of income, such as the last three paychecks, bank statements or tax returns. This will allow you to verify their ability to meet the financial burden of the rental.

## 2) Background check:
Before signing a rental agreement, it is important to conduct a thorough background check on the prospective tenant. Ask them to provide references from previous rentals and contact previous landlords to obtain information about their behavior as tenants. You can also do an online search to see if there are any legal problems or complaints registered against them. This step will help you identify responsible and reliable tenants.

## 3) In-depth visit:
Arrange tours of your property for pre-qualified applicants. During the tour, carefully observe their behavior and attitude toward the property. Ask them questions about their lifestyle, rent payment habits and interest in staying in the rental long-term. This will give you an idea of their commitment and ability to maintain your property.

## 4) Clear and complete rental agreement:
Be sure to write a clear and complete rental agreement that includes all the terms, responsibilities and obligations of both parties. Clearly state the amount of rent, payment terms, maintenance rules and termination provisions. Make sure the tenant understands all the terms of the contract before signing it.

## 5) Use a professional:
If you don't want to handle the search and selection of tenants yourself, you can hire a real estate professional or an agency that specializes in rental management. They have the expertise and resources to help you find qualified tenants, conduct thorough due diligence and manage the administrative aspects of the rental.

In conclusion, choosing the perfect tenant takes time and attention, but it is essential to a successful rental experience. By carefully assessing income, conducting background checks, conducting thorough walk-throughs and using a clear rental agreement, you will maximize your chances of finding a reliable and respectful tenant. 

Whether you manage the tenant search yourself or hire a professional, make sure you follow all applicable laws and regulations. With a diligent approach, you'll be able to rent your property with peace of mind and ensure a harmonious relationship with your tenant.

**Here are 10 quiz questions with 4 options and corresponding answers:**

1) What document can a landlord request from a tenant during screening?
-    a) ID card
-    b) Driver's license
-    c) Passport
-    d) All the documents mentioned
   
**_Answer: d) All of the above_**

2) Which criterion can help reduce the risk of default?
-    a) Financial stability
-    b) Hair color
-    c) Astrological sign
-    d) Preferred make of car
   
_**Answer: a) Financial stability**_

3) What is the importance of doing a background check on a potential tenant?
-    a) Evaluate their personality
-    b) Find out about their hobbies
-    c) Checking his or her behavior as a previous tenant
-    d) Have topics of conversation for the visit

   _**Answer: c) Checking on their behavior as a previous tenant**_

4) What is the purpose of a clear and complete rental agreement?
-    a) Decorate the unit
-    b) To establish the rules and responsibilities of the tenant and landlord
-    c) Serve as a coloring book
-    d) To make a shopping list

   **_Answer: b) Set out the rules and responsibilities of the tenant and landlord_**
   
5) What is the benefit of using a real estate professional for rental management?
-    a) Get advice on interior design
-    b) Avoiding the administrative tasks associated with renting
-    c) Receive dance lessons
-    d) Learn to play the piano

   **_Answer: b) Avoiding the paperwork involved in renting_**

6) Which financial criteria is recommended to reduce the risk of default?
-    a) Regular income
-    b) Stamp collection
-    c) Ability to solve complex mathematical equations
-    d) Number of friends on social networks

   **_Answer: a) Regular income_**

7) How important is it to tailor your tenant selection to your housing type?
-    a) Determine if they like pets
-    b) Check if they like gardening
-    c) Ensure a better match between the tenant and the unit
-    d) Find out their cooking skills

   **_Answer: c) Ensure a better fit between the tenant and the home_**

8) What is the most important criterion for choosing an ideal tenant?
-    a) Eye color
-    b) Shoe size
-    c) Job stability
-    d) Zodiac sign

   **_Answer: c) Job stability_**

9) Which document can be used to prove a tenant's employment status?
-    a) Bank statement
-    b) Medical certificate 
-    c) Employment contract
-    d) Telephone bill

   **_Answer: c) Employment contract_**

10) How important is it to follow the laws when selecting a tenant?
-     a) To avoid legal problems
-     b) Receive free chocolates
-     c) Create an atmosphere of suspense
-     d) Collecting stamps

    **_Answer: a) Avoid legal trouble_**

Landlord: How to find the perfect tenant?

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Architecture: An Art of Building, a Responsibility and a Design Process

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The Energy Passport, also known as the Energy Performance Certificate (EPC), is a requirement established by European Directive 2002/91/EC and the Grand-Ducal Regulation of 20 November 2007, amended on 1 July 2012. The purpose of this system is to inform future owners or tenants about the energy status of a property and to encourage owners to invest in energy renovation work.

## What is the Energy Performance Certificate?

The Energy Performance Certificate is a quality label that assesses the energy performance of a residential building. It is divided into several classes and provides essential information on the energy consumption of the house, the thermal insulation, the CO2 emissions and the level of energy efficiency. It allows consumers to quickly visualize whether the building is energy efficient or not, even without technical knowledge.

## When is an Energy Performance Certificate mandatory?

Depending on the requirements, an Energy Performance Certificate is mandatory in several cases. It is required for any new construction, extension of more than 80m2, modification or significant transformation of a residential building. It is also required when there is a change of owner or tenant if the building does not already have one.

## Who issues Energy Performance Certificates?

Energy Performance Certificates are issued by architects, consulting engineers and other experts approved by the Minister of Economy and Foreign Trade. These qualified professionals collect the necessary information, carry out the necessary calculations and issue the Energy Performance Certificate. It is important that you use approved service providers to ensure the reliability of the results.

## What information is included in the Energy Performance Certificate?

The Energy Performance Certificate provides essential information on the energy performance of the building. It assesses the primary energy demand of the home, which includes the energy used for heating and hot water. It also indicates the CO2 emissions, the greenhouse gases emitted when fossil fuels are burned.

The Energy Performance Certificate also classifies the building according to its overall energy performance, its thermal insulation class and its energy efficiency class. These classifications allow you to quickly identify the energy quality of your home.

## Why is it important to have an Energy Performance Certificate?

The Energy Performance Certificate has many advantages. On the one hand, it informs future owners or tenants about the energy characteristics of the property, enabling them to make an informed decision when buying or renting. On the other hand, it encourages homeowners to invest in energy improvements based on the results of the EPC, thereby helping to reduce energy consumption and CO2 emissions.

The Energy Performance Certificate is a requirement established by the European Directive 2002/91/EC and the Grand Ducal Regulation of 20 November 2007, the latter amended on 1 July 2012. This set of rules is specifically applicable to residential buildings, provided that their commercial area is less than 10%.

These regulations define a calculation method as well as energy performance requirements. The purpose is twofold: to inform future owners or tenants of the energy status of a property and to encourage owners to invest in energy renovation work on their property based on the results of the Energy Performance Certificate.

An Energy Performance Certificate (EPC) is mandatory for any new construction, extension of more than 80m2, alteration or substantial alteration. It is also mandatory for any change of owner or tenant if the building does not already have an EPC. The application for an EPC is the responsibility of the owner or their representative and the document is prepared by architects or consulting engineers.

Each owner receives an original copy of the EPC, which is updated after 4 years to reflect actual energy consumption. It is valid for 10 years from the date of issue and does not need to be renewed, except in the case of insulation work. The EPC covers the whole building. In the case of semi-detached houses, an EPC is required for each building.

The Energy Performance Certificate acts as a quality label to assess the energy consumption of the home. It is divided into three categories:

1. The energy class, which depends on the primary energy demand. This requirement takes into account the thermal envelope of the building, its technical installations and the environmental aspect of the energy source used.
2. The thermal insulation class, which is based on the heat requirement for heating. It assesses the thermal quality of walls, roofs, ceilings and windows, as well as the type of construction, quality of workmanship and orientation of the building.
3. The energy performance level, which measures CO2 emissions. The rating is from A (best) to I (worst).

Depending on the EPC, the home can be classified as a Passive House (PH) for classes lower than or equal to A, a Low Energy House (NEH) for classes lower than or equal to B and an Energy Saving House (ESH) for classes lower than or equal to C.

Finally, it is important to note that primary energy, which is a non-quantifiable and non-palpable measure, includes the heat required for heating and hot water. It also includes the additional energy required to operate the energy source used.

To determine the energy pass, we refer to the Energy Reference Area (ERA), which excludes unheated rooms. This area corresponds to the conditioned part of the net floor area within the thermal envelope. A conditioned space is a space that requires heating or cooling for normal use.

This information is given in the Energy Performance Certificate (EPC) in the Building Information section. For example, a number such as 475 represents the ERS of the house (usually the heated area) in square meters.

The EPC also indicates the CO2 emissions, the greenhouse gases emitted when fossil fuels are burned. These emissions are expressed as CO2 equivalents.
Final energy demand is another measure mentioned in the EPC. It indicates the annual amount of energy (gas, oil, wood, etc.) required for heating and hot water in the units used for billing. It does not include energy used for cooking.

Of course, I will explain in detail the calculation made in the previous example.

The aim is to determine the total energy consumption of a house over a year, based on the Energy Reference Area (ERA) and the Final Energy Requirement (FER). In this example, the ERA is 475 m2 and the FER is 232 kWh/(m2/year).

1. Multiply the FEB by the FER: this gives the total energy consumption of the house over a year in kWh. In the example we have 232 kWh/(m2/year) * 475 m2 = 110,200 kWh/year.

2. Conversion of this energy into fuel units: the text gives the conversion of 10 kWh into liters of fuel oil and cubic meters of gas. To obtain the consumption in liters of oil or cubic meters of gas, divide the total energy consumption by 10. In the example we have: 110,200 kWh/year / 10 = 11,020 liters of fuel oil or m3 of gas per year.

This means that the house would consume 11,020 liters of oil or 11,020 m3 of gas per year for heating and hot water, based on the calculated BEF and ERS of the building.

It is important to note that this calculation provides an estimate of energy consumption based on the calculated final energy demand. Actual energy consumption may differ due to factors such as user behavior, actual climate and other unforeseen factors, as well as simplifications in the collection of building and equipment data. Therefore, a verification will be carried out after 4 years to compare the final energy demand (calculated) with the final energy consumption (measured).

The calculation of the final energy demand is based on average reference values for the climate and internal temperature of the building. Therefore, actual consumption may differ from the calculated value. For example, one could have a calculated final energy demand (BEF (c)) of 232 kWh/(m2/year) and a measured final energy consumption (CEF (m)) of 206.6.

To determine the consumption of the house based on the calculated final energy demand, the SRE is multiplied by the BEF (c). This is then converted into liters of fuel oil or cubic meters of gas using the following conversion: 10 kWh of fuel oil equals 1 L of gas and 10 kWh of gas equals 1 m3 of gas.

Four years after the EPC is set up, an audit is carried out to compare the final energy demand (calculated) and the final energy consumption (measured) for heating and hot water. If a gas oven is present, its consumption is also taken into account. Possible differences between the measured consumption and the calculated requirement can have several causes: an actual use of the building that differs from the standard use, an actual climate that differs from the reference climate and other unpredictable factors, as well as simplifications in the collection of building and installation data (surfaces, U-values, etc.).

The U-value is a measure of heat loss that is also taken into account when assessing the energy performance of a building.

To understand the energy consumption of a house, it is important to understand how the heat demand and final energy consumption are calculated. Here is a detailed explanation of the different steps involved in this calculation:

1. Wall losses: These losses are calculated by multiplying the surface area of the walls (walls, roofs, floors) by their U-value. The U-value measures the heat loss of a material, i.e. its ability to transmit heat. The higher the U-value, the greater the heat loss.
2. Air leakage losses: These are heat losses due to air escaping from the building through small holes, such as those around windows. These losses are often measured using a blower door test.
3. Ventilation losses: These heat losses occur when warm indoor air is exhausted through the controlled mechanical ventilation (CMV) system.
4. Solar gain through glazing: This is the heat gained when the building's glazing is exposed to the sun. It is a positive contribution as it helps to heat the building.
5. Internal gains: These are heat gains from internal sources such as people (100 watts per hour per person), appliances, computers, etc.Taking all these factors into account, we can determine the heat demand of the dwelling, which is the net heat required to maintain a comfortable indoor temperature.
6. Heat demand of the dwelling: To this net demand we add the losses of the heating system, the heat demand for the production of domestic hot water (DHW) and the losses of the system, the energy consumption of the auxiliaries and the energy consumption for cooling. The solar thermal input for DHW and/or heating is then subtracted. The total is the final energy consumed.
7. Annual primary energy consumption of the dwelling: To obtain this total, we subtract the autoproduction of electricity (if any) from the final energy consumed and add transformation losses. Primary energy is the energy taken directly from the earth, before any transformation.

According to the Grand-Ducal Regulation amended on 1 July 2012, a residential building is a building in which at least 90% of the ERS is used for residential purposes. And since 1 January 2011, the Energy Performance Certificate (EPC) has been mandatory for all new buildings. Functional buildings are reference buildings for the calculation of energy performance.

Here are some multiple-choice questions about the Energy Performance Certificate:

Question 1: What information is provided by the energy performance level in the energy pass?
- a) Water consumption of the building
- b) Potential energy savings
- c) Greenhouse gas emissions
- d) Moisture content of the building

_Answer: c) Greenhouse gas emissions_

Question 2: What is the Energy Reference Area (ERA) in the energy certificate?
- a) The total surface area of the building
- b) The heated area of the building
- c) The non habitable area of the building
- d) The surface area of the building's external walls

_Answer: b) The heated surface of the building_

Question 3: What is the main objective of the energy performance certificate for residential buildings?
- a) To encourage owners to invest in insulation
- b) Set rental prices for properties
- c) To determine the market value of properties
- d) To provide information on the size of dwellings

_Answer: a) Encourage homeowners to invest in insulation_

Question 4: What is the common unit of measurement for energy consumption in the Energy Performance Certificate?
- a) Kilowatt hour (kWh)
- b) Joule (J)
- c) calorie (cal)
- d) watt (W)

_Answer: a) kilowatt-hour (kWh)_

Question 5: What does the acronym EPC mean in the context of the energy pass?
- a) Energy performance calculation
- b) Energy Performance Certificate
- c) Energy Performance Rating
- d) Energy Performance Consumption

_Answer: b) Energy Performance Certificate_

Question 6: What information is provided by the final energy demand in the energy performance certificate?
- a) Total energy consumption of the building
- b) The target temperature of the building
- c) The number of electrical appliances in the building
- d) The cost of the energy used

_Answer: a) Total energy consumption of the building_

Question 7: What does European Directive 2002/91/EC recommend for residential buildings?
- a) Ban the construction of new residential buildings
- b) Reduce the energy consumption of existing buildings
- c) Increase energy costs for residential buildings
- d) reduce the size of residential buildings

_Answer: b) Reducing the energy consumption of existing buildings_

Question 8: What information is provided by the insulation class in the energy certificate?
- a) The energy savings achieved by the insulation
- b) The materials used to insulate the walls
- c) The recommended indoor temperatures
- d) The efficiency of the heating system

_Answer: b) Materials used for wall insulation_

Question 9: What does the acronym ERS mean in the context of the Energy Performance Certificate?
- a) Ecological Reference Surface
- b) Energy Repair Surface
- c) Energy Reflection Surface
- d) Energy Reference Surface

_Answer: d) Energy Reference Surface_

Question 10: What information is provided by the energy performance class in the energy certificate?
- a) Annual energy costs
- b) The efficiency of the heating system
- c) The level of thermal insulation of the building
- d) The estimated lifetime of the building

_Answer: c) The level of thermal insulation of the building_

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