The rental property landscape is undergoing significant reform. In a bid to improve living conditions and quality of life, we are witnessing rapid changes to the responsibilities of property owners and investors. We caught up with Rana Summers, Healthy Homes Project Manager at Quinovic Parnell, to find out how property owners are progressing with the Healthy Homes Standards.
The Healthy Homes Standards became law on 1 July 2019. The legislation introduced minimum standards for heating, ventilation, insulation, draught stopping, and moisture ingress and drainage. These standards aim to improve the quality of rental properties and ensure they are maintained to be warm and dry. By 1 July 2024, all private rental homes in New Zealand must comply with the Healthy Homes Standards.
Although improving the standard of rental properties may sound like a straightforward task, there continue to be misconceptions surrounding compliance.
Many presume that new builds are built to these standards already, as they are code compliant. However, the Healthy Homes rules are different; all properties should be assessed to ensure they comply with the new standards as many new builds, while being passed by council, have fallen short of Healthy Homes standards.
Many property owners believe the heating in their property is up to standard without undergoing a formal assessment. The Healthy Homes Standards have specific requirements, and it is always better to have this confirmed. You should use the Tenancy Services Heating Assessment Tool to get some insights into your particular property.
Not always. Heat pump installers may not be aware of the specific Healthy Homes requirements. As a rental property owner, the best thing you can do is use the Heating Assessment Tool and reach out to a professional property manager. It’s always best to ask your installer to put anything to do with compliance in writing as written evidence is a requirement for Healthy Homes compliance.
It’s not uncommon for rental property owners to take matters into their own hands when it comes to required Healthy Homes compliance. However, properties should undergo a formal assessment to establish what work needs to be done. Many different companies can do assessments, but not all of them do them well. The important thing is to verify the assessor’s experience and credentials.
The last thing you want to do is go ahead with installing heaters or heat pumps in your property to discover later the model you installed does not comply with the Healthy Homes Standard. Rana noted that this does happen, and the best way to avoid this is to undergo a thorough heating assessment, ideally with a credible assessor. It’s also important to consider the next steps for your own property and discuss any questions you have with your property manager or the Healthy Homes assessor. If your property requires work to meet the standards, a professional property manager will be able to help you determine the best and most cost-effective solution.
Hot tip: A good property manager will ensure Healthy Homes assessments are done by a reputable and experienced assessor and ensure your property complies with the standards.
Since the legislation was introduced, heat pumps and extractor fans have continued to rise in price. Heat pumps are becoming harder to source. In some instances, the lead time on sourcing a heat pump is more than 90 days which will be an issue as any new tenancy must be compliant within 90 days of the tenancy starting.. The skills shortage is also making it harder to find a contractor to install the new fixtures.
It can be tempting to put off these tasks, whether you’re protecting your cash flow or just don’t know where to start. It’s important to note too that the deadline for compliance isn’t set in stone. It’s entirely possible that your tenant, regardless of the length of tenancy, could give you 28 days notice they are moving out. In this situation, your property must comply with all aspects of Healthy Homes within 90 days of the new tenancy start date.
Healthy Homes compliance is inevitable, and the advice is to start now if you haven’t already.
If a property is not compliant with the Healthy Homes Standards, anyone living in a rental property has the right to take the matter to the Tenancy Tribunal, which could result in the landlord being fined up to $7,200
Individuals may be more likely to leave a tenancy due to non-compliance. Once they leave, the property must meet the requirements within 90 days of a new tenancy commencing. This could put significant stress on finances, with income lost and money paid out on getting compliant in a hurry.
According to studies, Healthy Homes compliance throughout the country for professionally managed rental properties is sitting around 50%. This figure is much lower amongst owner-managed properties. So, what are the obstacles for property owners?
A good property manager can tell you if quotes are reasonable when compared with the current market and industry standards.
Property managers can assist you in ensuring work is done promptly. This is essential when you’re dealing with a 90-day compliance timeframe.
Rana recalls a client who enlisted his own contractor to complete the work. These contractors did not have the most up-to-date requirements, which ultimately resulted in the work being done twice. A good property manager will know the Healthy Homes Standards in detail. Consulting with a professional ensures you will get it right the first time.
If you have any questions about the Healthy Homes Standards and what this means for you, get in touch with your local Quinovic office. We’re a nationwide team of property management experts and have managed over 100,000 tenancies since 1988. No matter how big or small your question is, we’ll be happy to help. Ask Quinovic today.
