Landlords / Rental agencies

In July 2016, the New Zealand Government implemented amendments to the Residential Tenancies Act which affect all rental properties. This move follows trials based on a broad package of ‘Warrant of Fitness’ standards. It was deemed that a full Warrant of Fitness would be expensive both to implement and administer. Therefore, the RTA is focused on the essentials, which have proven benefits to the health and comfort of tenants. The two key measures that will be introduced are smoke alarms and insulation.

Why are these measures being introduced?

These measures are being introduced because New Zealand has the highest rates of asthma and respiratory illness in the world, caused primarily by poor housing conditions.

Insulation is well-known to have the largest impact on the thermal performance of a home. Insulation can make it more energy efficient, more comfortable and healthier for tenants meaning they will stay longer.

Will my rental property need upgrading?

All rental properties will require the installation of insulation by July 2019.
All rentals will require adequate ceiling and underfloor insulation, as long as they are accessible, i.e. Under floors with no crawl space are currently exempt. If your rental was built before 1977 and is still in its original state, it most likely won’t have any insulation installed. Homes built after 1977 may require an insulation top-up to bring the performance levels up to modern standards. Insulation must also be in good condition, otherwise it will need repairing or replacing. Contact us now for a free assessment

How much will the insulation cost?

The average cost of retrofitting both ceiling and floor insulation is approximately $3000 (including GST).

Do you supply me with an insulation statement?

Yes, Insultech insulation will provide you with a statement of insulation upon completion of any insulation work by us free of charge for your tenancy records.

Ive got insulation already, can I get a statement?

Yes, Insultech insulation is happy to provide you with a statement of insulation without us doing an install. There is a small charge for this depending on where you are located around the country.

How much insulation will I need?

Insultech Insulation recommends landlords and property managers meet or exceed the following levels to future-proof the property from the table below
Increasing the levels of insulation can contribute to a warmer and drier home, reduce the chance of mould, which can damage tenant’s health and the property.

The map below illustrates the climate zones that the table refers to, with Zone 1 being the warmest areas and Zone 3 the coldest.

zone-table

Table taken from: https://tenancy.govt.nz/maintenance-and-inspections/insulation/

What will happen if my property does not comply?

The Ministry of Business, Innovation and Employment (MBIE) are able to take direct action against landlords in cases where there is significant risk to tenant health and safety. Where a tenant considers a property to be sub-standard, they will be able to take their cases to the Tenancy Tribunal, whom in turn can authorize work orders and award damages of up to $4000. Don’t risk letting it get to that stage – it’s simple enough to ensure your property or portfolio is in compliance.