Landlord Information Guide - 360 Property Management
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Landlord Information Guide
Welcome
Choosing to have your property professionally managed is
a big commitment.
Property management is so much more than coordinating
tenancies and rental payments. The role is a unique balance
between helping landlords achieve their financial goals and
ensuring they also honour their many legal obligations.
As our industry sees ever-increasing layers of compliance
and legislation, you need to trust you have the right people on
board, with the right skills and knowledge to keep you safe.
This guide provides a comprehensive overview of the key
issues that relate to managing tenancies and will highlight why
a Ray White property manager is the person best equipped to
look after your needs.
Ray White understands the importance of educating those involved in the property management
process to achieve better long-term outcomes for all. We've developed a series of information
guides for both landlords and tenants to ensure all of our clients have access to the most up-to-date
information. Talk to your local Ray White property manager if you'd like to find out more.
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Contents
03 / Welcome 32/ Smoke Alarm Requirements
06 / What Kind of
Landlord Are You? 34/ Methamphetamine
07 / Your Landlord Journey 37/ Health & Safety
08/ Getting Your Property
Ready to Rent 38/ Asbestos
11/ The Property Management
Process 40/ Landlords’ Obligations -
The Law & The Act
19/ Property Management
Legislation 44/ Why Choose Us?
20 / Healthy Homes Standards 50/ Frequently Asked Questions
30/ Residential Tenancies
Amendment Act 2019 54/ Top 10 Tips For Adding Value
to Your Investment
5
What Kind of
Landlord Are You?
We understand that every landlord is unique. You’re likely to have very specific
needs, investment motivations and expectations of any property manager who may
look after your investment in the future.
There is no such thing as a ‘one size fits all’ • Have you ever used the services of a
mentality when it comes to investing in property property manager before, and if so what
and this is what we instill in all our property did they do well and what could they have
managers. improved upon to suit your needs better?
Communication between all parties is key, and we • Do you have an investment goal or strategy?
believe this is one of the most important tools for • Are you interested in ongoing advice on
us to effectively look after your investment in a how to grow your investment portfolio?
way that suits you. • Who would you like us to contact in an
For this reason, we like to discuss the following emergency situation if we are unable
questions to help us customise our service to reach you?
to your requirements. This helps ensure • Do you prefer a low or high level of
expectations are set and continue to be met communication from us around minor
throughout our working relationship. issues or updates?
• What is most important to you in respect • Do you understand the importance of
of how your property is managed? ongoing property maintenance and how
this can affect your investment return?
• How often would you like to hear from
your property manager? • Do you have a landlord insurance policy?
• How would you prefer us to contact you? • Are you familiar with your health and
Phone, email or text? safety obligations as a PCBU under the
Health and Safety at Work Act?
• Are there any chattels at the property
we need to be aware of or chattels • Do you understand the legislative
you are considering adding? requirements that will impact on the minimum
standard of your investment property both
• Do you have any concerns around
now and in the future? Are you prepared to
the management of your property,
manage these changes and any associated
now or in the future?
compliance costs they may bring?
6
Your
Landlord Journey
There are many different steps involved with your landlord journey, and each step
can vary slightly depending on the specific process or software that an office may
have in place.
A Ray White property manager should provide Clear communication and setting the right
you with an outline of your future landlord expectations is a key element to any successful
journey and explain to you what may occur at relationship. We encourage you to ask questions
each step, so you’re aware of everything you and let us know if there is anything you’re
need to know. unsure of.
Maintenance
11
Management
Agreement & Induction
4 Feedback
& Survey 10 12 Arrears
1 3 5 9 Monthly
Statement
13 17 Bond Refund
Process
Initial Legislation Disputes Routine
Contact Compliance Resolution Inspections
(Overview)
2 Property
Marketing 6 8 Initial
Inspection 14 Lease
Renewal 16 Final
Inspection
& Viewing Monthly
Appraisal Statement
& Meeting
7 15
Application Tenant Vacating
Vetting & Approval Process 3
7
Getting Your Property
Ready to Rent
The key to achieving the best return from your investment property is by looking at
the whole process in a business-like manner.
This means making sure the property is clean,
Are all appliances, fittings,
tidy and functional before being made available to
tenants, as well as ensuring it is compliant and up- fixtures & chattels in
to-date with all current regulations. good working order?
When your property is well-presented it helps us Possibly, one of the most common areas
secure you the best possible tenants in the shortest of surprise for landlords is the amount of
possible time frame, so it pays to have everything maintenance that is required in the initial stages
ready to go. of a tenancy. This is often caused by a lack of
understanding around what is legally required.
We ask that you consider the following questions
when considering having your investment Any chattel provided with the property must be
property rented and managed: in working order. This can include such things as:
oven, dishwasher, fridge, door handles, window
Would your property be considered handles, garage doors, taps, wardrobe doors,
incinerators, alarms, drainage, clotheslines, light
'reasonably clean'?
bulbs - the list goes on. Ensuring this is done prior
The Residential Tenancies Act 1986 (the Act) to the start of a tenancy can save you time and
requires a property to be provided and left money.
‘reasonably clean', however, this can mean vastly
different things to different people. For this Are the grounds & gardens
reason, we prefer to help set high expectations
well maintained, or at the
and standards for both our landlords and tenants
in order to achieve better long-term outcomes. very least usable?
This includes recommending that all properties Unless otherwise stated, general lawn and
are professionally cleaned prior to advertising. garden maintenance is the responsibility of the
tenant. Ensuring these are well-maintained
Does your property meet the throughout the initial viewing process helps
expectations of the market? secure the best possible tenants and sets the
standard for ongoing maintenance.
Think about how your investment compares to
those currently available and how this aligns with
your own price expectations. Do the features
and benefits of your property stack up against
the competition and target market for the area in
which it is situated?
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We recommend that all investors ask questions,
Does the property comply with
seek advice and ensure their requirements and
current regulations & laws? obligations are being met. If you are unsure or
The tenancy landscape in New Zealand continues have further questions, contact a Ray White
to evolve, with new layers of legislation and property manager to find out more.
compliance changing the way landlords must You can also find more detailed information
undertake their business. These layers outline on your legislative requirements under the
the rules for managing tenancies, as well as legislation section of this guide on page 19.
minimum standards relating to the quality of
any property made available for rent. Landlords
must ensure their property is safe, fit to rent and
approved by their local council for long term,
habitable accommodation.
It’s important to understand there are many
rules and requirements that landlords must now
adhere to. Ignoring these can potentially pose a
threat to any inhabitants of the property, as well
as creating a risk of potential and significant fines
for non-compliance.
Some key legislation that currently has a direct
relationship to property management and rental
dwellings include (but are not limited to):
• Residential Tenancies Amendments Act 2019
• Healthy Homes Guarantee Act 2017
• Residential Tenancies (Smoke Alarms and
Insulation) Regulations 2016
• Health and Safety at Work (Asbestos)
Regulations 2016
• Building (Pools) Amendment Act 2016
• Health and Safety at Work Act 2015
• Building Act 2004
• Residential Tenancies Act 1986
• Health Act 1956
• Housing Improvement Regulations 1947
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10
Legislative
compliance
End of Setting
tenancy the rent
Repairs and Marketing
maintenance your property
The
property
management
Inspections process Tenant selection
Tenancy agreement
Rent collection and bond
The Property
Management Process
Legislative compliance
One of the first steps in the property As a landlord, you must also ensure your
management process is to ensure you are up-to property is safe, fit to rent and approved by
date and aware of the many layers of legislation your local council for longer term habitable
that you must comply with. Generally speaking, accommodation. For more information see our
these relate to minimum standards placed on legislation section of this guide (page 19).
the property being made available for rent and
can impact your requirements around heating,
insulation, ventilation, smoke alarms and more.
11Setting the rent Marketing your property
Our goal is to help you capitalise on your We put a strong focus on securing the highest
investment and ensure you receive the highest quality tenants for our landlords through the use
possible market rent. of proven marketing techniques and rigorous
tenant selection procedures. This includes
We look at many important factors when
promoting your property through the following
advising our landlords on a suitable rental
marketing channels:
figure, including:
• The number of similar properties currently Internet
available and how this will affect demand
Advertising your property online allows us
• The advertised prices of comparable properties
to reach potential tenants on a 24/7 basis.
and how long these have remained available
Furthermore, if a current tenant gives notice
• Current rental demand and external factors to vacate we are able to display your property
that may affect demand during the online almost immediately, maximising exposure
advertising process to the market and minimising vacancy periods for
• Statistical data such as rental statistics, our landlords.
released through the Ministry of Business,
Your rental property is advertised on the
Innovation and Employment.
following sites:
Once the rent has been set, we closely monitor
• Trademe.co.nz
the market response. If an adjustment is needed,
this is discussed with you before any change is • Realestate.co.nz
made. • Raywhite.com
Rent reviews should ideally be conducted every • Raywhite.co.nz (and local office website).
12 months or so to ensure rent is kept at market We can simultaneously load your property listing
levels. Landlords are notified of our advice in onto a minimum of four different online portals.
respect of any rent review before adjustments In some cases (such as TradeMe), the property is
are made. The choice to update an existing advertised online within minutes of being loaded
rental figure is ultimately at the discretion of the into our exclusive MyDesktop system. This gives
landlord. us a distinct timing advantage because with some
If a rent increase to market level is agreed upon, businesses this process often takes anywhere
tenants must be provided with no less than 60 from 12-24 hours.
days’ written notice. In a fixed-term tenancy,
landlords can only increase rent if there is a
specific provision to do so in the fixed-term
tenancy agreement.
12Rental listing brochure Tenant selection
Many offices still use a weekly ‘For Rent’ brochure Getting the right tenant is arguably the most
with great success. This includes photos and important part of the tenancy process. Landlords
information about properties currently available. require a tenant who is stable, respectful of the
It is displayed prominently in the office for property and financially sound. We combine our
prospective tenants, and walk-in enquiries. considerable experience with comprehensive
tenant checks to ensure any risks associated in
Tenant databases tenant selection are greatly reduced.
We ensure the details of any high-quality The process involves:
applicants are kept and added to a prospective
• Meeting all prospective tenants at the property.
tenant database so when a new property
becomes available a tenant and property can be • Ensuring every applicant completes a
matched immediately. detailed application form, including providing
numerous references and emergency contact
By having access to this database we can numbers. Please note that all Ray White
minimise vacancy periods. application processes are in accordance
with 2019 Privacy Commission Guidelines
Walk-in enquiries & referrals • Conducting credit checks and tenant
The size of our national network and our database checks through a reputable
reputation in the marketplace means that we agency to get confirmation of a prospective
receive a large number of walk-in enquiries at tenant’s credit and rental history
our various locations. • Conducting thorough checks on every
With more than 130 offices in New Zealand applicant’s history, which can include
currently providing property management employment verification, landlord references,
services, prospective tenants can easily speak driver’s licence details, and previous Ministry of
with a property manager in person, who can then Justice tribunal orders.
suggest a suitable rental property. If the property In addition to the checks listed above, our
manager does not have a fitting match, they can property managers also have the added benefit
contact other Ray White offices in the area to of skill and experience when it comes to selecting
help facilitate the process. This geographic reach a tenant - through meeting thousands of
and network of tenants greatly benefits our prospective tenants every year. This exposure
landlords by minimising vacancies, and therefore can prove invaluable and it hones our skill (and
increasing the return on their investments. 'gut-instinct') in assessing prospective tenants.
13The tenancy agreement, Rent collection & arrears
bond & initial inspection We understand your investment is a business
transaction and loss of income can cause not
The tenancy agreement only financial strain, but also personal stress.
Therefore, we have a zero tolerance policy for
As each property and tenancy situation is unique,
rent arrears and do not tolerate late or missed
we do not use generic tenancy agreements.
payments by our tenants. This policy is carefully
Instead, all Ray White offices utilise a specific
explained to all tenants at the start of the tenancy
tenancy agreement software system which
to avoid any misunderstandings that may arise at
adapts and changes in real-time to the many
a later date.
movements in legislation and compliance that we
continue to see. All initial rent payments are due prior to the start
of the tenancy, with automatic payments being
The use of this system provides a distinct added
the most common payment method to ensure
layer of protection for our landlords as incorrect
the security and timing of each and every future
agreements, or those that are lacking important
rental payment. Rental payments are reconciled
clauses, can create major headaches, risks, and
and allocated daily.
financial implications.
In the event that a tenant does miss a payment,
Landlords who wish to self-manage their
then the following steps are taken:
property should be particularly careful in
regards to the agreement templates used. We • We will immediately contact the tenant by
recommend you seek out the professional phone or text to request the funds in arrears be
letting service of a Ray White property manager paid right away and a 14-day notice of breach
and take advantage of our comprehensive letter is issued
credit checking systems and secure up-to-date
• If payment is not received after contact has
documentation packages.
been made and a breach notice sent, then an
application is made to the Tenancy Tribunal for
Bond a mediated hearing. This will enable a monetary
The Act allows for a maximum of four weeks court order to be granted against the tenant(s)
rent to be collected from the tenant as a bond and in some cases, possession of the property
against the property. A Ray White office has a will be requested.
responsibility to ensure that all bonds received At all times our staff are proactive in keeping on
are then lodged with the Ministry of Business, top of errant tenants. However, if you wish to find
Innovation and Employment (bond centre), out more about an office's specific arrears policy,
within the required timeframe. please contact your property manager directly.
14Inspections Repairs & maintenance
To safeguard your investment, our property Our aim is to return as much of the rental
managers follow a systematic inspection income to you as possible, however, at times,
programme, outlined below. Once a routine maintenance must be carried out. This is just as
inspection has taken place you will be provided true for your investment property as it is for your
with a comprehensive report highlighting own home.
any maintenance or issues that may require
Providing ongoing care and maintenance to a
attention.
property is in the best interests of all landlords.
Regular property inspections are crucial in It helps ensure rental levels remain consistently
safeguarding your property and are the most high in relation to the market, and that quality
effective way of ensuring tenants are meeting tenants are attracted to the property.
their expectations - as outlined in their tenancy
If we do not complete required maintenance
agreement.
on your property in a timely manner there is
Moving in a chance that smaller problems will become
more serious and costly. This can also affect
All landlords are given a full property inspection our obligations as outlined in the Act regarding
report that is completed prior to tenants moving maintenance of the property.
into the property. This initial inspection ensures
the condition of the property is accurately Repairs to your property are undertaken knowing
recorded for future reference. that you have usually pre-approved a maximum
disbursement level. Where possible, you will be
Ray White property managers are advised consulted prior to any repairs and maintenance
to support the written report with a suite of being undertaken over and above this level.
photos as additional documentation of the
property’s condition at the start of the tenancy. Please be mindful that in some situations
This information is essential in order to track the ‘urgent’ or ‘emergency’ repairs, as outlined in the
ongoing state of the property and can also be used Residential Tenancies Act 1986, may require us
in case of any disputes. to act before your permission is gained in order
to ensure our joint obligations are met.
Routine inspections Ultimately, we will not spend a single dollar on
Routine inspections are generally carried out every your property without your permission unless
three months, and not less than four times per year. there is a sound and justifiable or legal reason
Most home and contents insurance policies require to do so.
a specific number of inspections to be completed
annually. We advise all landlords check their policy
wording and advise their property manager of the
frequency of inspections so as not to void their policy.
Moving out
When a tenant vacates a property, a detailed final
inspection is always completed prior to any bond
being released back to the tenant. This inspection
report and associated photos are compared to
all initial inspection findings and landlords are
advised immediately of any possible disputes,
changes, or damages that may need to be rectified.
15Once a tenant has vacated and the final
The end of the tenancy inspection has been completed, we will ensure
When a property manager receives notification the bond refund is processed and any final
that a tenant wishes to vacate the property we deductions for rent, utilities or damage are
will confirm the details in writing to you, clearlycovered.
outlining the next steps necessary to ensure your In rare occurrences where the bond does not
property is tenanted as quickly as possible. cover any outstanding amounts due, your
Your property will be listed as available for rent property manager will lodge the debt with
immediately unless otherwise advised by you - the Tenancy Tribunal and seek to recoup the
(see ‘Marketing your property’ page 12). outstanding funds through a sealed District
Court order. Any associated debt collection work
We will also take care of all the documentation
that may be required will also be initiated.
necessary to end the tenancy and will arrange
to work in with the existing tenant (if applicable)
for any property viewings for new prospective
RTA Amendments Act 2019
tenants. The RTA Amendments Act 2019 has
implemented much clearer guidelines for
A final inspection will be carried out to ensure
landlords and tenants around who is responsible
your property has been left in good condition,
for damage caused through careless behaviour,
taking into consideration fair wear and tear
as this can sometimes be an issue at the end of a
for which a tenant cannot be held liable - see
tenancy.
examples below.
If a tenant damages a rental property as a result
Common examples of fair wear and tear
of careless behaviour they will be liable for the
where tenants are generally not liable include:
cost of the damage up to a maximum of four
• Faded curtains or frayed cords weeks’ rent or the landlord’s insurance excess,
• Furniture indentations and traffic marks on whichever is lower.
carpets Landlords will need to provide insurance
• Scuffed wooden floors information in any new tenancy agreement via
• Faded or cracked paint an insurance statement. This outlines whether
• Loose hinges or handles on doors or windows, the property is insured and if so, what the excess
and worn sliding tracks amount is. The statement must also inform the
tenant that a copy of their insurance policy is
• Cracks in the walls from building movement
available upon request.
• Water stains on the carpet from rain leaking
through the roof or bad plumbing. Insurance companies will not be able to pursue
tenants on the landlord’s behalf for the cost of
Damage for which the tenants may be liable damage unless the damage was intentional or the
• Missing, damaged or torn curtains - either result of an act or omission that constitutes an
caused by the tenant or their pet/s imprisonable offence.
• Stains or burn marks on carpets
Insurance
• Badly scratched or gouged wooden floors
• Unapproved paint jobs or large areas of Many investors believe they have adequate cover
damage e.g. from posters being ripped off walls under their current insurance policy, only to find
at the point of making a claim that all is not what
• Broken window glass e.g. from a flatmate or
it seems.
child hitting a ball at the window
• Holes in the walls left by tenants removing Every landlord insurance policy will likely contain
picture hooks or shelves they have installed unique requirements and it’s crucial you are
aware of what these are, e.g. in a damage claim
• Water stains on the carpet caused by an
you’ll likely be required to show evidence of the
overflowing bath or indoor pot plants.
regular inspections you have carried out at set
intervals.
16It’s important to ensure you have the right cover Fixed-term tenancy
against all possible outcomes (including loss of A fixed-term tenancy guarantees the property to
rent, damage, abandonment etc), and often a your tenant for the term outlined in the tenancy
simple extension to your existing policy may be all
agreement and supersedes the sale of the
that is required. property or the owner or family members moving
back into the property. For example, should
Through the use of a Ray White property
the property be sold, and the buyer wishes to
manager, landlords can access specific and robust
occupy the home, they may not move in until
insurance policies that are only available to
the completion of the tenancy, unless the tenant
those who use an accredited property manager.
agrees otherwise.
These can cover specific tenancy-related issues
such as loss of rent due to arrears, tenancy
abandonment, intentional malicious damage etc,
as well as other benefits such as lower or less
frequent excess costs than can be found in many
generic landlord insurance policies.
Investors who utilise a Ray White property
manager can rest assured they have access to the
best possible cover for any unfortunate situation.
It’s just one of the many benefits that come with
having your property professionally managed.
Selling or moving back into
your property
Circumstances can change and at any time you
may need to sell or move back into your property.
As each tenancy agreement is different, it is
essential that landlords advise us as soon as
possible of any change in their situation so that
the appropriate and required notice is provided
to the tenant.
Periodic tenancy
A periodic tenancy can be terminated so long as
the correct notice is provided to the tenant.
In the case of a property sale, the tenant must be
given 42 days’ written notice to vacate (allowing
an extra four days for delivery of the notice), and
only once the sale of the property has become
unconditional.
Should the landlord or a family member wish to
move back into the property, 42 days’ written
notice must also be provided to the tenant.
It is worthwhile to note a property owned by a
family trust or company (LTC) cannot have ‘family’
members by its very nature. Where ownership is
by way of these entities, 90 days’ notice in writing
is required.
In all other cases, the landlord must give the
tenant a minimum of 90 days’ notice to terminate
a periodic tenancy. 1718
Property Management
Legislation
The rental landscape in New Zealand continues to change, with new rules coming
into force around how we manage our tenancies and the quality of properties that
are provided for rent. The rules in place apply equally to both property managers
and private landlords, so it’s important that everyone involved in renting property
stays up-to-date.
Managing a tenancy is now heavily compliance • Requirements for landlord insurance
based and there can be significant penalties for information to be provided to tenants and
those landlords not managing everything that is included within any tenancy agreement
required. • Smoke alarm requirements for every
While many New Zealand landlords choose to property where both landlords and
self-manage their investment properties, they tenants have their own responsibilities
often do so without fully understanding the risks • Insurance changes and requirements that
involved with non-compliance, which can be could affect your claims and cover, even
significant and costly. if you think you have a policy in place
Although the legislative goal posts continue to • Methamphetamine and the current risks
move, there are many clear-cut areas in which that still exist, no matter what may be
every landlord should already know the facts. published in the media or what you may
These relate to your pre-existing obligations and already have understood around the issue
other non-legislative issues you should consider • Health and safety requirements for all
carefully. These issues can include, but are not landlords that relate to property hazard
limited to: identification, vetting and qualification
of tradespeople, asbestos identification
• Minimum insulation standards for
and other issues of this type.
all properties and specific details
required on all tenancy agreements All information in this guide pertaining to your
legislative requirements is correct at the time
• Minimum requirements for all rental properties
of printing (October 2019). We recommend
in respect of heating, insulation, ventilation,
you speak to your Ray White property manager
draught stopping, moisture ingress
to find out more, as changes in our industry
and drainage
frequently occur.
19Healthy Homes
Standards
The healthy homes standards will make significant changes to the quality of New
Zealand rental accommodation and bring with them long-term positive impacts for
both tenants and landlords alike. Tenants will experience the benefits that come
from living in a warmer, drier home and landlords can expect lower long-term
maintenance costs, by raising the quality of their property.
The standards create specific and minimum Landlords must ensure they are aware of their
requirements for all rental properties in respect requirements in order to prevent the risk of
of heating, insulation, ventilation, draught future penalties. At any stage you can seek
stopping, moisture ingress and drainage. further details from your Ray White property
manager or by visiting tenancy.govt.nz
There is significant detail to each standard
and they lay out clearly what is required of all
landlords both in respect of the rental property
itself, and reporting of this detail within any
tenancy agreement.
Overview of the Standards
Heating Moisture and drainage
There must be one or more fixed heater(s) that There must be adequate drainage, guttering
can directly heat the main living room to at least and downpipes. Rental properties that have an
18°C. Certain heating devices that are inefficient, enclosed subfloor must have a ground moisture
unaffordable or unhealthy will not meet the barrier (if it’s possible to install one).
requirements of this standard.
Draught stopping
Insulation
Landlords must block any unreasonable gaps
Some existing insulation will need to be topped and holes in walls, ceilings, windows, floors and
up or replaced. Depending on location, ceiling doors that cause draughts. Open fireplaces must
insulation needs to meet minimum R-values, or be blocked unless the tenant and landlord agree
existing ceiling insulation needs to be at least otherwise.
120mm thick. Underfloor insulation needs a
minimum R-value of 1.3.
Ventilation
There must be windows, skylights or doors that
open to the outside in the living room, dining
room, kitchen and bedrooms. These must be able
to be fixed in the open position and comprise at
least five per cent of the room’s floor area. There
must be extractor fans in kitchens and bathrooms
20
that vent to the outside.Compliance timeframes
There are already legal requirements for the If you have a long-term existing tenancy in place
healthy home standards in place, however, where no renewals have occurred, you will still
landlords must meet all other minimum be required to meet the standards, no later
standards within 90 days of the start of any new than 1 July 2024. See below for the complete
or renewed tenancy from 1 July 2021. compliance timeframe.
1 July 2019
• Ceiling and underfloor insulation is
compulsory in all rental properties
where it is reasonably practicable
to install.
• All new or renewed tenancy agreements
must include a signed statement that
the landlord will comply with the healthy
homes standards as required by the
Residential Tenancies Act 1986.
• Landlords must keep relevant
documents as evidence of compliance
1 July 2020
with the healthy homes standards.
• All new or renewed tenancy
• Landlords can give a minimum of 24
agreements must include specific
hours’ notice to access their rental
information about the property’s
properties for the purpose of complying
current level of compliance with the
with the healthy homes standards.
healthy homes standards. This isn’t
required if the tenancy is a fixed term
1 July 2021 that ends before the healthy homes
compliance date for the tenancy.
• All private rental properties must Details on the information required
comply with the healthy homes in this situation is covered under the
standards within 90 days of a new ‘tenancy agreements’ heading within
or renewed tenancy (e.g. any rental this section.
property owned by a private landlord).
1 July 2024
• All rental properties must comply
with the healthy homes standards.
21What if there is an existing heater?
Heating Landlords don’t need to add more heating if they
Landlords must provide one or more fixed- have one or more existing heaters that:
heaters that can directly heat the main living • Were installed before 1 July 2019
room to a maintained temperature of at least • Each have a heating-capacity greater than
18°C all year round. 2.4kW
• Meet the general requirements for heaters
How do you define a living room?
as outlined earlier in this section
A living room is a room that is used for general
everyday living. It can be a lounge, dining room, • Have a combined total heating capacity that
sitting room or family room. If there is more is at least 90 percent of what is required.
than one living room, only the main (largest) This only applies to heating devices installed
living room requires heating. Open plan areas before 1 July 2019. When the heater needs
are considered one space and will need an replacing, it must be replaced with one that
appropriately sized heater for that space. meets all the requirements of the heating
standard.
How do we know what size heater is required?
An online heating assessment tool is available Can we top up existing heating sources?
at tenancy.govt.nz/heating-tool. The tool asks a If the existing heating doesn’t have the required
series of questions about: heating capacity, landlords can add a smaller
fixed electric heater to ‘top up’ the heating. In
• What region the property is in (to take this situation, landlords must meet all of these
account of the local climate) conditions:
• How much space needs to be heated • The existing heating was installed before
• What surfaces (walls, ceilings, floors, windows, 1 July 2019
skylights and doors) heat can escape through • The required heating capacity is more
• How well these surfaces are insulated than 2.4 kW
• Whether walls, ceilings or floors are • The existing heating meets the general
external, internal or a mix. requirements for heaters
The tool provides a report that shows the • The ‘top up’ needed is 1.5 kW or less.
minimum heating capacity in kW required for For example, if you have a heat pump with a
each property. It can be used to check if the heating capacity of 3.3 kW, but you need a total
current heating will meet the standard or if it is heating capacity of 4.5 kW, you can add a fixed
necessary to install a new heater. 1.5 kW electric heater with a thermostat to meet
the standard.
What are the general requirements for heaters?
Heaters must: What are the exemptions to the heating
• Be located in the living room, or provide standard?
heat directly to the living room (e.g. through There are only two specific exemptions to the
a duct or vent) heating standard. These exemptions are:
• Be fixed to the home • Where it is not reasonably practicable to
install a qualifying heating device
• Have a heating capacity of at least 1.5kW
• Where the rental property is a certified
• Have a thermostat if it’s an electric heater passive building.
or heat pump.
It can be classed as not reasonably practicable
In most cases, new heating will need to be to install heating, providing any professional
installed by a licensed electrical worker or installer can’t access the area without:
registered gas fitter. Wood and pellet burners • Carrying out substantial building work, or
require consent for installation. • Causing substantial damage to the property, or
• Creating greater risks to a person’s health
and safety than is normally acceptable, or
• It is otherwise not practicable for a
22
professional installer to carry out the work.From 1 July 2021, which is the first compliance
Insulation date for the healthy homes standards that apply
Depending on what you may have done to meet to new or renewed tenancies, the minimum
the existing 2016 insulation requirements, some R-value allowable for ceiling and underfloor
existing insulation in rental properties will need insulation will increase for those properties that
to be topped up or replaced in order to comply had existing insulation as at 1 July 2016, and did
with the new healthy homes standards. not require upgrading at that time.
What are the requirements in place right now? A number of landlords with rental properties
There are existing obligations for all rental that had existing insulation at 1 July 2016 may
properties in respect of insulation and failure to not have needed to previously upgrade their
comply with these can result in penalties of up to insulation. Landlords of these properties (likely to
$4,000. have had insulation installed between 1978 and
2008) will now need to upgrade the insulation to
The 2016 insulation requirements state that meet the healthy homes standards.
ceiling and underfloor insulation must be
installed in rental homes since 1 July 2019 What are the healthy homes insulation
and every tenancy agreement must include a requirements?
compliant insulation statement. Existing rental Insulation requirements under the healthy homes
properties should already comply, however, if you standards are measured by R-value. Minimum
have recently purchased a new rental property required R-values vary across New Zealand, as
we strongly recommend adhering to the healthy shown in the map below.
homes insulation requirements outlined in this
guide, as you will be required to do so anyway.
What is the difference between the healthy
homes standards and existing insulation
requirements which became compulsory from
1 July 2019?
Landlords who installed all new insulation to
meet the 2016 insulation requirements should
meet the healthy homes standards as long as the
insulation is still in reasonable condition.
Insulation is not considered to be in a reasonable
condition if there are signs of damage. This could
include:
Zone 1 Ceiling R 2.9, underfloor R 1.3
• Dampness, mould, water damage
• Rips and tears Zone 2 Ceiling R 2.9, underfloor R 1.3
• Gaps in the insulation coverage, except
Zone 3 Ceiling R 3.3, underfloor R 1.3
where safety clearances are required
• Settlement or compression below
120mm of depth Insulation must be installed in accordance with
NZS 4246:2016 and must be in a reasonable
• Pests (eg rodents or insects) or bird nests condition, with no mould, dampness or gaps.
• Any other damage or contamination. If the insulation was installed prior to 2016, its
thickness can be assessed by manually measuring
existing ceiling insulation, which must be at least
120mm thick. Landlords can check whether they
need to upgrade insulation by using an online
insulation tool available at www.tenancy.govt.nz
23What are the exemptions to the insulation
standard? Ventilation
There are three specific exemptions to the The living room, dining room, kitchen and
insulation standard. These are: bedrooms of rental properties must have at least
Exemption where access is impracticable or one or more windows, doors or skylights that are
unsafe ‘openable’ i.e. that open to the outdoors, allow
This exemption covers properties where it is not the flow of air into and out of the property, and
reasonably practicable to install insulation. It is can be fixed in an open position.
not reasonably practicable to install insulation
if a professional installer can’t access the area The openable windows, doors or skylights must
without: be at least five percent of the floor area in each
respective room.
• Carrying out substantial building work, or
For the ventilation standard, all kitchens and
• Causing substantial damage to the property, or
bathrooms must have an extractor fan that
• Creating greater risks to a person’s health
ventilates to outdoors. The ‘kitchen’ is classed
and safety than is normally acceptable, or
as any room with an indoor cooktop and a
• It is otherwise not reasonably practicable for ‘bathroom’ is a room that has a bath or shower.
a professional installer to carry out the work.
The 2016 insulation requirements state that
For example:
ceiling and underfloor insulation must be
• There isn’t enough space for a professional to installed in rental homes since 1 July 2019
install insulation in the roof cavity or subfloor, or and every tenancy agreement must include a
• There is no cavity (e.g. concrete compliant insulation statement. Existing rental
slab foundations). properties should already comply, however, if you
Partial exemption for certain underfloor have recently purchased a new rental property
insulation we strongly recommend adhering to the healthy
This partial exemption applies to certain homes insulation requirements outlined in this
existing underfloor insulation that met certain guide, as you will be required to do so anyway.
requirements under an enactment or bylaw at What are the window requirements?
the time it was installed (e.g. when the property The total ‘openable area’ refers to the total area
was built or building work was carried out). of the internal side of the openable windows,
Landlords must have a copy of any compliance doors, or skylights, including the framing and
documents that shows the home met the joinery. This must be at least five percent of the
requirements of the time, i.e. code compliance floor area total for that particular space.
certificate, certificate of acceptance or another
What are the requirements for new extractor
relevant compliance document. If this insulation
fans?
is in reasonable condition it will meet the healthy
homes standards for underfloor insulation. Kitchen extractor fans: The fan and all ducting
must be at least 150 mm in diameter or the fan
Exemption for ceilings and floors where another with ducting must have an exhaust capacity of 50
domestic living space is directly above or below litres per second. A rangehood can be
This exemption applies if there is another suitable if it ventilates to the outside.
domestic living space immediately above
or below the rental property (e.g. another Bathroom extractor fans: The fan and all ducting
apartment). must be at least 120 mm in diameter, or the fan
with ducting must have an exhaust capacity of 25
litres per second. If there is more than one fan
installed in a kitchen or bathroom, at least one of
them needs to meet the requirements.
24If there is more than one kitchen or bathroom,
appropriately sized extractor fans must be Moisture and drainage
installed in all rooms with baths, showers or Rental properties must have efficient drainage
indoor cooktops. Landlords should ask installers for the removal of stormwater, surface water and
for the details of the fan diameters, ducting and groundwater, including an appropriate outfall. The
exhaust capacity in writing, so they can show they drainage system must include gutters, downpipes
are compliant with the healthy homes ventilation
and drains for the removal of water from the roof.
standard.
If the rental property has an enclosed subfloor, a
What are the requirements for existing ground moisture barrier must be installed if it is
extractor fans? reasonably practicable to do so.
Existing extractor fans installed before 1 July
What are the drainage and guttering
2019 must be in good working order and
requirements?
ventilate to the outdoors. These fans don’t need
A rental property must:
to meet the size or performance requirements.
• Efficiently drain storm water, surface water, and
What are the exemptions to the ventilation ground water to an appropriate outfall, and
standard? • Include appropriate gutters, downpipes,
There are two specific exemptions to the and drains to remove water from the roof.
ventilation standard. A room does not need to
When assessing a rental property, landlords
meet the requirements for openable windows
should ensure the following:
and external doors if it was lawful at the time it
was built or converted. • That gutters and downpipes are present
If a bathroom or kitchen does not have to carry away water from all parts of the
an extractor fan that meets the current roof and no roof water is being discharged
requirements at the start of the tenancy, onto the ground
the landlord will not be required to install an • That none of the gutters and downpipes
extractor fan if all of the following apply to that overflow during normal rainfall
room:
• That gutters have sufficient fall for water to
It is not reasonably practicable to install an flow into the connected downpipe - there
extractor fan must be no stagnant water
• When the room was built or converted, not • That gutters and downpipes are intact and
having an extractor fan was lawful; and fixed well to the home (not loose)
• If not having an extractor fan was lawful • That gutters and downpipes are not blocked
only because the room met alternative • That all downpipes direct water to an
ventilation requirements, the room
appropriate outfall, such as the storm water
still meets those requirements at the
system provided by the local council
commencement of the tenancy.
• No surface water rises from surrounding
It is not reasonably practicable to install extractor
fans if a professional installer can’t access the ground
area without: • No water can rise up through damaged brick,
concrete masonry, foundations or concrete
• Carrying out substantial building work, or
floor.
• Causing substantial damage to the property, or
• Creating greater risks to a person’s health
and safety than is normally acceptable, or
• It is otherwise not reasonably practicable for
a professional installer to carry out the work.
25What are the ground moisture barrier
requirements? Draught stopping
If a rental property has an enclosed subfloor, a Any unreasonable gaps or holes in walls, windows,
ground moisture barrier must be installed. This ceilings, floors and doors that cause noticeable
is generally a polythene sheet that can be bought draughts must be blocked. Landlords will have to
from most building retailers and can be installed block the fireplace or chimney of an open fireplace
by a landlord or a building professional. Ground unless the tenant and landlord agree otherwise.
moisture barriers must either:
When is a gap or hole unreasonable?
• Be a polythene sheet installed in accordance To determine if a gap or hole is unreasonable and
with section 8 of New Zealand Standard should be blocked, consider:
NZS 4246:20163, or
• The size and location of the gap or hole
• Have a vapour flow resistance of at least
50MNs/g and be installed by a professional • The extent of the draught that flows through
installer. the gap or hole
• If there is more than one gap or hole at the
What is classed as an enclosed subfloor space? premises, and the extent of the total draught
A subfloor space is enclosed if the airflow in and • The impact of a draught on heat loss from
out of the subfloor space is obstructed along at the property.
least 50% of the subfloor perimeter by:
Landlords can’t use the age and condition of the
• A masonry foundation wall property as a reason not to stop gaps or holes.
• Other claddings such as cement board or a Gaps or holes greater than 3 mm in width that
let air into or out of the home should be blocked.
solid timber skirt
Generally, if a New Zealand $2 coin can fit in the
• Attached structures, such as a garage or carport gap and unreasonable draughts pass through
• Earth or rock this space, then the gap needs to be filled. (Note:
• Any other solid obstruction to airflow. There are some situations where a gap may be
smaller than 3mm yet still create an unreasonable
The ground moisture barrier is required even if
draught and these situations should be assessed
the property has subfloor vents.
on a case by case basis).
What are the exemptions to the moisture and Examples of gaps or holes that should be blocked
drainage standard? include:
There is one specific exemption to the moisture
and drainage standard. This exemption covers • Poorly fitting windows or doors
properties where it is not reasonably practicable • Large gaps between the bottom of the door
to install a ground moisture barrier. This would and the floor
apply if a professional installer can’t access the • Broken or loose hinges, catches or latches that
area without: prevent the door or window closing tightly
• Carrying out substantial building work, or • Broken or poorly fitted pet doors
• Causing substantial damage to the property, or • Broken or cracked windows or doors.
• Creating greater risks to a person’s health
and safety than is normally acceptable, or
• It is otherwise not reasonably practicable for
a professional installer to carry out the work.
26General exemptions Keeping records
Outside of specific exemptions outlined per From 1 July 2019, landlords must keep records
each individual standard, there are also other of all documents which show how they are
general exemptions that may exempt a rental complying with the healthy homes standards.
property from complying with the healthy homes
standards. The level of detail, calculations and data that
• If the landlord intends to demolish the property is required to be held on each standard is
or substantially rebuild parts of the property significant. We recommend landlords consider
obtaining a professional healthy homes
and has applied for the relevant resource or
assessment to ensure this is done properly and to
building consent before the healthy homes
prevent the risk of future penalties.
compliance date. This exemption lasts for
up to 12 months from the healthy homes Relevant documents could include:
compliance date and may end earlier in • Code compliance certificate
certain circumstances. e.g. if the consent
• Records of calculations of a living room’s
lapses or is terminated, or the application
required heating capacity, including a
is refused. If requested, the landlord will
printout from the heating assessment tool
need to provide evidence that they have
applied for the relevant resource consent or • Certificate of acceptance
building consent for redevelopment work. • Receipts and invoices from builders or
• If the tenant is the immediate former owner tradespeople
of the rental property and the tenancy started • Receipts for any building materials
immediately after the landlord acquired the and/or elements
property from the tenant. In this situation, • Photographic evidence of compliance
an exemption will apply for 12 months • Records of work from building practitioners
from the date the tenancy commences. or independently qualified persons
• If a rental property is part of a building • A professional evaluation performed by a
and the landlord does not own the entire licenced building practitioner, independent
building (for example, if a landlord owns an qualified person or any other relevant
apartment). The landlord will be partially professional
exempt from complying with parts of
• Product manuals/schedules for devices
the healthy homes standards if their
installed for the purpose of compliance
ability to do so is impeded because:
with the standards
• They need to install or provide something
in a part of the building where the • Any other documents/records that will
landlord is not the sole owner, or reasonably show compliance.
• They need access to a part of the building These records must be able to be provided on
that they are not the sole owner of. request– for example, from the Tenancy Tribunal,
or the Tenancy Compliance and Investigations
Landlords must take all reasonable steps to
Team. Landlords are committing an unlawful act if
ensure any rental property or building complies
they don’t supply the records within 10 working
with the healthy homes standards to the greatest
days of the request.
extent, where it is reasonably practicable.
27From 1 July 2020
Tenancy agreements In addition to the signed statement of intent, by
As part of the healthy homes standards, there is this date, all new or renewed tenancy agreements
additional information that landlords must include must include more specific information about the
in new or renewed tenancy agreements. Fines landlord’s current level of compliance with the
can be incurred if landlords fail to include the healthy homes standards.
correct information, so it’s important to check Failure to include this information, or including
your documents to ensure you comply. information that is misleading or false will be an
unlawful act. Landlords that don’t comply could
From 1 July 2019 face a financial penalty of up to $500.
All new, renewed or varied tenancy agreements
must include a signed statement of intent. Failure This information, if it exists, must cover the points
to include and sign this statement from 1 July outlined in the table below. If the information
2019 can result in a financial penalty of up to doesn’t yet exist, as it’s before the healthy homes
$500. The statement of intent dictates that the compliance date for the property, the landlord
landlord will comply with the healthy homes can state that compliance isn’t required until the
standards, or potentially does already comply healthy homes compliance date.
(if applicable).
Standard Information required for 1 July 2020 statement
Heating • The type of acceptable heater in the main living room and its heating
capacity (in kilowatts).
• The required heating capacity for the main living room to reach at least 18°C.
• If a landlord relies on the tolerance or ‘top-up’ allowance for existing heaters,
they will need to state this, with a brief description of why it applies.
Insulation • The type, location and condition of all insulation in the walls, ceiling and
underfloor.
• For each ceiling insulated, either
• the insulation’s R-value and, if known, the date it was installed and when
it was last inspected, or
• the thickness of the insulation and, if known, the date when it was last
inspected.
• For each underfloor space the insulation’s R-value and, if known, the date it
was installed, and when it was last inspected.
• For each ceiling and suspended floor that isn’t insulated, the reason why not.
Ventilation • A statement that each habitable space in the premises has one or more
openable windows or doors (that meets the requirements detailed in the
ventilation section).
• The diameter or exhaust capacity of each extractor fan installed in any
kitchen or bathroom.
Moisture • A statement that the rental property has an efficient drainage system.
and drainage • Either, that the property does not have any enclosed subfloor spaces
or that each enclosed subfloor space has a ground moisture barrier.
Draught stopping • A statement that any open fireplace is either closed off, the chimney is
blocked, or that it isn’t blocked off, at the tenant’s written request.
• A statement that the property is free from unreasonable gaps that allow
draughts into the premises.
Exemptions • If one of the general exemptions applies, the landlord must
make a statement explaining the exemption and briefly
28 describe the circumstances that led to the exemption.29
Residential Tenancies
Amendment Act 2019
The Residential Tenancies Amendment Act was officially passed into law on
30 July 2019 and aims to address a number of long-standing issues faced by both
landlords and tenants.
The Act will affect both tenants and landlords, The statement in the tenancy agreement must
with the key updates being: also inform the tenant that a copy of their
• Addressing the liability for damage to a insurance policy is available upon request.
rental property caused by a tenant Tenants in existing tenancies will be able to ask
their landlords for this insurance information, and
• Bringing in new requirements for landlords
to include an insurance statement in this must also be provided within a reasonable
every tenancy agreement and provide time.
policy details to tenants, if requested If landlords don’t provide this information, or
• Updated regulations around methamphetamine if they don’t tell tenants, in writing, within a
contamination in rental properties, reasonable time if any information changes, they
including how any contamination of rental may be liable for a financial penalty of up to $500.
properties is tested for and managed
Insurance companies will not be able to pursue
• Strengthening the law for holding landlords
tenants on the landlord’s behalf for the cost of
to account if they rent out unsuitable
properties that may be classed as unlawful for damage unless the damage was intentional or the
residential use. This includes giving Tenancy result of an act or omission that constitutes an
Services the ability to take enforcement imprisonable offence.
action against landlords who rent properties
which don’t meet minimum standards. Methamphetamine contamination
of rental properties
Tenant liability for damage
Under the Act, new regulations will be
These changes aim to encourage tenants to take developed to prescribe the acceptable
proper care of rental properties while making level for methamphetamine contamination,
sure they are not liable for excessive costs. They processes for testing (including when to test)
are also designed to ensure, as much as possible, and decontamination of rental properties. The
that landlords are not out of pocket for careless regulations will be developed over the next year,
damage to a rental property. If tenants damage a with a hopeful release prior to the end of 2020.
rental property as a result of careless behaviour,
they will now be liable for the cost of the damage Landlords will be able to test for
up to a maximum of four weeks’ rent or the methamphetamine in rental premises while
landlord’s insurance excess, whichever is lower. tenants are living there and must provide 48
hours’ notice to tenants before entering the
Landlords will need to provide insurance property. Landlords will have to tell the tenant
information in any new tenancy agreement, what contaminants they are testing for and share
including whether the property is insured and if the test results (in writing) with the tenant within
so, what the excess amount is. seven days of receiving them.
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