Are you aware the government recently introduced a bill to amend the Residential Tenancies Act (RTA) with the aim of improving rental standards and tenancy services? Approved by Cabinet in April 2016, these changes will affect both landlords and the million New Zealanders who live in rental accommodation.
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How Will This Affect Me?
With the aim of making homes warmer, drier and safer, and to reduce fire-related injuries/deaths, the main proposed changes to residential rental properties are:
- Smoke alarms (locations and alarm types defined), with responsibilities for these clarified between landlord and tenant, required from 1 July 2016.
- New requirements for ceiling and underfloor insulation (non-social housing and including boarding-houses) by 1 July 2019. Landlords will be required to provide a statement on the tenancy agreement about the location, type and condition of insulation in the rental home.
- Strengthened “retaliatory notice” provisions, to increase tenants’ confidence to exercise their rights without being evicted as a result.
- Changes to enable faster resolution of tenancy abandonment cases, so that rental properties can be re-let more quickly.
Insulation and Ventilation
“Oh no” I hear the landlord cry, “more expenses and less profit”! This initial outlay may not appeal, however when you think of the significant cost involved in investing in a rental property it really is in the owner’s best interests to maintain and even improve their property so as to increase its life, reduce impact on the environment and ensure it retains value.
A well-insulated, ventilated house with energy efficient heating makes it eminently more rentable and can draw a greater rental rate.
By Ronstick
Cheap shortcuts can mean costly outcomes too, long-term. Obviously where dampness prevails, mildew and mould can quickly develop which will not only (cause) disgruntled tenants with harmful health issues who won’t want to stay, but will damage the house resulting in potentially very expensive repairs and heartache
The average cost of retrofitting both ceiling and floor insulation is approximately $3300. For most properties, the insulation investment will not be a tax deductable expense - it depends on whether you will be replacing insulation or installing new. New insulation is considered an improvement and therefore a capital expense. Some properties will be exempt from the retrofitting of insulation if, for example, it would require pulling up the floorboards or lifting the entire house.
Landlords may be able to get a subsidy through the Warm up New Zealand: Healthy Homes programme, depending on when the house was built, and the age and health needs of people living in their rental.
Check out here to see if you’re eligible for a grant. You must register your interest by 30 June 2016 to qualify!
Did you know that according to Consumer NZ, causes of moisture in our homes are:
| Activity | Litres |
|---|---|
| Cooking | 3.0/day |
| Clothes washing | 0.5/day |
| Showers and baths | 1.5/day (per person) |
| Dishes | 1.0/day |
| Clothes drying (unvented) | 5.0/load |
| Gas heater (unflued) | Up to 1.0/hr |
| Breathing, Active | 0.2/hr per person |
| Breathing, Asleep | 0.02/hr per person |
| Perspiration | 0.03/hr per person |
http://thefireguy.co.uk/
Landlords should ensure they have the right insurance cover for their rental properties too and that they check with their insurer to be clear about landlord and tenant obligations regarding smoke alarms and fires. There have been cases of landlords being held liable for tenant carelessness causing a fire, however if a tenant removes or causes a smoke alarm to be inoperative the tenant would be liable.
The government is promising an information and education campaign once the new regulations have become law, including remedies to prevent dampness and mould etc. For more information in the meantime, you can take a look at the following:
www.mbie.govt.nz
www.beehive.govt.nz/sites/all/files/Q&As.pdf
www.tenancy.govt.nz/maintenance-and-inspections/warmdrysafer/
Let Dominion Property Management assist you with your rental property needs! Stay warm and safe.