Wellington rental property management experts

Insulation - New Standards For Rental Housing!

July 2019 - the month to remember!  Yes it's International Kissing Day & World Emoji Day. It’s also when new rental housing insulation standards come into full effect in NZ (not nearly as much fun).  Do you know about it?!

kissing emoji.jpg

 

Recent law changes, to ensure an improved quality of life and public health for all NZ tenants, will require landlords to meet new housing standards for ceiling and under-floor insulation.  What does this mean and how?

Firstly, Statements of Insulation for tenancy agreements have been a legal requirement since July 2016 – requiring the listing of details as to what insulation the home already has, where that insulation is, what type of product and its condition.  For an MBIE insulation statement template, click here.

However as from 1 July 2019 new and very specific insulation upgrades will be compulsory for all rental homes, *where reasonably practicable”. 

This means:

Ceiling Insulation 

If your ceiling insulation is less than 70mm thick you are required to top up with new insulation that complies with regulations.  If it is thicker than 70mm you don’t need to do anything provided it is **in reasonable condition.  However If less than 120mm it is recommended that you top it up anyway.

**Reasonable condition means no missed areas, no defects, and no gaps except around down-lights and other heat sources.

Underfloor Insulation

insulation installation.jpg

If you have no insulation under the floor you are required to have this installed.  Any existing insulation must be in **reasonable condition, with no missing areas, no gaps and no defects.

If you have foil insulation under the floor this is still considered adequate as long as the top surface is still shiny and there are no rips, gaps, or damage.  Please remember there is a risk of electrocution with foil so it is important to turn off your electricity source before touching it.  (insert comic pic of person being electrocuted)  It is recommended that you hire a professional to remove foil.  Damaged foil must not be repaired, but instead it must be replaced with another insulation product. 

Is My Insulation Adequate?

Over time, some insulation is known to settle, so even if your rental house had insulation installed in recent years it would be wise to double-check this to ensure it meets the new insulation standards.

There are some exceptions to the above requirements, such as if your house has no roof or subfloor space, or if there is inadequate roof or subfloor space. 

It’s a good idea to talk with an insulation installer to find out if an exception applies to your property, and/or to check if the present insulation is adequate.  Being mistaken about complying with the new Residential Tenancy Act insulation regulations, once they come into effect, means you can be deemed as having committed an unlawful act and may become liable for a penalty of up to $4,000.

Need Help Meeting New Insulation Standards?

The government are providing Insulation Grants of 50% or more for landlords with low-income or high health need tenants, but the insulation must be installed before 30th June 2018 to qualify. 

Warm Up NZ, Healthy Homes.jpg

Some councils have programmes in place, including Greater Wellington, that allow landlords to add the cost of insulation to their rates and pay it off over the years ahead.  You can get in touch with your local council, or visit their website, to find out what support is available in your region.

For Wainuiomata homes there is also a special offer of financial assistance for clean heating since it's a district where air pollution can be a problem.

Free home assessments, independent advice, special packages and assistance are available for landlords, including low cost repayment plans.  Wellington property owners can check this out with the following approved providers of the Government’s Warm Up New Zealand: Healthy Homes programme:

Energy Wise  

Energy Smart  

Smart Energy Solutions 

Sustainability Trust 

You can find further information about requirements, related costs, building design exceptions and local installers at tenancy.govt.nz.

Beware of Not Meeting The New Standards

Due to the Government’s tenancy law reforms in 2016, the ministry can now directly prosecute a landlord for failing to provide a warm, safe, dry home instead of relying on tenants to take Tribunal action.  MBIE’s Tenancy Compliance & Investigations Team first convicted and fined a Manurewa landlord 12 months ago for renting a sub-standard property.  Councils, welfare groups, student associations and others are being encouraged to pass on any similar cases of non-compliance for investigation.

Pay rent.jpg

Benefits To Landlords

Although this law change means more costs for property owners, a well-insulated rental house with energy-efficient heating and appliances can mean:

-       it’s easier to market

-       the property can attract a higher rent

-       a reduction in maintenance costs

-       the value of the property may increase

-       it’s more likely tenants will stay longer in a property that’s warm and cheap to heat, and

-       it will reduce the costs of high tenant turnover. 

There are some excellent tips for both landlords and tenants to lower energy bills (and damage to property) on the Energy Wise website that you might like to utilise too.

Make the most of the opportunities to get assistance now to ensure your rental property meets the new insulation standards, so you’re not under pressure in 2019.  Here’s to many years of productive rentals and contented tenants!