Government has released proposed standards for their Healthy Homes Guarantee Bill. This covers improved standards to rental properties that are additional to the rental property Minimum Standards Act that was passed in 2016.
The NZPIF supported the 2016 Minimum Standard legislation which included compulsory smoke alarms and insulation in rental properties. In a far more targeted form, the NZPIF was also the catalyst for the Government’s winter energy payment.
While the NZPIF continues to support rental property standards, these need to be achieved in a cost-effective manner.
“Because many people will see owners paying the upfront costs of these standards, there will be a tendency for tenant advocates to want them to be gold standard” says Andrew King, Executive Officer of the NZ Property Investors Federation. “However, the standards need to be cost effective as tenants will ultimately bear the cost of any changes.”
As an example, new Insulation requirements from 2001 are less than 10% more efficient than previous standards, yet the cost to top up rentals insulated before 2001 would cost nearly as much as installing completely new insulation.