Home Featured Rental housing bill passed

Issue 55 – August 2016

Rental housing bill passed

28 Jul 2016, Featured, Industry Updates

Landlords must install insulation and smoke alarms in their rental properties after the Residential Tenancies Amendment Bill passed its final reading in Parliament

The bill was passed unanimously and Building and Housing Minister Dr Nick Smith said it will save 1,000 lives over the next decade.

“This important bill will make homes warmer, drier and safer for tens of thousands of tenants, without imposing unreasonable costs,” said Dr Smith.

The new insulation requirements apply to social housing from 1 July this year, and to all other rentals from 1 July 2019.

Insulation installed after 1 July must be to the latest 2008 standards and landlords must also declare the levels of insulation in a rental property in all tenancy agreements from the same date.

If the existing insulation does not meet the 1978 minimum thermal requirements specified in the regulations, or is incomplete, damaged or damp, landlords will need to either replace the existing or install new insulation in the ceiling and underfloor to meet the current Building Code requirements.

It’s expected that 180,000 properties will be affected by the requirements, at an average estimated cost of $2,800
per property.

The government will also provide guidance to landlords promoting the benefits of hiring a professional over property owners doing the job themselves.

Long-life alarms required

The requirements for smoke alarms apply from 1 July, with a stipulation that they must be ‘long-life’ models with a battery life of ten years. It’s expected that 120,000 homes are to be affected.

Dr Smith added that other measures included in the bill will help tackle the problem of sub-standard rental properties.

“There are a small proportion of unsafe rental properties that have rot, unsafe wiring, leaky roofs and broken
plumbing. These properties breach the current regulations. The answer is not more rules but better enforcement.”

“The bill gives new powers to the chief executive of the Ministry of Business, Innovation and Employment to investigate and take direct action against landlords for breaking tenancy laws, where there is a risk to the health and safety of tenants.”


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