REINZ reminds landlords they have just 40 days left to insulate rental properties or face a $4,000 fine
The Real Estate Institute of New Zealand (REINZ) is reminding landlords that they have just 40 days left to insulate
their rental properties, or they could face a fine of up to $4,000 from the Ministry of Business, Innovation and
Employment (MBIE).
Any landlords who still don’t comply after paying the penalty, may face further action according to MBIE.
Bindi Norwell, Chief Executive at REINZ says: “From 1 July 2019 ceiling and underfloor insulation is compulsory in all
rental homes across New Zealand. Landlords now have just over a month to meet the looming deadline, so it’s imperative
that if they haven’t already acted that the take action now – particularly as stories are emerging about suppliers
running out of insulation materials ahead of the deadline.
“The insulation requirements were announced under changes made to the RTA back in 2016, and MBIE has warned that it will
be proactively checking up on landlords to ensure their rental properties meet the requirements under the Residential
Tenancies Act (RTA) by the deadline,” continues Norwell.
“There has been some confusion over properties that will be demolished or substantially renovated in the coming months,
and their insulation requirements. If a landlord has applied for and obtained the necessary resource or building
consents by 1 July 2019, they are not required to upgrade the insulation during the 12-month period beginning 1 July
2019. They must, however, comply by 1 July 2020, and existing tenants living in existing tenancies that fall under this
exemption must be fully informed,” Norwell clarifies.
“Landlords must also ensure that all new tenancy agreements include a separately signed insulation statement covering
what insulation the home has, where it is, including the type, thickness or R Rating,” she continues.
While REINZ has been making a strong effort to communicate with its members who are property managers, as there is no
regulation and no governing body for property managers there is a chance that a number of property managers around the
country will not have ensured that their landlords meet the requirements by 1 July. If the industry was regulated, this
could reduce the chance of the legislation not being adhered to by rogue property managers.
REINZ has welcomed the insulation requirements as this will help to improve New Zealand’s housing stock and also improve
the health and wellbeing of our rental population.
“We do however need to support the industry to help ensure homes can be insulated in time, especially given there are
potentially not enough insulators to meet the demand,” continues Norwell.
“With home ownership at its lowest level in 60 years, more and more Kiwis are renting, so it’s essential we protect the
health of those renting to ensure we prevent respiratory and skin infections that can be prevented by inadequate
housing,” concludes Norwell.
ENDS