Have some funds available or looking to leverage the value of your impressive home to enter the rental investment market? There’s a some matters that have to be taken care of if you are purchasing to rent.
Under changes in legislation nearly a decade ago, every rental property in New Zealand had to have smoke alarms fitted by 1st July 2016, and then be insulated by 1st July 2019.
For insulation, there were some exemptions to properties where it is physically impractical to retrofit the materials - such as apartments with habitable spaces above and below, houses with skillion roofs and no accessible ceiling space, and homes built on concrete slabs.
For smoke alarms, tenants are responsible for replacing batteries as they go flat, and notifying landlords of any defects so the alarm can be replaced.
Retrofitted ceiling and underfloor insulation
Under the Residential Tenancies Act, landlords need to make sure their rental properties have ceiling and underfloor insulation that meets the required standard.
These requirements applied from July 2016 for government-subsidised social housing, and from July 2019 for all other rental properties, including boarding houses.
Compulsory smoke alarms
The regulations made landlords responsible for installing operational smoke alarms, with tenants responsible for replacing batteries and notifying landlords when there is a defect.
The standards require a minimum of at least one working smoke alarm in a hall or a similar area, within 3m of each bedroom door.
Further details on Insulation
From 1 July 2016, Landlords and Property Managers needed to specify on all new tenancy agreements whether insulation is present at the property as well as the level of insulation and where it was located i.e: ceiling and underfloor.
As previously mentioned, all other residential rental properties needed to have the appropriate insulation installed by 1 July 2019, while installing any conductive insulation – materials with the ability to conduct heat while also serving as electrical insulators – was banned in July 2016.
Landlords who began retrofitting or installing insulation from July 2016 had to meet use material up to certain prescribed standards, this was to prevent the installation of poor quality insulation prior to the big deadline of 1 July 2019.
Further details on Smoke Alarms
As mentioned, since July of 2016 there has been a requirement that all residential rental properties have some alarms, at least one in the hallway or similar that is within 3m of each bedroom.
There has to be a minimum of one working smoke alarm in the hall or similar, and within 3m of each bedroom door in accordance with the manufacturer’s instructions.
In multi-level units, there must be a minimum of one working smoke alarm on each level, while the likes of self-contained caravans and sleep-outs must have a minimum of one working smoke alarm.
The landlord must ensure that the alarm is operational at the start of each tenancy, but the tenant will be responsible for changing batteries when required while they live there.
Back in 2016, for properties where there are no smoke alarms, long-life photoelectric (or hardwired) versions needed to be installed, while if alarms were already installed, they only had to be replaced when they reached the end of their manufacturing life, which is usually the date stated on the unit.
All in all, these new residential tenancy law changes were designed to be good for everyone – the health of the tenants and the higher standard home for landlords to offer for rent.
What you need to ask for rental investment.
If you are looking to start or expand your rental property portfolio, then make sure to ask your Arizto salesperson if the property you are looking at has any forms of insulation.
However, keep in mind the agent can only answer with the information provided to them from the owner of the property.
It is always recommended you check yourself or acquire a comprehensive builders report, which should cover these items.
A well-heated and well-insulated rental property could mean an improved yield on investment and better retention of your tenants, as they will feel more comfortable living there.
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