They say a home is more than just four walls, a roof and a floor – but quality walls, roofs and floors are what makes a home healthy and safe to live in. That’s what the new Healthy Homes standards aim to achieve for the nearly 600,000 households that rent a home in New Zealand. And the first deadlines for compliance are coming up soon.
By 1 December 2020 (postponed from 1 June 2020), landlords must include a statement of their current level of compliance in any new, varied or renewed tenancy agreement. And from 1 July 2021, all private rental properties will have to comply with the new Healthy Home standards within 90 days of any new tenancy.
Here’s how landlords can get their property up to standard (with a little help from Lifestyle Finance).
Heating
Adequate heating is a key area to focus on. The new standards require landlords to install a fixed source of heating, big enough to heat the main living area to 18 degrees all-year-round. Not sure what that means for you? You can use this handy online tool to calculate your heating requirements.
The heating source could be either a heat pump or an electric heater, provided it’s fixed (spare heaters don’t count). For a heat pump, including installation, you might be looking at spending approximately $2,500.
Of course, a good heating system isn’t enough without proper insulation. Which brings us to the next standard…
Insulation
A fully insulated rental home is warmer, healthier and more energy-efficient. Keep in mind that ceiling and underfloor insulation has already been compulsory since 1 July 2019 – so if you haven’t sorted it yet, make sure it doesn’t slip through the cracks.
Insulation requirements are measured by R-value, which is a measure of resistance to heat flow. Depending on where you live, minimum R-values may vary; you can download a comprehensive guide here.
Not sure if your current insulation meets the standards? There’s a helpful online tool for this as well – click here to find out if an upgrade is necessary. Insulation costs usually depend on the size of your property, but based on advertised prices, costs range between $2,500 and $4,500 for a three-bedroom house.
Ventilation
Dry air is easier to heat, so proper ventilation is another important tool to protect tenants’ health. Not only that, but a well-ventilated rental is also less likely to deteriorate over time – safeguarding your investment.
Here’s an overview of what the ventilation standard requires. In a nutshell, all livable spaces (bedrooms, living rooms, dining rooms and kitchen) need to have an openable window or door.
Plus, kitchens and bathrooms must have an extractor fan that’s vented to the outside, to prevent mould and dampness – you can use this online tool to find out if you need to install one. According to renovation experts, costs may range from $200 to $1,000 for the bathroom, and $200 to $2,500 for the kitchen.
Moisture ingress and drainage
Does your property have sufficient drainage? According to the new standards, rentals must have an efficient drainage system for the removal of stormwater, surface water, and groundwater.
Make sure your guttering and downpipes are up to standard, and if the rental property has a suspended floor, you’ll also need to install a ground moisture barrier to prevent subfloor moisture. A professional installation may cost around $1,500-$2,500.
Draught stopping
The fifth standard requires landlords to ‘mind the important gaps’. Fixing draughts is another key way to improve energy efficiency, so landlords must address any gaps and holes in walls, windows, ceilings, floors and doors. Also, if there are unused fireplaces or chimneys, these must be blocked off.
Weather gaps are usually quite cheap to fix, but if a door or window is beyond repair, then a replacement may be worthwhile. Once again, costs vary widely.
Why raise the standards?
A healthy home is a happy home. For tenants, it means a secure place to grow and thrive. For landlords, it’s a great way to protect their investment from the wear of time, and in most cases, even increase the value of their property and potential rental income.
We recommend landlords to get their rental assessed by an independent, qualified assessor. They usually provide a detailed report, which can be used as leverage when marketing a property; if listed in the LIM, it may even increase its value.
Consider using a property manager
With new regulations coming into force, self-managing your property (or properties) can be a lot of work – especially if you already have a full-time job to attend to. Have you considered engaging the services of a property manager?
Shorter vacancy cycles and effective tenant screening are not the only benefits to using one. Your property manager might also help take the pressure off your renovation project by liaising with tradies on your behalf, to ensure everything goes as smooth as possible. Plus, over time they will keep on top of any maintenance issues that may arise.
In a nutshell, working with a property manager may save you time now, and money in the long run.
How we help landlords fund the cost
By 1 July 2021, all rental properties must be fully compliant with the new, increased standards. If you (or someone you know) need to renovate or upgrade your rental, we can help you fund the cost.
Our Healthy Homes Finance tool offers a range of benefits, including no upfront payments. Plus, funds are paid directly to you, the landlord, with no need for quotes or invoices in advance. Give our team a call on 0800 100 265 or send us a message to learn more.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current development or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.