Housing and Urban Development Minister Phil Twyford has issued a consultation paper on minimum standards proposed under the Healthy Homes Guarantee Act, which the Government says must be in place by July 1st next year.

The proposed standards will set minimum requirements for heating, insulation, ventilation, moisture and drainage, and draught stopping in residential rental properties. The public consultation paper examines issues and suggests options for each category.

The Minister said the proposed standards were “designed to eradicate the tens of thousands of health complaints resulting every winter from “damp, cold and mouldy” rental homes”. He also stated that the current Government is “committed to improving the quality of rental properties so that families living in rental properties are happier and healthier”.

The proposals come on the back of the Government’s Healthy Homes Guarantee Act passed in December. They will require all landlords to bring their rental properties up to the new health standards, except where those improvements are not practical.

Landlords who did not comply with the new standards could face a $4000 fine issued by the Tenancy Tribunal. It was unclear how many of the country’s rental properties would need to be modified, Twyford said.

PROPOSED RENTAL HOUSING STANDARDS

HEATING
Indoor temperature:
Option 1 – heaters able to maintain a temperature of at least 18 degC in applicable rooms
Option 2 – heaters able to maintain temperature of at least 20 degC
Heating devices:
Option 1 – landlords required to provide fixed heating devices only
Option 2 – landlords required to provide fixed and portable heating devices
Heating locations:
Option 1 – Heating provided in living room
Option 2 – Heating provided in bedrooms and living room

INSULATION
Minimum ceiling and underfloor insulation level:
Option 1 – no change from 1978 standard for existing insulation and 2008 Building Code standard for new installations
Option 2 – 2001 Building Code standard for existing insulation and 2008 Building Code standard for new installations
Option 3 – 2008 Building Code standard for existing and new insulation
Insulation degradation levels:
Option 1 – 30 per cent reduction classed as unreasonable
Option 2 – 10 per cent reduction classed as unreasonable

VENTILATION
Appropriate ventilation method:
Option 1 – No change: At least one window in all bathrooms, sufficiently-sized windows in other habitable rooms and adequate ventilation in non-habitable rooms
Option 2 – Openable windows in living room, dining room, kitchen, and bedrooms – unless exemption applies and bathrooms have extractor fan
Option 3 – Same as option two, plus extractor fan in rooms with indoor cooktop

MOISTURE AND DRAINAGE
Option 1 – No change: efficient drainage for removal of stormwater, surface water and ground water; gutters and drains to remove roof water; adequate ventilation to prevent floor dampness
Option 2 – addition of subfloor ground moisture barrier (81 per cent of rental homes do not have these)
DRAUGHT STOPPING
Option 1 – No change: Walls and ceilings sheathed, plastered, rendered and maintained; no crevices, holes or depressions in floor
Option 2 – Unused fireplaces and chimneys and gaps or holes bigger than three millimetres to be blocked

The discussion document and an online survey are available at www.mbie.govt.nz/healthy-homes Consultation is open for seven weeks with submissions closing at 6pm on Monday 22 October.

With the Tauranga property market doing so well over the last few years, more people are interested in getting into property investment. Of course, property investment is not something to consider lightly and is not always smooth sailing for Landlords. There are some key things you should consider when buying an investment property and to help you on your journey here are four questions you should think about:

1. What are you trying to achieve?

Is it money? Is it wealth? For most people, the answer is financial freedom. The actual bricks and mortar of your property probably isn’t your end goal. Rather, it’s the vehicle to get you to where you want to be. Therefore, treat property investment as a journey, and don’t get lost along the way.

2. What strategy are you going to use to get you there?

For some investors, their preferred strategy is high growth properties. For others, it is a consistent cash flow. If you are in the first camp, you need to look for properties priced below their intrinsic values in areas that are going to perform well in the long term. Look for something that is a bit unique, a bit different or special, and add value. Look for a property that’s going to be in strong demand by owner-occupiers rather than just tenants.

If cash flow is your main driver then consider investing in either established or growth suburbs. Buy property that is near schools and shops, is easy to maintain and will be easy to rent out.

3. What can you afford?

We recommend visiting a proficient finance strategist, either your bank or a professional financial advisor or accountant who understands how to set your finances correctly. Also, always get your loan pre-approved, because that is going to be one of the factors that affect where you buy and the sort of property you can buy.

Before you purchase your property, talk to our team for a free market appraisal of the property to make sure you are realistic about what you will achieve.

4. Who do you ask for advice?

As stated above, you should always talk to your bank and accountant for professional advice about your finances/costs. We also recommend using a good lawyer to get the right ownership structures, the right entities etc.

Next, you should speak to a certified Property Manager for independent property advice. This can help protect you from investing in the wrong type of property or paying too much for an investment property.
If you are thinking of purchasing an investment property in Tauranga, give Chris a call. Chris has many years of real estate and property management experience and will give you the best advice for your property investing goals.