Landlords’ Guide to Minimum Rental Property Standards for Tenant Wellbeing

Thursday, 7 March 2019


NZ Rental Property Standards


Meeting rental property standards isn’t just about compliance – it’s about protecting your investment and ensuring steady rental income.

The new rental property standards introduce stricter heating, insulation, and compliance requirements to improve tenant wellbeing. While the costs of meeting these standards may impact landlords in the short term, long-term benefits include healthier homes, lower maintenance costs, and improved tenant retention. Property Brokers is actively supporting landlords through this transition with expert guidance and compliance management.



Last updated: January 2025. Standards and requirements may change. Always refer to current legislation or a property management professional for the latest requirements.




Understanding the New Rental Property Standards


The recent changes to rental property standards have been welcomed across the industry, as they aim to improve housing conditions and tenant health.

“We are advocates of healthy homes and better living standards, and we see the benefits of the new regulations,” says Will Alexander, Property Brokers Divisional Manager in Property Management.

While these changes bring long-term benefits, landlords must be prepared for the logistics, costs, and resource allocation required to bring their properties up to standard.




Key Rental Property Compliance Areas


Heating Standards


Rental properties must be able to maintain a temperature of at least 18°C in living areas. This means:

  • Room assessments required: Room dimensions, window sizes, and skylights factor into heating needs.
  • Minimum heating power calculations: Heating units must be powerful enough to maintain required temperatures.
  • Insulation impact: Existing insulation and ventilation influence compliance.

Achieving this standard requires detailed measurements across 600,000+ rental properties in New Zealand – a major challenge for landlords.





Insulation Requirements


Rental properties must meet minimum insulation levels to retain heat and improve energy efficiency.

  • Ceiling insulation: Minimum R-value of 2.9 in Auckland, 3.3 in the rest of NZ.
  • Underfloor insulation: Minimum R-value of 1.3.
  • Regular inspections: Insulation must be checked and maintained.
  • Compliance certification required: DIY insulation installations must be certified by a professional.

Rents have already increased by 9.5% across Property Brokers due to compliance costs, including insulation upgrades and the shift of letting fees to landlords.




Compliance Timeline and Penalties


Failing to meet compliance deadlines can result in financial penalties, legal issues, and reputational damage.


Key Deadlines for 2025

  • Full heating assessment completed
  • Updated insulation certificates in place
  • Compliance with all Healthy Homes standards

Penalties for Non-Compliance

  • Exemplary damages up to $4,000: payable to tenants.
  • Rent withholding orders: tenants may refuse to pay rent until the issue is resolved.
  • Limited ability to terminate tenancies: non-compliant landlords may struggle to regain possession of properties.

“If a landlord is non-compliant by July 1, 2025, the Tenancy Tribunal may award penalties of up to $4,000, typically assigned to tenants.”






Steps to Get Your Property Compliant


1. Professional Assessment

  • Book a heating and insulation assessment.
  • Document room measurements and existing heating solutions.
  • Identify areas needing upgrades.

2. Documentation & Compliance Tracking

  • Create a compliance folder with all relevant reports.
  • Maintain inspection records and receipts for upgrades.
  • Ensure all work is professionally certified.

3. Property Upgrades

  • Install compliant heating units where required.
  • Upgrade insulation and ventilation as needed.
  • Address moisture ingress and draught-stopping measures.





Why Working With a Property Manager Makes Sense


Property Brokers is proactively supporting landlords through these changes by:

  • Employing a full-time compliance administrator: to manage and track compliance requirements.
  • Conducting additional property inspections: to assess and address necessary upgrades.
  • Providing clear, practical guidance: to help landlords make informed decisions.
  • Creating a review group of tenants and owners: to ensure all perspectives are considered.

“We feel it is essential that all perspectives are heard when tackling these changes,” says Alexander. “We should pause and take the time to get this right.”





Common Questions from Landlords


How much will compliance cost?

Costs vary based on property size, location, and required upgrades. Professional assessments can provide accurate estimates.


Can I do the work myself?

DIY work must meet legal standards and be professionally certified. Insulation, heating, and moisture prevention typically require licensed professionals.


What if my property can't meet the standards?

Exemptions exist for certain properties, but landlords must provide documentation to justify exemptions.


How do I update an older rental to meet new standards?

  • Start with an assessment and prioritise cost-effective upgrades like insulation and heating improvements.



Next Steps for Landlords


1. Book a professional compliance assessment

2. Create a timeline for necessary upgrades

3. Budget for compliance costs

4. Schedule regular inspections to maintain standards





The new rental property standards are a necessary step towards healthier homes and better living conditions. While compliance costs are a challenge, they contribute to long-term investment protection, reduced maintenance issues, and improved tenant retention.

Property Brokers is here to guide landlords every step of the way - from assessments to compliance tracking.

Get expert property management advice today

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