Zero tolerance! Central Auckland landlords fined again over substandard rental housing! New housing rules take effect tomorrow!

The law requires all private rental properties, including boarding houses, to comply with the Healthy Homes Standards within 90 days of a tenancy beginning from 1 July 2021, or landlords will face fines.

The standards set specific minimum requirements for heating, insulation, ventilation, moisture control and drainage to ensure tenants can live in warm, dry homes.

 

Statistics show that around 1,400,000 people in New Zealand currently rent their homes, and disputes of various kinds between landlords and tenants are frequent. Research has found that rental properties are generally of lower quality than owner-occupied homes. To protect tenants' housing rights, the government has imposed stringent new housing rules on landlords. Just last week, a landlord received a substantial fine after unauthorised alterations to their property breached the Healthy Homes Standards.

 

Case study 

For whom does the warning bell toll? Central Auckland landlords face a hefty penalty over a substandard rental!

 

Last week, central Auckland landlords Ineke Kranenburg and Andrew Graham received a hefty penalty of nearly NZ$6000. They had installed a plywood ceiling across the top of an internal staircase, converting the house into two dwellings and renting out the downstairs portion. After living there for around 3 months, the tenants took the owners to the Tenancy Tribunal, The tribunal found that, when enclosing the staircase to divide the property into two dwellings, the owners had failed to install soundproofing or thermal insulation in the altered area, breaching the Healthy Homes Standards.

The tenancy agreement also prohibited the downstairs tenants from holding parties. However, the upstairs occupants, one of whom was a member of the landlord's family, held several gatherings. With no soundproofing, the downstairs tenants were subjected to persistent noise. They said they felt stressed every day. On these two grounds, the adjudicator ultimately ordered the landlords to pay the tenants NZ$5,786.44 in compensation.

 

With high house prices driving rents ever higher, many homeowners build extensions and rent them out for extra income. This is common in the rental market. However, unauthorised alterations and additions often leave rental properties below the required housing standards, exposing landlords to substantial fines.

Under the latest housing rules, from 2021-7-1, all private rental properties, including boarding houses, must comply with the Healthy Homes Standards within 90 days of a tenancy beginning, or landlords will face fines. We remind members of the Chinese community to inspect and repair their rental properties promptly, checking that they meet the latest housing rules to avoid the financial loss of a fine.

 

Nationwide Healthy Homes Standards implementation timetable: 

• From 1 July 2021, private landlords must ensure their rental properties meet the new standards.
• From July 2023, all public housing and registered community housing in New Zealand must meet the Healthy Homes Standards.
• From July 2024, all rental properties must meet the latest standards.

 

Endless frustration as property management problems abound,

and disputes keep emerging 

According to Stats NZ, New Zealand currently has around 530,000 rental properties and an estimated 1,400,000 renters. This vast rental market has spawned property management companies of all sizes. Combined with shortcomings in current property management legislation, this has led to widespread problems and recurring disputes. 

Attracted by the substantial financial rewards in the rental market, many small property management firms hastily assemble teams without professional training and start chasing profits. Tenants and owners alike frequently express anger and frustration at these companies' inaction. For some Chinese property owners, limited English creates communication barriers that further intensify tensions with their property managers. Once a dispute arises, resolving it can be exhausting and time-consuming.

For example, tenants reporting a blocked toilet to their property manager often wait two or three days for a reply, and in worse cases the problem remains unresolved for a week. Leaking or broken pipes are typically fixed only after repeated delays. There are even frequent cases of property management staff absconding with funds, leaving tenants and owners feeling helpless and insecure about their living arrangements.

 

Tested by the pandemic, property management services find renewed vigour

The pandemic struck in March 2020, sending New Zealand into repeated lockdowns. While the service and tourism industries were hit hard, the property industry also faced enormous challenges. Yet, just over a year later, the property market had rebounded remarkably, with both sales volumes and prices rising. 

Megan O'Callaghan, legal adviser to Barfoot & Thompson's property management business, recalled:

“Restrictions on movement during lockdown delayed many property settlements, and staff were unable to carry out their work during that period. This had a major impact on sales. But, incredibly, through the team's tireless efforts over the past year or so, buyers, sellers and real estate agents have all helped drive the industry forward. Our property management services maintained strong growth throughout this period.”

 

Distinctive legal advisory services help you switch to “worry-free” mode

 

As legal adviser to Barfoot & Thompson's property management business, Megan said: “Property management regulations are complex, and breaches can carry substantial penalties. We recommend that investors engage a professional property manager to safeguard their properties. Our legal advisory team specialises in handling complex property management compliance issues, providing high-quality professional services to help you understand the obligations, responsibilities and rights of landlords and tenants. For investors, choosing a good property management company means access to comprehensive, high-quality services, while also enhancing the value of your property.” 

With a history spanning nearly a century, Barfoot & Thompson is a leader in property management, currently managing more than 17,000 rental properties. Its extensive experience and strong professional management team have earned it wide recognition in the rental market and repeated international property management awards. “Peace of mind, without the worry” is the guiding principle of Barfoot & Thompson's property management service.

 

 

Helping you find suitable tenants and achieve the best rent

• A rigorous tenant selection process;
• Knowledge of the local rental market to ensure you achieve the best rent;
• Regular rent reviews, with increases assessed against market conditions;
• An extensive client network: we do our utmost to keep your property tenanted.

 

Resolving property disputes promptly

Alongside its professional property management services, Barfoot & Thompson is a member of the Real Estate Institute and understands the industry's legislative framework, enabling it to handle and resolve property disputes quickly and effectively. If required, property managers can also represent landlords at mediation and Tenancy Tribunal hearings.

“I never have to worry about my rent or property disputes, because the Barfoot & Thompson team handles everything. This is exactly the service I want,” said a Barfoot & Thompson client.

 

Keeping your money secure

All rent collected from tenants is managed by the accounting department at Barfoot & Thompson's head office. Unlike many other property management companies, all funds are held in audited trust accounts, so you can track where your money goes at any time.

 

Extensive expertise and resources

Barfoot & Thompson has more than 60 branches offering property management services. Its property managers know their local rental markets and can draw on a large company-wide pool of prospective tenants. If your property manager is out of the office, each branch has dedicated support staff available to help.

 

Leading property management specialists

Figures show that more than 61% of landlords nationwide currently say they use a property manager, with 31% choosing Barfoot & Thompson.

• First place – Barfoot & Thompson (31%)
• Second place – Crockers (19%)
• Third place – Harcourts (14%)

Source: TRA research with Aucklanders and Northlanders, October 2017.

 

Barfoot & Thompson

New Zealand's largest real estate company

Our services

• Residential property sales
• Commercial property
• Property management
• Residential lettings
• Body corporate
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