A 4000 fine for failing to install insulation! Landlords make the first move, telling tenants of 10 years to leave
A 70-year-old and a 3-month-old baby both have to leave!
New Zealand’s healthy homes standards came into force this Monday. Landlords whose rental properties have non-compliant insulation can face fines of up to NZ$4000, with the money going to the tenants.
While people debate how many tenants will actually take their landlords to court, some landlords have already made the first move.
Case one: tenants forced out after 10 years
In Henderson, west Auckland, an elderly couple who had lived in their rental home for 10 years received notice from their landlord to leave within 90 days. The notice arrived on 27 June, 4 days before the new insulation rules took effect. The landlord said the house needed to be vacant so insulation could be installed.
Case two: family with a newborn told to leave
In Pakuranga Heights, east Auckland, a family with 3 children say they received 90 days’ notice to leave after asking when insulation would be installed. Their children are aged 5 years, 1 year and 3 months. The landlord said they wanted to move into the property themselves.
The mother said she had a good relationship with the property manager and was left at a loss by the sudden notice to move out. She and her partner both believe the landlord actually wants to avoid installing insulation.
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Under New Zealand’s new healthy homes rules for rental properties, which took effect on 1 July, rental homes must have ceiling and underfloor insulation at least 100 mm thick.
When a tenancy agreement is signed, landlords must also state what type of insulation is installed and where it is located in the property.
Unless the property qualifies for an insulation exemption, landlords could face fines of up to NZ$4000.
According to Stuff, the elderly couple in case 1 plan to seek NZ$4000 from their landlord for failing to meet the new insulation requirements before 1 July, before considering whether to take further legal action.
The couple in case 2 are also considering going to the Tenancy Tribunal to seek NZ$4000 for the same reason. The children’s mother said she told the property manager last winter that the house was mouldy and cold, and was told to open the windows for ventilation.
In early May this year, she asked the property manager when insulation would be installed. The manager replied the same day, saying they would tell the landlord, but the landlord then sent notice requiring the family to move out.
The coordinator of the Auckland Tenants’ Protection Association, identified as Auckland Tenants’ Protection Association, said that if landlords hoped to evade the new insulation rules by forcing tenants out, it seemed “a pretty stupid idea”; tenants could fight back by taking a claim to the Tenancy Tribunal!
Under the Residential Tenancies Act, landlords can terminate a tenancy without giving a reason by providing 90 days’ notice. However, AUT associate professor of law Rod Thomas said that doing so to exploit a loophole was short-sighted, because landlords would have to install insulation anyway if they wanted to keep renting out the property.
The Ministry of Business, Innovation and Employment (MBIE) said it had received fewer than 10 enquiries since March about cases involving tenants being evicted because of the new healthy homes rules.
Online comments varied widely. Some said being a landlord was difficult, with costs continuing to rise; others felt sorry for the tenants. Some also criticised the Labour Government for failing to think things through, saying it should have anticipated that landlords would pass the costs on to tenants.
However, it should be pointed out that the insulation policy was developed in 2015, during the later years of the National government under John Key and Bill English. A 4-year preparation period was allowed before implementation began today. Then Housing Minister Nick Smith was responsible for putting it together.
He also posted on Facebook on 30 June that he was “proud” that “a million New Zealanders are living in warmer, drier homes”.