As the final Healthy Homes Standards (HHS) compliance deadline of July 1st rapidly approaches, the pressure on property management companies is intensifying. But let’s be clear: turning the spotlight on real estate and property management firms will not solve the problem of substandard rental housing in New Zealand. In fact, it could make things worse for the very people the legislation is designed to protect, tenants.
Targeting agencies may seem like an effective enforcement strategy, but it risks pushing the issue underground. If property management companies are penalised for representing non-compliant properties, many will respond by firing landlords who fail to meet the standards. On paper, that looks like compliance. In reality, it drives these properties into the hands of private, often unscrupulous landlords who fall outside the purview of professional oversight. The result? A growing black market of slumlords, where the tenants are left even more vulnerable.
Property management companies are not the enemy here - they are a crucial part of the solution. Most professional agencies work hard to educate their clients, guide them through compliance requirements, and ensure that properties are safe and healthy. If the industry is discouraged from managing non-compliant homes, tenants lose their only real advocate. That’s not progress. That’s abandonment.
Rather than penalising agencies for non-compliance, the Tenancy Tribunal and the Tenancy Compliance and Investigations Team (TCIT) should be partnering with them. Property managers are in a unique position to identify the small but stubborn cohort of landlords who refuse to meet their obligations. Give agencies the tools and incentives to report and work with authorities, and we’ll see real progress.
Let’s also be clear: any fines or enforcement actions for non-compliance must fall directly on the landlord - not the company acting in good faith to bring them up to speed. Shifting liability to agencies not only punishes the wrong party, it also encourages disengagement. If we start dropping clients en masse to protect ourselves, tenants will end up stuck with landlords who have no accountability and no interest in compliance.
And what happens when landlords are fired or change management companies after July 1st? The optics alone will raise red flags. Every switch post-deadline will appear suspicious, potentially overwhelming Tenancy Services with false leads while truly bad actors slip through the cracks. It’s inefficient and counterproductive.
The government’s executive branch must choose cooperation over confrontation. If the true goal is healthier homes, then collaboration with the industry is the path forward. Agencies should be empowered and supported, not threatened, because they are the ones with the visibility and leverage to lift the standard of housing across the board.
This also raises a broader concern: the Healthy Homes legislation, while well-intentioned, is no longer fit for purpose. Some criteria are subjective, open to inconsistent interpretation, and lack a robust assessment framework. Currently, anyone can assess a property for compliance, there is no required training, no certification, and no quality control.
"That’s not how you create safe, sustainable housing. It’s how you create confusion, disputes, and costly errors."
New Zealand needs to move toward an evidence-based, standardised system like the UK’s Energy Performance Certificate (EPC), as recommended by the New Zealand Green Building Council. An EPC-style system would provide a clear, independent measure of a home’s energy efficiency and environmental performance, no grey areas, no guesswork. It would also allow tenants to make informed decisions and push the market toward better-performing homes.
In short, we need smarter regulation, not just tougher enforcement. Property managers are ready to do their part, but we need a system that supports us in helping landlords and protecting tenants. Let’s work together to raise the standard of rental housing in New Zealand, without driving it into the shadows.
