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.
- Need help with compliance? Find your local property manager
Last updated: March 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 have fixed heating that can maintain at least 18°C in the main living room.
Meeting this requirement involves:
- Conduct thorough room assessments: evaluate room dimensions, window sizes, and ceiling height to determine precise heating needs.
- Calculate minimum heating power: ensuring your heaters have sufficient capacity to maintain the required temperature efficiently.
- Review ventilation and insulation: We consider how your existing insulation and ventilation work together with heating systems to create a comfortable, energy-efficient home.
With over 600,000 rental properties in New Zealand requiring compliance, this represents a significant responsibility for landlords.
Our Property Brokers team can conduct a thorough, professional assessment to confirm your property meets these standards and recommend cost-effective solutions where needed.
Need help determining if your property meets heating requirements? Book a compliance assessment
Insulation Requirements
To comply with New Zealand's Healthy Homes Standards, ensure your rental property's ceiling and underfloor insulation meet the required R-values for your climate zone:
- Zone 1: Ceiling R 2.9, Underfloor R 1.3
- Zone 2: Ceiling R 2.9, Underfloor R 1.3
- Zone 3: Ceiling R 3.3, Underfloor R 1.3
Source: Tenancy Services
For properties with insulation installed before 1 July 2016, the ceiling insulation must be at least 120mm thick, unless it originally met the required R-values and hasn't degraded by more than 30%.
Insulation must be regularly checked and maintained, and DIY insulation installations must be certified by a professional to be compliant.
Your property manager will provide tailored guidance to ensure compliance with these standards.
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.
- Check if your insulation meets current standards: View our Property Management Guide
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 $7,200: 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 $7,200, typically assigned to tenants.”
- Stay ahead of deadlines! Schedule a compliance check
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.
- Need professional guidance? Consult a Property Manager
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.”
- Want expert support? Find your local Property Manager
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.
- Still have questions? Speak to a Property Brokers expert
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
- Need help managing compliance? Let Property Brokers handle it for you
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.
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