February 26, 2019

Four and a half Months To Insulate All Rental Properties

From mid-2019, fines of $4000 payable to the tenant, may be issued by MBIE for properties where insulation is not compliant.  

The Real Estate Institute of New Zealand and MBIE are reminding landlords that those who still don’t comply after paying the penalty may face further action.

What’s compulsory and when?

  • Ceiling and underfloor insulation will be compulsory in all rental homes across New Zealand from 1 July 2019
  • MBIE will check up on landlords to ensure their rental properties meet Residential Tenancies Act requirements by the deadline.
  • Insulation can be installed in most homes in a day. It’s quickly stapled to the underside of the floor, so there is no reason to delay getting it done.

Landlords must comply and complete a statement of compliance

  • Ensure that all new tenancy agreements include a separately signed insulation statement covering what insulation the home has, where it is, and what type.
  • MBIE has suggested the average cost for a professional installer to install both ceiling and floor insulation is about $3,400 +GST for a 96 square metre property. This would increase if the property is larger.
  • Landlords must make all reasonable efforts to find out what insulation is in their rental property. This includes physically looking, engaging a professional to do an assessment, or checking the council building file
  • Insulation statements must be included in all new tenancy agreements. Landlords must disclose whether there is insulation in the rental home, where it is, what type and what condition it is in
  • A landlord who does not make a complete insulation statement may be liable for a penalty of up to $500.

Here’s a free easy-to-use insulation statement to include in your information for tenants
Your guide to the new requirements is

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