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Property Management Focus – January

Happy New Year

Welcome, 2023! With everything we experienced in 2022, we know it is likely to be another year full of challenges and change. The team from Harcourts Property Management are excited about the opportunities that 2023 will bring, and would like to wish you all a happy, healthy, and prosperous year ahead.

The Cost of Filing Tenancy Tribunal Applications

At a recent Tenancy Tribunal hearing, a landlord made a claim against the tenant for rent arrears, costs such as cleaning, and costs associated with alleged methamphetamine contamination of the premises.

The landlord claimed that the premises were damaged by methamphetamine contamination during the tenancy to the extent that the premises were not habitable and needed to be decontaminated. However, no methamphetamine test was conducted immediately before the tenancy began and a pre-tenancy test is usually required for the landlord to establish if the premises were contaminated prior to the tenant moving in.

There are other means to prove contamination if a pre-tenancy methamphetamine test was not conducted, however, the evidence must be compelling. For this particular case, there was no evidence provided to suggest that the current tenant was responsible for the methamphetamine contamination of the property.

Due to the seriousness of the allegations, the tenants engaged legal counsel. As the tenant was represented by legal counsel, the Tribunal had the power to award costs.

The tenants, represented by legal counsel, filed a memorandum seeking costs and the Tribunal made an award of $2,500 to the tenant. This amount was awarded firstly, due to the serious allegations that methamphetamine was used, and possibly manufactured on the premises, and that the landlord made this application without considering what evidence was required to prove it.

econdly, because the tenant was largely successful against all the allegations claimed by the landlord, the tenant had their name and identifying details suppressed from the Tenancy Tribunal order.

A landlord must consider the validity of any allegation and what evidence they have before making an application to Tenancy Tribunal. Property managers should advise landlords on the possible success of any claims and provide a professional opinion as to whether they should proceed. There may be times when a property manager declines to represent a landlord if the case does not have legitimacy.

When extensive alterations, refurbishment, repairs, or redevelopment are required

Section 51 of the Residential Tenancies Act – Termination by Notice

A landlord may terminate a periodic tenancy, or a fixed term tenancy on or after the end date, by giving at least 90 days notice if:

Extensive alterations, refurbishment, repairs, or redevelopment of the premises are to be carried out by the landlord or owner, and—

(i) it would not be reasonably practicable for the tenant to remain in occupation while the work is undertaken; and

(ii) the work is to begin, or material steps towards it are to be taken, within 90 days after the termination date.

What should be considered before terminating the tenancy using this provision in the Residential Tenancies Act 1986 (RTA)?

When considering extensive renovations to a property and potentially terminating a tenancy, consider first whether the work could be performed with the tenant living in the property, or if the tenant could simply move out for a short period of time.

If the tenant simply needed to vacate the premises for a short period of time, could they leave their belongings at the property or would they need to remove their belongings? In the case of renovating a bathroom, is there another bathroom that they have access to? In some cases, temporary bathrooms can be provided for the occupier to use during a bathroom renovation.

Consult with your tradespeople about whether it is practicable for your tenants and their belongings to stay in the property while the work is being carried out and how long the work will take. If it would be impractical for the tenant to stay, get this in writing, the reasons why, and how long the work is expected to take. You may be required to provide proof that the work was extensive enough to require the property to be vacant and the tenancy to terminate.

If the tenant can stay

If the tenant can stay at the property, consult with them about how long the work will take and what will be involved. Consider offering the tenant a rent reduction to compensate them for any inconvenience the renovation may cause. If they need to vacate for a short period of time and can do so, then the tenancy can continue. Landlords are not required to provide somewhere else for the tenants to stay, and tenants that move out while work is being performed are not required to pay rent until they are able to move back into the property. Any agreements that are made must be recorded in writing with all parties receiving a copy of the agreement.

Only give notice using this provision IF the notice is legitimate

Landlords and their property managers must not use this provision to terminate a tenancy if the reason is not legitimate, as they would be committing an unlawful act.

Landlords cannot act to terminate a tenancy without grounds

It is an unlawful act for a landlord to give notice to terminate a tenancy or apply to the Tribunal for termination knowing that they are not entitled to do so.
Retaliatory notice

A notice can be deemed ‘retaliatory’ if the Tribunal considers that the notice to terminate the tenancy is not legitimate and the motivation by the landlord is not for the reason stated. A ‘retaliatory notice’ is where a landlord gives notice to a tenant to end a tenancy in retaliation for a tenant standing up for their rights. For example, if the tenant made a complaint about the tenancy such as requesting maintenance to be carried out.

It is an unlawful act for a landlord to issue either a termination notice without grounds or to issue a retaliatory notice. The Tenancy Tribunal can award exemplary damages payable to the tenant of up to $6,500.

Family Violence and Physical Assault Regulations

Provisions relating to family violence and physical assault are in force. Regulations to support these changes were finalised on 1 December 2022 and came into effect on 29 December 2022.

These regulations enable:

  • tenants to withdraw from a tenancy by giving at least 2 days’ written notice to a landlord where a tenant has been subjected to family violence – while a tenant
  • landlords to terminate a tenancy with 14 days’ written notice where the tenant physically assaults the landlord, the owner, a member of the landlord’s or owners’ family, or the landlord’s agent.

Family Violence Regulations

If a tenant has been subjected to family violence, they can provide their landlord with at least two days written notice accompanied by qualifying evidence to withdraw from their tenancy.
Qualifying evidence of family violence can be:

  • a statutory declaration from the withdrawing tenant
  • a copy of the first page of a Protection Order
  • a copy of a Police Safety Order
  • a copy of a charging document relating to family violence against the withdrawing tenant or
  • a written statement (such as a letter or email) or statutory declaration from a person specified as able to provide evidence of family violence.

These documents must have been issued or completed during the withdrawing tenant’s current tenancy to be used as evidence. Protection Orders issued earlier than this are also permitted if the withdrawing tenant also provides a written statement that they have been a victim of family violence while in their current tenancy.

When there are other tenants

If there are remaining tenants, the tenancy continues. The withdrawing tenant must give notice of the withdrawal to the other tenants no later than 2 days after their withdrawal from the tenancy. This does not have to be done in person, and no evidence of family violence or other information needs to be shared. A failure to notify any remaining tenants does not invalidate the withdrawal notice.

The amount of rent for which the remaining tenants are liable is reduced for 14 days following the withdrawal. This is based on the number of tenants at the property. After 14 days, the rent will return to the normal rent payable, as per the tenancy agreement.

Only the tenants, landlord or property manager will receive the statement or declaration, which they must keep confidential and can only disclose in very limited circumstances. A landlord may not challenge whether the family violence did or did not take place. If the documents are not completed properly or are not completed by a prescribed person, the landlord can challenge the notice by filing an application in the Tenancy Tribunal.

Physical Assault Regulations

If a landlord, owner or property manager has been physically assaulted by a tenant, or a member of their family has, they can end the tenancy with at least 14 days written notice accompanied by qualifying evidence.

Evidence can be in the form of a Police charging document in respect of the physical assault or a letter from Police that a charge has been filed in relation to the physical assault by the named tenant.

The landlord does not need to apply to the Tenancy Tribunal to end the tenancy, but they must give written notice that includes certain information and at least one form of evidence of the physical assault. When issuing the notice, the landlord must also advise the tenant in the notice that they have the right to challenge the notice through the Tenancy Tribunal. If a tenant challenges the notice of termination, the tenancy remains in place until the Tenancy Tribunal arrives at a decision.

What is physical assault?

Physical assault is defined as the act of intentionally applying force to the person of another, directly or indirectly.

Other actions a landlord can take

A landlord can apply to the Tenancy Tribunal to end a tenancy if the tenant has caused or threatened to cause substantial damage to the property or assaulted or threatened to assault certain people. These reasons also apply if the tenant causes or permits another person to do the same, for example an associate or family member. This type of application would be treated as an urgent application by the Tenancy Tribunal.

In addition, if a breach of a tenancy is incapable of remedy and is of such an extent that it would be inequitable to refuse to make an order terminating the tenancy, the Tenancy Tribunal may make an order to terminate the tenancy.

Tenancy Start and End Times

Tenancy days start and end at midnight, therefore we cannot demand that tenants leave the premises and return keys before midnight on the last day of a tenancy.

For example, if a tenant gives notice to vacate on the 15th of the month, they have possession of the premises until midnight on the 15th. To collect the keys at midnight is impractical, so we would expect the keys to be returned, or to meet the tenant, collect keys, and do a walk-through, on the morning of the 16th which is the morning after the termination date of the tenancy.

If you are selling your property or planning to move back in, you will need to keep this front of mind.

Always give your property manager several working days after a tenant has vacated to get a property inspected and up to standard before taking possession of the premises. This ensures that any issues that may arise at the end of a tenancy can be dealt with before settlement or the owner takes back possession of the property.

 

 

 

 

 

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Cobham Community Support

Harcourts Holmwood Champions Children Back to School in 2023

It was our absolute pleasure with the help of the Harcourts Foundation to support eight Cobham Intermediate children back into the classroom this year by providing them with brand-new school uniforms, school shoes, PE gear, stationery, and covering the cost of their camp fees.

We know the beginning of the school year is a challenging time, financially for many families. Our management team wanted to ease the burden for some families in our Holmwood community, by ensuring they had everything they needed to get back to school.
To support our local community is at the heart of our purpose, we know the happier we make people, the better we do.
We wish these students all the very best of success in their 2023 academic year!

Janelle Pritchard, General Manager, Operations, Eddie Norgate, Principal of Cobham Intermediate, Tony Jenkins, CEO Harcourts Holmwood

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Press Release – Harcourts Holmwood Auctions

Outstanding auction success

On Wednesday 25th January, Harcourts Holmwood achieved outstanding success in their auction rooms with all four properties listed for auction, selling under the hammer.

With five properties programmed for sale, one sold prior to auction. The four properties that sold under the hammer today, each had multiple bids.

Tony Jenkins, CEO of Holmwood Real Estate said, “today was a great day in the auction rooms and we are beyond thrilled for our vendors and buyers.” He continued, “there is a lot of conversation around the Real Estate market and auction as a method of sale. Today we have proven that there is still great activity in the Christchurch market for all price ranges, and auction is indeed a great way for people to buy and sell.”

With listings and prices ranging from a modest section in New Brighton to an established four-bedroom home in Ilam, buyers were a plenty in our auction rooms.

For further information, please contact Tony Jenkins CEO of Harcourts Holmwood on 0274 432 2896 or tony.jenkins@harcourts.co.nz.

About Harcourts

Harcourts was founded in Wellington in 1888 and remains proudly Kiwi owned. Harcourts New Zealand has 205 offices and over 2600 sales consultants nationwide. We specialise in residential, commercial, and rural property sales and provide property management services. Harcourts has been at the forefront of the real estate market in New Zealand for 134 years. Today, Harcourts International has over 900 offices in nine countries around the world. Our success has been built on ensuring our people have the knowledge, expertise and tools to achieve the best possible results for our customers. *We are also proud to be New Zealand’s Most Trusted real estate brand. *Readers Digest Most Trusted survey, 2013-2022.

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SuperStart: IGNITE 2023

At Holmwood, inspiring and motivating the growth of our people is a top priority to us. We are dedicated to providing opportunities that empower our agents to reach their full potential! For this reason, we are very excited to announce Harcourts Holmwood SuperStart: Ignite 2023!  🎉💙

We had so much fun last year, that we couldn’t help but do it all again!

SuperStart: Ignite 2023 will be bringing an all-new line-up of speakers from all around New Zealand and beyond, as well as sessions from some of our very own!
Stay tuned to our Facebook and Instagram as we introduce them in the coming weeks!

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Christchurch Real Estate: November 2022 Update

Jim Davis, Harcourts Christchurch/South Island Regional Manager, shares his latest view on the property market in Christchurch.

With just one week to go until Christmas day, it’s fair to say the interest in the property market locally will not be a high priority for most people over the next few weeks! However, for those of you who are in the market currently or perhaps are thinking about what your options and choices are over the holiday season then the following information may be helpful.

There are a lot of comments out in the marketplace currently and the current situation is best summed up by the following statement. “Buyers are again weighing up the likely impact on mortgage rates with current downward pressure on property prices. Those thinking of selling are again looking at the market and asking, ‘is this the right time?”

So, is this the right time?

All I can say is that you have all the information currently available, and all the information indicates that Harcourts in Christchurch should be the brand of your choice. The right time is when you are ready and if you are ready then now is as good a time as any. The bigger decision is choosing the right person and the right company to represent you. It’s interesting that even some of the builders and developers who previously did it all themselves are now asking Harcourts to help sell their stock. If you need any more convincing this data might help:

REINZ Figures:
Median $680,000
Average $767,140

Harcourts Figures:
Median $715,000
Average $790,433

You have all the facts; all you need to do is decide whether “the time is right now?”
If so, Harcourts is the logical choice.

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Proud to Support Cholmondeley Children’s Centre

Donate a gift and bring a smile to a child’s face, who otherwise might go without.

A vital part of the Holmwood culture is giving back to our community. This Christmas we will once again be supporting Cholmondeley Children’s Centre.

Cholmondeley Children’s Centre provides short-term emergency and planned respite care and education to children aged 3-12 years whose families are experiencing genuine stress or crisis. Their aim is to give these children the opportunity to build their resilience, while issues at home are resolved. We are extremely proud to support this important charity.

You Can Help Too!

  • Gifts needed for children aged 3–12 years
  • If you’re having trouble deciding on a gift, gift vouchers from retailers like Toy World and Farmers are great too
  • Donations of new, non-perishable food items or Christmas Hampers are welcome
  • For monetary donations please visit cholmondeley.org.nz/support-us/donate

We are collecting presents for these children under the Christmas tree in our Auction Room. If you would also like to support this worthy cause, please bring your gifts to the upstairs reception of our head office at 397 Ilam Road before midday on Wednesday 7th December (unwrapped).

You can also visit www.cholmondeley.org.nz to read more about the amazing work Cholmondeley do in the community to help families flourish.

Thank you for your continued support.

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We’ve struck gold for the sixth consecutive year!

Harcourts is thrilled to have been awarded the Reader’s Digest Quality Service Gold Award in real estate agencies, as voted by the people of New Zealand, for the sixth year in a row.

We know that working with a real estate brand that truly understands your needs when it comes to buying, selling or investing is what really matters, so we are delighted that you have voted with your feet and yet again given us your gold seal of approval.

“In a challenging market in a year full of change, it is humbling to see first-hand that the team at Harcourts has yet again got the vote of confidence from New Zealanders,” says Harcourts New Zealand Managing Director Bryan Thomson.

“It is Harcourts’ consistent commitment to service excellence that has been instrumental in us retaining the Gold Quality Service Award for six years and the Reader’s Digest Most Trusted Award for 10 consecutive years. We are proud of our people from all across New Zealand and what they deliver but even when we know we are winning awards such as this, our people continue to strive to be the best. This is what keeps Harcourts at the top.”

This year’s Reader’s Digest Quality Service awards are based on five pillars: understanding, consistency, simplicity, satisfaction and personalisation. Market research agency, Catalyst, surveyed 1,620 New Zealanders who were asked to nominate a service provider in a wide range of categories, including real estate agencies. To qualify to vote in a category, the respondent must have used a service provider from that industry.

In the research our clients told us that “Harcourts have a knowledgeable team who go the extra mile” and that “Harcourts went over and beyond what they expected.” Reader’s Digest says it is confident that the Quality Service survey results for 2023 are a truly accurate measurement of New Zealand consumer sentiment.

If you’re buying or selling property,
we’re here to help.

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Landlord responsibilities

Section 45 of the Residential Tenancies Act – Landlord responsibilities

Section 45(1) of the Residential Tenancies Act 1986 (RTA) lists the Landlord Responsibilities, with the most important, or perhaps most obvious responsibilities being at the beginning, which is where we will focus for the purpose of this article.

It is important to be aware that failure by the landlord to comply with any of paragraphs (a) to (ca) below is declared to be an unlawful act and may attract exemplary damages payable to the tenant of up to $7,200. In recent cases, the Tenancy Tribunal has awarded tenants $4,000 in exemplary damages for premises being provided to tenants when they do not meet a reasonable state of cleanliness.

(a) Provide the premises in a reasonable state of cleanliness – It is a reasonable expectation for anyone moving into a new home, whether a purchaser or a tenant, or even hiring an Airbnb or a hotel room, that the premises are reasonably clean, and it is the landlord’s responsibility to ensure a rental premises meets this standard. Your Harcourts property manager understands the ‘reasonably clean’ standard, however interestingly, tribunal adjudicators have stated in tribunal decisions that there is an expectation that landlords will professionally clean a rental premises between tenancies, therefore acknowledging that there is a difference between the expectation of ‘reasonably clean’ when a tenant vacates, to the standard expected of ‘reasonably clean’ when a tenant moves in.

“The landlord shall provide and maintain the premises in a reasonable state of repair….”.

(b) When a tenancy commences, the property must be provided in a reasonable state of repair. It is an unlawful act to provide a property in disrepair, and rather to get the work performed after a tenant has moved in.

The next requirement is that the premises must be maintained in a reasonable state of repair. This includes any fixtures or fittings, or chattels. For example, if the property is rented with an alarm system and the alarm stops working during a tenancy, the landlord must repair or replace it. This is the same as an old fridge. You cannot include an item on the Tenancy Agreement in an ‘as is where is’ state, and then decide not to repair it. In this case, the landlord would be well advised to remove any item they do not intend to maintain.

Interestingly in the past few years since the Healthy Homes Guarantee Act became law, the healthy homes standards (HHS) are cited in complaints and referenced in tenancy tribunal hearings when properties are not in good repair, however not all homes are required to meet the healthy homes standards, yet.

All private rentals must comply with all five of the healthy homes standards within 90 days of any new or renewed tenancy after 1 July 2021, with all private rentals complying by 1 July 2024.

The healthy homes standards provide minimum standards for heating, ventilation for kitchens and bathrooms, moisture ingress and drainage, insulation (additional to 2019 legislation) and draught stopping.

Providing and maintaining premises in a reasonable state of repair has nothing to do with the healthy homes standards and has everything to do with being a requirement of the Residential Tenancies Act 1986.

Maintenance Examples vs Healthy Homes

Drainage– A standard property is likely to already have a drainage system that includes gutters, downpipes, and drains, and these need to be kept clear and working as part of the requirement to maintain a property in a reasonable state of repair. Therefore, landlords should have the gutters cleared regularly if this is necessary to ensure the drainage system is working properly. The HHS has simply made it law that all properties must now have efficient drainage systems.

Heating – Since 1947, it has been law that all properties must have a heating source in the living room, not just rental premises. Although some interpreted this to mean that a power point in the living room was sufficient as a heater can be plugged into the power point, this argument has not held up in recent tribunal cases. So, prior to the HHS, any heating source was acceptable, however now, the HHS heating standard states that the heat source must be fixed, efficient and meet the minimum heating capacity for the main living room.

Ventilation – If a property had an extraction fan in the bathroom, then it needs to be working. With the HHS, extraction fans must be ducted outside and any new fans since July 2019 must meet minimum requirements. Regardless, they must always be in working order.

Draught stopping – For the HHS draught stopping standard, landlords must make sure the property doesn’t have unreasonable gaps or holes in walls, ceilings, windows, skylights, floors and doors which cause noticeable draughts. However, a property in a reasonable state of repair does not have holes in the wall and it would be completely unreasonable to rent a property in this state. We don’t need the healthy homes standards to tell us this.

A property is not required to have a healthy homes assessment done between each tenancy, because quite simply, it is already legislated in the RTA that the premises must be maintained. So, once a property has been upgraded, or appliances installed, it is the landlord’s responsibility to ensure that these are maintained and are in good working order for the duration of the tenancy.

(ba) Smoke alarms – Smoke alarms protect both the occupants/tenants and the property, and Harcourts encourages all landlords to comply with industry best practice and have the supply and testing of smoke alarms outsourced. Your Harcourts property manager can recommend suitably qualified and experienced companies for this service.

(bb) Healthy homes compliance – Landlords must meet the healthy homes standards by the compliance date for their current tenancy, or by 1 July 2024, whichever is sooner. Harcourts advice is to meet the standards as soon as possible to retain great tenants.

(bd) Contaminants – There are regulations being developed by Government setting out acceptable levels of meth contamination, however these are not in place yet. Always get advice from your Harcourts property manager if you suspect that your property may be contaminated.

(c) Compliance – Landlords have an obligation to ensure that any premises that are rented must be lawful and in good condition and must comply with all legal requirements before being rented out. This includes requirements around buildings, health, and safety.

There are other responsibilities listed on Section 45(1) (included) which are likely to be selfexplanatory. Contact your Harcourts property manager if you have any questions.

Section 45 – Landlord Responsibilities

(1) The landlord shall—

(a) provide the premises in a reasonable state of cleanliness; and

(b) provide and maintain the premises in a reasonable state of repair having regard to the age and character of the premises and the period during which the premises are likely to remain habitable and available for residential purposes; and

(ba) comply with all requirements in respect of smoke alarms imposed on the landlord by regulations made under section 138A; and

(bb) comply with the healthy homes standards; and

(bc) [Repealed]

(bd) comply with all requirements in respect of contaminants imposed on the landlord by regulations made under section 138C(3)(c); and

(c) comply with all requirements in respect of buildings, health, and safety under any enactment so far as they apply to the premises; and

(ca) if the premises do not have a reticulated water supply, provide adequate means for the collection and storage of water; and

(d) compensate the tenant for any reasonable expenses incurred by the tenant in repairing the premises where—

(i) the state of disrepair has arisen otherwise than as a result of a breach of the tenancy agreement by the tenant and is likely to cause injury to persons or property or is otherwise serious and urgent; and

(ii) the tenant has given the landlord notice of the state of disrepair or made a reasonable attempt to do so; and

(e) take all reasonable steps to ensure that none of the landlord’s other tenants causes or permits any interference with the reasonable peace, comfort, or privacy of the tenant in the use of the premises.

This article was featured in Property Management Focus Issue 10, 2022.

 

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Property Management Focus – October

Section 45 of the Residential Tenancies Act –
Landlord responsibilities

Section 45(1) of the Residential Tenancies Act 1986 (RTA) lists the Landlord Responsibilities, with the most important, or perhaps most obvious responsibilities being at the beginning, which is where we will focus for the purpose of this article.

It is important to be aware that failure by the landlord to comply with any of paragraphs (a) to (ca) below is declared to be an unlawful act and may attract exemplary damages payable to the tenant of up to $7,200. In recent cases, the Tenancy Tribunal has awarded tenants $4,000 in exemplary damages for premises being provided to tenants when they do not meet a reasonable state of cleanliness.

  • Provide the premises in a reasonable state of cleanliness – It is a reasonable expectation for anyone moving into a new home, whether a purchaser or a tenant, or even hiring an Airbnb or a hotel room, that the premises are reasonably clean, and it is the landlord’s responsibility to ensure a rental premises meets this Your property manager understands the ‘reasonably clean’ standard, however interestingly, tribunal adjudicators have stated in tribunal decisions that there is an expectation that landlords will professionally clean a rental premises between tenancies, therefore acknowledging that there is a difference between the expectation of ‘reasonably clean’ when a tenant vacates, to the standard expected of ‘reasonably clean’ when a tenant moves in.

“The landlord shall provide and maintain the premises in a reasonable state of repair….”.

  • When a tenancy commences, the property must be provided in a reasonable state of It is an unlawful act to provide a property in disrepair, and rather to get the work performed after a tenant has moved in.The next requirement is that the premises must be maintained in a reasonable state of repair. This includes any fixtures or fittings, or chattels. For example, if the property is rented with an alarm system and the alarm stops working during a tenancy, the landlord must repair or replace it. This is the same as an old fridge. You cannot include an item on the Tenancy Agreement in an ‘as is where is’ state, and then decide not to repair it. In this case, the landlord would be well advised to remove any item they do not intend to maintain. Interestingly in the past few years since the Healthy Homes Guarantee Act became law, the healthy homes standards (HHS) are cited in complaints and referenced in tenancy tribunal hearings when properties are not in good repair,however not all homes are required to meet the healthy homes standards, yet.

All private rentals must comply with all five of the healthy homes standards within 90 days of any new or renewed tenancy after 1 July 2021, with all private rentals complying by 1 July 2024.

The healthy homes standards provide minimum standards for heating, ventilation for kitchens and bathrooms, moisture ingress and drainage, insulation (additional to 2019 legislation) and draught stopping.

Providing and maintaining premises in a reasonable state of repair has nothing to do with the healthy homes standards and has everything to do with being a requirement of the Residential Tenancies Act 1986

Maintenance Examples vs Healthy Homes

Drainage– A standard property is likely to already have a drainage system that includes gutters, downpipes, and drains, and these need to be kept clear and working as part of the requirement to maintain a property in a reasonable state of repair. Therefore, landlords should have the gutters cleared regularly if this is necessary to ensure the drainage system is working properly. The HHS has simply made it law that all properties must now have efficient drainage systems.

Heating – Since 1947, it has been law that all properties must have a heating source in the living room, not just rental premises. Although some interpreted this to mean that a power point in the living room was sufficient as a heater can be plugged into the power point, this argument has not held up in recent tribunal cases. So, prior to the HHS, any heating source was acceptable, however now, the HHS heating standard states that the heat source must be fixed, efficient and meet the minimum heating capacity for the main living room.

Ventilation – If a property had an extraction fan in the bathroom, then it needs to be working. With the HHS, extraction fans must be ducted outside and any new fans since July 2019 must meet minimum requirements. Regardless, they must always be in working order.

Draught stopping – For the HHS draught stopping standard, landlords must make sure the propertydoesn’t have unreasonable gaps or holes in walls, ceilings, windows, skylights, floors and doors which cause noticeable draughts. However, a property in a reasonable state of repair does not have holes in the wall and it would be completely unreasonable to rent a property in this state. We don’t need the healthy homes standards to tell us this.

A property is not required to have a healthy homes assessment done between each tenancy, because quite simply, it is already legislated in the RTA that the premises must be maintained. So, once a property has been upgraded, or appliances installed, it is the landlord’s responsibility to ensure that these are maintained and are in good working order for the duration of the tenancy.

(ba) Smoke alarms – Smoke alarms protect both the occupants/tenants and the property, and Harcourts encourages all landlords to comply with industry best practice and have the supply and testing of smoke alarms outsourced. Your property manager can recommend suitably qualified and experienced companies for this service.

(bb) Healthy homes compliance – Landlords must meet the healthy homes standards by the compliance date for their current tenancy, or by 1 July 2024, whichever is sooner. Harcourts advice is to meet the standards as soon as possible to retain great tenants.

(bd) Contaminants – There are regulations being developed by Government setting out acceptable levels of meth contamination, however these are not in place yet. Always get advice from your property manager if you suspect that your property may be contaminated.

Compliance – Landlords have an obligation to ensure that any premises that are rented must be lawful and in good condition and must comply with all legal requirements before being rented out. This includes requirements around buildings, health, and safety.

There are other responsibilities listed on Section 45(1) (included) which are likely to be self- explanatory. Contact your property manager if you have any questions.

Section 45 – Landlord Responsibilities

  • The landlord shall—
    • provide the premises in a reasonable state of cleanliness; and
    • provide and maintain the premises in a reasonable state of repair having regard to the age and character of the premises and the period during which the premises are likely to remain habitable and available for residential purposes; and

(ba) comply with all requirements in respect of smoke alarms imposed on the landlord by regulations made under section 138A; and

(bb) comply with the healthy homes standards; and

(bc) [Repealed]

(bd) comply with all requirements in respect of contaminants imposed on the landlord by regulations made under section 138C(3)(c); and

  • comply with all requirements in respect of buildings, health, and safety under any enactment so far as they apply to the premises; and

(ca) if the premises do not have a reticulated water supply, provide adequate means for the collection and storage of water; and

  • compensate the tenant for any reasonable expenses incurred by the tenant in repairing the premises where—
    • the state of disrepair has arisen otherwise than as a result of a breach of the tenancy agreement by the tenant and is likely to cause injury to persons or property or is otherwise serious and urgent; and
    • the tenant has given the landlord notice of the state of disrepair or made a reasonable attempt to do so; and
  • take all reasonable steps to ensure that none of the landlord’s other tenants causes or permits any interference with the reasonable peace, comfort, or privacy of the tenant in the use of the

Healthy Homes Standard Assessments
and making a plan

Did you know that if you have not had your rental property assessed for its current level of compliance with the healthy homes standards and it becomes vacant, you will not be able to re-tenant the property until you do?

Meet Bob

Let’s look at a likely scenario with our hypothetical landlord, Bob. In November, a tenant gives Bob notice to vacate his property on 12 December 2022. Bob, who lives two hours away, does not know the property’s current level of compliance with the healthy

homes standards. Bob now needs to do the following:

  • Establish the required heating capacity for the main living room using the Heating Assessment Tool at

tenancy. govt.nz/heating-tool or the formula contained in schedule 2 of the RTA (HHS) Regulations 2019.

  • Complete the six pages dedicated to Insulation on the compliance This is easy for Bob as he installed new insulation in July 2018. Otherwise, he may have needed a professional assessment.
  • Bob needs to know what extraction fans are installed and ensure they are in good working order and ducted If they were installed after 1 July 2019, he needs to know the diameter or exhaust capacity.
  • He must inspect gutters and downpipes to ensure they efficiently drain storm, surface, and ground water to an appropriate
  • He needs to know if his property requires a ground moisture barrier, and if it has one installed or Bob has not looked under the house for a long time.
  • Bob also needs to understand how to meet the requirements in the draught stopping standard, and he thinks this standard should be met as soon as

Bob decides that he does not have the appropriate skills to perform these checks himself, particularly determining the heating capacity using the assessment tool as measuring rooms is required. He decides to employ a professional, but there is a delay in getting an appropriately qualified assessor to inspect the property due to the demands on the industry. A date of 17 December is given, and the report will be provided within three business days. On 21 December, when the report is received, the property can be rented, and the tenancy agreement prepared with the required compliance statements.

Unfortunately, it is now close to Christmas and tenants are not moving. The property remains vacant until mid-January. Bob loses five weeks rent. Don’t be like Bob.

Bob now has several applications and has selected his preferred tenant. Bob completes the current level of compliance statement as part of preparing the tenancy agreement and now has just 90 days to meet all five of the healthy homes standards.

Bob wishes he had made a plan earlier, as he now has to pay for extraction fans and a heat pump all at once, and after a long vacancy period. Ouch!

Make a plan

On the healthy homes standards current level of compliance statement, which is required for all new and renewed tenancies, landlords must not only complete the 16- page document that discloses the property’s current level of compliance for each of the five healthy homes standards, but they will also have just 90 days from the start of any new or renewed tenancy to meet the standards. Once your property is assessed, a plan is needed to comply with the standards.

Our Property Managers are working with landlords to avoid situations and vacancy periods like those experienced by Bob, but with the time it can take to get an assessment done, scenarios like Bob’s can be commonplace.

Don’t wait for your existing tenant to get fed up with a property that doesn’t meet the healthy homes standards and give notice, only to leave you searching for a new tenant and still having only 90 days to meet the standards. Speak to your Harcourts property manager for advice, get your property professionally assessed and make your plan to meet the standards now!

Article reproduced and updated from PM Focus September 2020 edition.

Harcourts Property Management Leadership Conference

Our leadership team at Harcourts is persistent in their strive for excellence. That’s how we offer and deliver next-level client service in Property Management.

Harcourts New Zealand’s Property Management Leadership Conference 2022 was a day of learning and collaborating on how we can provide an innovative and industry-leading approach in our work with landlords and tenants.

We were lucky enough to be joined by guest speakers – Harcourts Managing Director, Bryan Thomson, Tenancy.co.nz Managing Director Craeg Williams, Mortgage Express CEO, Sarah Johnston, and International Property Management

Trainer, Darren Hunter. In sharing their expertise, our attendees walked away with crucial insider knowledge, ready to apply to their craft and lead their teams in the pursuit of excellence.

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#gavelandgumboots

Together with the Harcourts Foundation, Holmwood is getting behind Gumboot Friday!

What is Gumboot Friday?

Gumboot Friday is a nationwide initiative which provides FREE kids counselling when it is really needed. Since April 2019 Gumboot Friday has raised over 3 million dollars for free kids counselling. From this they have paid for over 21,000 sessions for just under 10,000 kids. The average cost per session is $138.00. They anticipate that with the money they have and what will be raised over the next 12 months, Gumboot Friday will pay for a further 20,000 free sessions before the end of 2023.

Mike King, who is the founder of ‘I am Hope,’ the organisation behind the Gumboot Friday initiative, shed light on the mental health crisis in New Zealand and about the positive impact the donation from Harcourts Foundation will make to the children who access the free counselling service. He said, ‘Gumboot Friday pays directly for the counselling services which helps get these kids struggling with depression and feeling like they are walking in mud, to build a better, brighter future.’

This is something that Emma Revell, Harcourts Foundation Ambassador understands the importance of. She said, ‘It is vital that we get behind initiatives like Gumboot Friday which will help these young people receive the counselling services that are so desperately needed.’

How is Holmwood supporting Gumboot Friday?

We are supporting this incredible cause in two ways:

  1. For every auction held between 18th October and November 4th, Holmwood will donate a portion to Gumboot Friday – how good is that!
  2. We are ditching the frocks, shirts, and ties just for a day as we would LOVE to see our whole Holmwood team supporting this cause; we’ll do this by purchasing a Gumboot Friday top and they will wear it on Friday 4 November.

You can join us too, just get your orders in asap to ensure they are here on time. ALL proceeds go directly back to ‘I am Hope’ https://i-am-hope-nz.myshopify.com/collections/all

Share your photo with us too! #gavel&gumboots

To learn more how you can support Gumboot Friday:
Visit www.gumbootfriday.org.nz
Follow them on Instagram @gumbootfriday.
Gumboot Friday Facebook https://www.facebook.com/gumbootupNZ