Announced in February, the HHS, according to the Ministry of Business and Innovation sets minimum standards “for heating, insulation, ventilation, draught stopping, moisture ingress and drainage in rental properties”.
The Standards have been on the horizon for property investors for a few years now, with parameters set by the Healthy Home Guarantee 2017.
If you own an investment property and are renting it to a third party, you need to make sure you’re meeting all your requirements under the new law.
It’s win-win
Contrary to popular belief, landlords are not in the firing line with the new Standards. The idea behind them is undeniable – to create better living conditions for renters, who often live in older and poorer quality dwellings than owner-occupied homes. With less autonomy to make improvements, the 600,000 households in New Zealand who rent, can’t make the necessary changes to a home they don’t own. From your average Dunedin student flat to an older villa inhabited by a family of four in Auckland – the HHS will ensure all rental properties are maintained to minimum liveable requirements.
But renters aren’t the only ones who win. Property investors can look at this as an opportunity to renovate a rental and maximise a return on investment, capitalising on a rental yield.
If you’re purely making repairs to your investment property, make sure you check out our blog on what you can claim back on your annual tax return.