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tenancy

Penalties for landlords who ignore Healthy Homes rules

Key Takeaway

Landlords in New Zealand must ensure their rental properties comply with Healthy Homes Standards by set deadlines. Failure to meet these standards or to provide a compliance statement constitutes an unlawful act. The Tenancy Tribunal can impose pecuniary penalties up to $7,200 and may also award exemplary damages for intentional or reckless breaches.

Landlord Penalties for Non-Compliance with Healthy Homes Standards

The Healthy Homes Standards (HHS) are a set of minimum standards for heating, insulation, ventilation, moisture ingress and drainage, and draught stopping in rental properties [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, reg 5]. These standards aim to ensure rental homes are warmer, drier, and healthier for tenants. Landlords have specific obligations to meet these standards, and failure to comply can result in significant penalties.

What are the Healthy Homes Standards?

The Healthy Homes Standards cover five key areas:

  • Heating: Rental properties must have a fixed heater that can directly heat the main living room to at least 18 degrees Celsius [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, reg 7].
  • Insulation: Rental properties must have adequate ceiling and underfloor insulation [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, reg 8].
  • Ventilation: All habitable rooms must have openable windows, and kitchens and bathrooms must have extractor fans or equivalent ventilation [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, reg 9].
  • Moisture Ingress and Drainage: Rental properties must have efficient drainage and ground moisture barriers where necessary to prevent moisture entering the home [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, reg 10].
  • Draught Stopping: Landlords must block any unreasonable gaps or holes in walls, ceilings, windows, skylights, floors, and doors that cause draughts [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, reg 11].

Landlord Obligations

Landlords have several obligations regarding the Healthy Homes Standards:

  • Compliance Deadlines: All private rental properties must comply with the HHS by 1 July 2024 [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, reg 6 (as amended by Residential Tenancies (Healthy Homes Standards) Amendment Regulations 2022, reg 4)]. For new or renewed tenancy agreements, compliance may have been required earlier, depending on when the agreement started or was renewed [Source: Residential Tenancies (Healthy Homes Standards) Regulations 2019, reg 6 (as amended)].
  • Providing a Compliance Statement: Landlords must include a Healthy Homes Standards compliance statement with any new, varied, or renewed tenancy agreement [Source: Residential Tenancies Act 1986, s 13A(1A)]. This statement must outline the landlord's current level of compliance with each standard [Source: Residential Tenancies Act 1986, s 13A(1A)].
  • Maintaining Compliance: Landlords must ensure the premises comply with the Healthy Homes Standards throughout the entire tenancy [Source: Residential Tenancies Act 1986, s 45(1)(bb)]. The Residential Tenancies Act 1986 (RTA 1986) is the primary legislation governing the rights and responsibilities of landlords and tenants in New Zealand.

Tenant Rights

Tenants have a right to live in a rental property that complies with the Healthy Homes Standards. If a landlord fails to meet their obligations, tenants can apply to the Tenancy Tribunal. The Tenancy Tribunal is a judicial body that resolves disputes between landlords and tenants in New Zealand [Source: Residential Tenancies Act 1986, s 77].

Penalties for Non-Compliance

Failure by a landlord to comply with the Healthy Homes Standards or to provide the required compliance statement constitutes an unlawful act. An unlawful act is an action or omission by a landlord or tenant that breaches a specific provision of the Residential Tenancies Act 1986 and for which the Tenancy Tribunal may impose a penalty.

Failure to Comply with Healthy Homes Standards

If a landlord fails to ensure the rental property complies with the Healthy Homes Standards, they are committing an unlawful act [Source: Residential Tenancies Act 1986, s 45(1)(bb), s 45(2)]. The Tenancy Tribunal may:

  • Order the landlord to remedy the breach, for example, by carrying out necessary work to bring the property up to standard [Source: Residential Tenancies Act 1986, s 85].
  • Order the landlord to pay a pecuniary penalty up to $7,200 [Source: Residential Tenancies Act 1986, s 109(3)(a)]. A pecuniary penalty is a financial penalty or fine ordered by a court or tribunal.

Failure to Provide a Healthy Homes Compliance Statement

Failure to provide a Healthy Homes Standards compliance statement with a new, varied, or renewed tenancy agreement is also an unlawful act [Source: Residential Tenancies Act 1986, s 13A(1B)]. For this breach, the Tenancy Tribunal can impose a pecuniary penalty up to $7,200 [Source: Residential Tenancies Act 1986, s 109(3)(a)].

Exemplary Damages

In addition to pecuniary penalties, if an unlawful act is committed intentionally, or with reckless disregard for the tenant's interests, the Tenancy Tribunal may also order exemplary damages against the landlord [Source: Residential Tenancies Act 1986, s 109(3)(b)]. Exemplary damages are a sum of money ordered to be paid by one party to another to punish the party at fault and deter similar behaviour, rather than to compensate for actual loss. The maximum amount for exemplary damages for an unlawful act committed by a landlord is $7,200 [Source: Residential Tenancies Act 1986, s 109(3)(b)].

When to Seek Independent Legal Advice

If a landlord or tenant has concerns about Healthy Homes Standards compliance, potential breaches, or is considering making an application to the Tenancy Tribunal, it is recommended to seek independent legal advice. Information can be obtained from the Ministry of Business, Innovation and Employment, or by contacting a lawyer or a Community Law Centre for free advice at https://communitylaw.org.nz/.

Key Resources