New insulation standards have been introduced that require rental properties to have ceiling insulation and subfloor insulation by July 2019.
New Insulation Legislation for Residential Rental Properties
Concrete slabs qualify as underfloor insulation, as does habitable space immediately below. Officials estimate there are 180,000 rental properties that will require retrofitting of insulation.
There are three exemptions to the new law:
- Properties where its impractical to retrofit due to limitations in the property’s physical design – for example because of limited underfloor space
- Properties which are sold and immediately rented back to the former owner-occupier for a period of up to 12 months.
- Properties where within 12 months for the start of a tenancy, the landlord intends to demolish the property or substantially rebuild part of the property.
The average cost of retrofitting insulation is around $3,000.
Generally new insulation is considered an improvement and is not tax deductible. If you have queries about the tax deductibility of repairs/improvements to your rental property please come and to talk to us.
P Contamination in Rental Properties
Methamphetamine contamination in rental houses is a highly sensitive subject that attracts huge conjecture and publicity (with good reason in some cases).
There is confusion in the market as to what constitutes dangerous levels of this substance, with the health department providing guidelines only. This has led to speculation, and a number of commentators disagree on what is, or is not, considered healthy levels. The REINZ has set up a working group with police, health officials, property managers and other interested parties to explore the issues and hopefully provide more clarity.
Right now, if you’re an owner/investor, the best action you can take is to ensure you are fully insured against your property testing positive of this potentially dangerous substance.
We suggest you contact your insurance company to check that you have adequate cover.