Some more of Dan’s thoughts on our Industry
In last month’s Newsletter I did forget to mention that all of the new Legislation we are now dealing with and including the Healthy Homes Standards Statement is pointing all Properties to have a Rental Warrant of Fitness, this will be the Governments way of generating revenue (as you will have to renew it on a regular basis with a charge from them) to help pay for the policing of our Landlords complying with the new Legislation through Tenancy Services who currently audit and then prosecute if you aren’t compliant.
In regard to last month’s Newsletter if you missed it please email me to receive April and May’s update on your Residential Property Investment Business.
Now an update on Methamphetamine use in our Residential Investments
REINZ has called for greater clarification from the Government on the acceptable meth testing levels for Properties, as confusion between the ‘Ministry of Health/New Zealand Standard’ 1.5 µg/100 cm2 level and the ‘Gluckman Report’ level of 15.0 µg/100 cm2 continues to cause chaos for Real Estate Agents, Property Managers and Landlords.
According to the Tenancy Services website, new regulations were due to be developed as part of the Residential Tenancies Amendment Act 2019 which would set out: the maximum acceptable level for meth contamination; the process for testing; and the decontamination of Rental Properties. However, this is work is still to be completed, and the delay is causing significant issues across the Industry.
Wendy Alexander, Acting Chief Executive at REINZ says: “Since the Gluckman Report was published in 2018, the governing body for Real Estate Professionals has advised that meth contamination of 15.0ug/100cm2 or above is considered a Property defect that must be disclosed to potential Buyers.
Property Managers and Landlords are also facing similar challenges with Rental Properties.
“Some Insurance Companies will pay out at the NZ Standard level and others will only pay out at the Gluckman Report level. Some Tenancy Tribunal Adjudicators use the Gluckman Report, some use the New Zealand Standard, and others use a combination of both when making a ruling,” she points out.
Property Managers and Landlords also face issues around Health and Safety and what is deemed ‘reasonably clean’.
“Additionally, there are effectively two different rates – one for outgoing Tenants and one for ingoing Tenants.
“Unsurprisingly, Owners are extremely frustrated with the situation and don’t know where they stand. Some Owners have given up entirely and are no longer meth testing Properties between a change of Tenants, further compounding the problem” continues Alexander.
“Real Estate Agents, Property Managers and Landlords are all crying out for clarity from the Government and for one set of guidelines to work to. Methamphetamine is still a Class A drug and its use is illegal, which just further compounds what is already a difficult situation.
I will continue to update you with any further developments as they come to light.
Don’t hesitate to contact Dan firstname.lastname@example.org if you have any queries.