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Property Brokers - Property Management Compliance Guidelines

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Compliance Guidelines What you need to know

pb.co.nz Property Brokers Ltd Licensed REAA 2008


Contents Smoke alarms Regulations

2

Policy

3

Insulation Regulations

4

Policy

5

Exemptions

6

Healthy Homes Standards (HHS) Regulations

7

Asbestos Regulations

17

Management plan

18

Best practice

20

Policy

21

Methamphetamine Regulations

22

Best practice

23

FAQ’s

24

Resources

25


Smoke alarms Regulations

The requirement for smoke alarms in rental properties has been in place since July 2016. Every rental property requires working smoke alarms during the tenancy and there are specific requirements for the types of alarms that are used. Smoke alarms must be installed: •

Within three metres of each bedroom door or in every room where a person sleeps

•

In each level or story of a multi-story or multi-level home

•

In all rental homes, boarding houses, rental caravans, and self-contained sleep-outs.

Landlords must ensure smoke alarms: •

Are working at the start of each new tenancy

•

Remain in working order during the tenancy

Tenants must: •

Not damage, remove or disconnect a smoke alarm

•

Replace dead batteries during the tenancy if there are older-style smoke alarms with replaceable batteries

•

Let the landlord know if there are any problems with the smoke alarms as soon as possible.

All new smoke alarms must: •

Be photoelectric

•

Have a battery life of at least eight years, or be hard-wired

•

Have the expiry date recorded

•

Installed according to the manufacturer’s instructions

•

Meet international standards. Existing smoke alarms do not need to be replaced if they are working and have not exceeded the expiry date.

Interconnected Smoke Alarms

Landlords can enter the property to comply with smoke alarm requirements. 24 hours’ notice must be given and entry must be between the hours of 8am and 7pm. If landlords do not meet their obligations, they could be fined up to $7,200 and their insurance could be voided. If tenants do not meet their obligations they could be fined up to $4,000.

. From November 2024 the NZ Building Code Acceptable Solutions for Protection from Fire (C/AS1 and C/AS2) has been amended to make interconnected smoke alarms the minimum fire safety system for new built homes and consented renovations, citing NZS 4514:2021 – Interconnected smoke alarms for Houses. The standard allows for wirelessly or hard-wired interconnection, using either 10-year long-life battery-powered or 240v mains powered alarms

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Smoke alarms Policy

The following illustration outlines best-practice when installing smoke alarms. Property Brokers’ policy is that an alarm should be installed no more than three metres from the bedrooms and on each level of a multi-story home.

Bedroom

Bedroom

Bedroom

Bathroom

Kitchen

Living room

Minimum

Also recommended by Fire and Emergency New Zealand

Property Brokers’ Policy

Recommended Testing Agency:

1. Every property under management requires smoke alarms.

The following is an example of a reputable testing agency.

2. We cannot manage a property, unless;

•

• •

The property has the correct alarms installed The owner agrees to install the correct alarms at the commencement of a new tenancy.

3. All alarms are to be installed and checked before a tenancy begins.

Smoke Alarm Testing Services (SATS) sats.co.nz

Generally, it will cost between $80.00 - $130.00 (excluding GST) to have smoke alarms professionally monitored each year. Talk to your Property/Branch Manager about potential options for your property.

4. Alarms can be checked during an inspection, using a CRC Smoke Spray. 5. The alarms are to be checked and photographed between tenancies. 6. Each tenancy agreement must reference all alarms in the property.

3


Insulation Regulations

Ceiling and underfloor insulation must be installed in rental homes where it is reasonably practicable since July 2019. The insulation must meet the standards set out in the insulation regulations and be installed safely and correctly. Wall insulation is not compulsory. The insulation regulations apply to any residential rental property covered by the Residential Tenancies Act. How to meet the insulation regulations: Insulation is rated by how well it resists heat flow, measured by the R-value. The higher the R-value, the better the insulation. Zone 1 Zone 2 Zone 3

Minimum R-values for Zones 1 and 2: •

Ceiling R 2.9

•

Underfloor R 1.3

Minimum R-values for Zone 3: •

Ceiling R 3.3

•

Underfloor R 1.3

The zones shown on the map provide an overview of what R-value is required for each area. A large majority of the Property Brokers’ portfolio in the North Island is Zone 2, and all of the South Island is Zone 3. If a rental property is below these levels of insulation, it must be upgraded to meet the new standard immediately. Where there are multiple layers of insulation and all layers are in reasonable condition, the product R-values may be combined.

4


Insulation Policy

As of July 2019, every rental property needs to comply with the Insulation Standards. The original standards of 70mm or more have now been increased to a 120mm minimum thickness. Under the healthy homes standards, all rental properties will need to have insulation which meets the 2008 Building Code. Houses with existing ceiling insulation must have a minimum thickness of at least 120mm. The only exception to the insulation requirement is if the property meets one of the exemptions detailed on the following page. Property Brokers’ Policy 1. Any existing or new property can not be tenanted until it meets the Insulation Requirements. 2. New Properties •

Any new property from July 2019 must have a compliance certificate provided by an approved installer

•

If the insulation was installed by the owner, they must provide evidence of what was installed, such as receipts and/or photos

•

If the owner is unable to provide what is required or is unaware of the status, then the property will need to be assessed to determine whether it is compliant.

3. Insulation details, certificates and any other documents about insulation need to be kept on file for that property. 4. No rental properties can be advertised until adequate insulation has been installed. Property Brokers will not market a noncompliant property. 5. Any tenancy agreement, whether it is new, renewal or change, must stipulate the insulation within the agreement. If an owner does not comply with our policy, we cannot manage the property.

5


Insulation Exemptions

Examples of types of properties that would meet the exemption criteria are: •

Apartments where there is a habitable space above and below the apartment

•

Houses constructed on concrete slabs where it is not feasible to install underfloor insulation

•

Houses with ‘skillion’ roofs where there is no ceiling in place to install insulation above.

Access exemptions - Installation is not considered ‘reasonably practicable’: •

When you can not access the location to install insulation without removing any cladding or lining, carrying out other substantial building work, or causing significant damage to the property

•

You can not install insulation without creating health or safety risks to people, when these risks are greater than the normal level of risk when installing insulation

•

Access to the ceiling or underfloor can be achieved by carrying out minor work, (e.g. temporarily removing baseboards from the exterior of the property to access the underfloor), the landlord is expected to do so

•

Changes are made to an exempt property that then allows insulation to be fitted, (for example a new roof). It must be installed as soon as reasonably practicable.

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Other exemptions to insulation requirements: •

Where the landlord intends to demolish or substantially rebuild all or part of the property within 12 months of the start of a tenancy. In this case, the landlord must, if requested, provide evidence of having applied for the necessary resource consent and/or building consent for the redevelopment or building work

•

When a property is purchased from, and immediately rented back to the former owner-occupier – in which case a 12-month exception will apply from the date of purchase

•

Where the landlord can provide evidence that the insulation is still in reasonable condition and that when originally installed, it complied with particular insulation requirements.

Written confirmation of exemption: If a landlord is in any doubt whether insulation can be installed in their rental property, they should consult an experienced professional insulation installer and, if needed, a builder. If the experienced professional says insulating some areas is not reasonably practicable or not possible, the landlord must ask for written confirmation of said reasons to include in all tenancy agreements.


Healthy Homes Standards ( HHS) Regulations

The Healthy Homes Standards (HHS) are: •

Heating – Rental homes must have fixed heating devices in living rooms which can warm rooms to at least 18°C. Some heating devices are inefficient, unaffordable or unhealthy, and they will not meet the heating standard requirements.

•

Insulation – Rental homes must have ceiling, and underfloor insulation which meets the 2008 Building Code or, (for existing ceiling insulation), is at least 120mm thick.

•

Ventilation – Rental homes must have the right size extractor fans in kitchens and bathrooms and windows that can be opened in the living room, dining room, kitchen and bedrooms.

•

Moisture and drainage – Rental homes must have efficient drainage and guttering, downpipes and drains. If a rental home has an enclosed subfloor, it must have a ground moisture barrier if it’s possible to install one.

•

Draught-stopping – Rental homes must have no unnecessary gaps or holes in walls, ceilings, windows, floors, and doors that cause noticeable draughts. All unused chimneys and fireplaces must be blocked.

Compliance:

Since 1 July 2025, all private rental properties must fully comply with the Healthy Homes Standards at all times - from day one of any new or renewed tenancy. The previous 90-day and 120-day grace periods no longer exist. Renting out a non-compliant property is a breach of the Residential Tenancies Act 1986, with financial penalties of up to $7,200 per breach. Compliance must also be maintained throughout the tenancy - a property can drift out of compliance if, for example, heating fails or insulation is damaged.

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The following is a breakdown of each area covered in the Healthy Homes Standards. The information included within this guide has been extracted from Residential Tenancies (Healthy Homes Standards) Regulations 2019. For a comprehensive overview of these regulations, visit: legislation.govt.nz Heating A heater is a qualifying heater if; •

It is installed as a fixture to the premises; and either – ›

the heater (or if it is a fixed heat pump, the indoor unit) is in the living room; or

›

the heater supplies heat directly into the living room (for example, through a duct or vent located in the living room); and

›

it has a heating capacity of at least 1.5 kW; and

›

if it is an electric heater or a fixed heat pump, it has a thermostat; and

› •

•

the building has been certified as a passive house under the Passive House Standard of the Passivhaus Institut, Germany:

•

the International Living Future Institute has issued one of the following in respect of the building:

it is not an unacceptable heater.

Each of the following is an unacceptable heater: ›

an open fire

›

an unflued combustion heater

›

an electric heater (if the required heating capacity for the living room is greater than 2.4 kW).

In this regulation, electric heater means an electric heater that is not a fixed heat pump. Fixed heat pump means a heat pump that is permanently wired into the premises’ electrical system. Required heating capacity The required heating capacity for a living room is the required heating capacity determined in accordance with schedule 2 of the Healthy Homes Legislation.

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A building is a certified passive building if one of the following applies:

›

a Living Building Certification:

›

a Petal Certification that includes a heating related requirement:

›

a Zero Energy Certification; or

›

that certification has not lapsed, expired, been cancelled, or otherwise ceased to be in force.

Exemption from heating standard if not reasonably practicable to install - the main living room need not comply with it, at the commencement of the tenancy; •

the living room does not comply with that regulation (regulation 8); and

•

it is not reasonably practicable to install qualifying heaters so as to comply with that regulation.

This exemption ceases to apply if, during the term of the tenancy, it becomes reasonably practicable to install qualifying heaters.


Insulation

•

Ceiling insulation The ceiling of each domestic living space in the premises must be fully covered by qualifying ceiling insulation. However, the ceiling is not required to be fully covered if: •

another domestic living space, (whether or not part of the premises), is immediately above the ceiling; or:

•

clearances are reasonably required around any other item that is installed in, or above, the ceiling.

If insulation was installed in different areas of the ceiling at different times, subclause (1) applies separately to the insulation in each different area.

In this regulation, zone 1, zone 2, and zone 3 have the same meanings as in Appendix B of NZS 4218:2009. Underfloor insulation for suspended floors If a domestic living space in the premises has a suspended floor, that floor must be fully covered by qualifying underfloor insulation. However, the floor is not required to be fully covered if: •

another domestic living space, (whether or not part of the premises), is immediately below the floor; or

Ceiling insulation is qualifying ceiling insulation if all of the following apply:

•

clearances are reasonably required around any other item that is installed in or under the floor.

•

Qualifying underfloor insulation

Qualifying ceiling insulation

the insulation’s R-value when it was installed was; ›

if the premises are in zone 1 or zone 2, at least 2.9; or

›

if the premises are in zone 3, at least 3.3

› ›

Underfloor insulation is qualifying underfloor insulation if all of the following apply: •

the insulation’s R-value, when it was installed, was at least 1.3

installed in accordance with NZS 4246:2016

•

the insulation was installed in accordance with NZS 4246:2016

in a reasonable condition (or better).

•

the insulation is in a reasonable condition (or better).

If the ceiling insulation for an area of ceiling consists of two or more products installed on top of each other, the insulation’s R-value for the purposes of subclause (1)(a) is to be determined by; •

the R-value of each product when it was installed; and

•

adding those R-values together.

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Insulation (continued) If the underfloor insulation for an area of floor consists of two or more products installed on top of each other, the insulation’s R-value for the purposes of subclause (1)(a) is to be determined by; •

the R-value of each product when it was installed; and

•

adding those R-values together.

If insulation was installed under different areas of the floor at different times, subclause (1) applies separately to the insulation in each different area. Determining R-value of insulation - this regulation applies if, when insulation is installed; •

the insulation is a new product; and

•

the manufacturer’s instructions for the product specify its R-value.

The R-value of the insulation when it is installed is the R-value of the product specified in the manufacturer’s instructions. In this regulation, manufacturer’s instructions, in relation to an insulation product, includes any specification, instruction, recommendation, or other information relating to the product that is provided, or otherwise made available, in any way to buyers, installers, or users of the product by or on behalf of the product’s manufacturer. Determining whether insulation is in reasonable condition - in determining whether insulation is in reasonable condition (or better), the following matters must be taken into account: •

10

the extent to which the performance of the insulation is compromised by any aspect of its condition:

•

the extent of any dampness, damage, degradation, or displacement:

•

the condition of any materials or other items that are ancillary to the insulation’s installation (for example, strapping or staples).

•

without limiting subclause (1), ceiling insulation is not in reasonable condition if the minimum thickness of the insulation material is less than 120mm.

However, subclause (2) does not apply if the landlord proves that; •

the insulation’s R-value, when it was installed, was the value specified in the Insulation Regulations 2016

•

the current thickness of the insulation material is 70% or more of its thickness when it was installed (even if its current thickness is less than 120mm).

This regulation is not an exhaustive statement of the matters that may be taken into account. Exemption from insulation standards if not reasonably practicable to install. A ceiling need not comply with regulation 13 of the Insulation Regulation 2016 if, at the commencement of the tenancy; •

the ceiling does not comply with that regulation; and

•

it is not reasonably practicable to install insulation so as to comply with that regulation.


Insulation (continued) A floor need not comply with regulation 15 if, at the commencement of the tenancy; •

the floor does not comply with that regulation; and

•

it is not reasonably practicable to install insulation so as to comply with that regulation.

The exemption ceases to apply if, during the term of the tenancy, it becomes reasonably practicable to install insulation so as to comply with regulation 13 or 15.

This exemption ceases to apply if, during the term of the tenancy, either of the following occurs: •

the landlord receives a request for evidence and fails to provide reasonable evidence of document A to the person making the request within ten working days after the day on which the landlord receives the request; or

•

the landlord receives a Tribunal request or requirement for evidence and fails to comply with it within the time allowed by the Tribunal.

Partial exemption for certain thermal underfloor insulation - this regulation applies if; •

there is underfloor insulation covering a floor at the premises; and

•

when the insulation was installed, requirements relating to thermal insulation imposed by or under an enactment or a bylaw were applicable to the premises or tenancy building; and

•

the landlord is in possession of a compliance document (document A) that includes a certification or other statement to the effect that the premises or tenancy building, with the insulation installed, complied with those requirements.

In determining whether the insulation is qualifying underfloor insulation, points 1 and 2 above do not apply.

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Ventilation

•

Extractor fans for kitchens and bathrooms. Each kitchen and bathroom in the premises must have an extractor fan installed in it.

when the room was built or converted into a kitchen or bathroom, not having an extractor fan was lawful; and

•

if not having an extractor fan was lawful only because the room met alternative ventilation requirements, at the commencement of the tenancy the room still meets those requirements.

For a kitchen; •

the fan and all exhaust ducting must have a diameter of at least 150mm; or

•

the fan and all exhaust ducting must have an exhaust capacity of at least 50ℓ/s.

For a bathroom; •

the fan and all exhaust ducting must have a diameter of at least 120mm; or

•

the fan and all exhaust ducting must have an exhaust capacity of at least 25ℓ/s.

Exemption from extractor fan standards if not reasonably practicable to install - a kitchen or bathroom need not comply with regulation 23 if all of the following apply: •

at the commencement of the tenancy

•

the room does not have an extractor fan;

•

it is not reasonably practicable to install an extractor fan so as to comply with the regulation 23;

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This exemption ceases to apply if, during the term of the tenancy, it becomes reasonably practicable to install an extractor fan so as to comply with regulation 23.


Moisture and drainage All tenancy buildings must have efficient drainage systems. The tenancy building must have a drainage system that efficiently drains storm water, surface water, and ground water to an appropriate outfall. The drainage system must include appropriate gutters, downpipes, and drains for the removal of water from the roof. Suspended floors to have ground moisture barrier this regulation applies if; •

the tenancy building has a suspended floor; and

•

the subfloor space is enclosed.

The tenancy building’s subfloor space must have a ground moisture barrier that; •

is made of a material that meets the specifications for an on-ground vapour barrier set out in section 8 of NZS 4246:2016; and

•

was installed in accordance with section 8 of NZS 4246:2016; or

•

has an alternative ground moisture barrier that ›

has a vapour flow resistance of at least 50 MN s/g; and

›

was installed by an appropriate professional installer.

A subfloor space is enclosed if the airflow in and out of the space is significantly obstructed along at least 50% of the perimeter of the subfloor space by one or more of the following: •

a masonry foundation wall:

•

cement boards, timber skirting, or other cladding:

•

other parts of the building or any adjoining structure:

•

any other permanent or semi-permanent structure that significantly obstructs airflow:

•

rock, soil, or other similar material.

A tenancy building need not comply with regulation 28 if, at the commencement of the tenancy; •

the building does not comply with that regulation; and

•

it is not reasonably practicable to install a ground moisture barrier so as to comply with that regulation.

This exemption ceases to apply if, during the term of the tenancy, it becomes reasonably practicable to install a ground moisture barrier so as to comply with regulation 28.

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Draught-stopping Open fireplaces to be blocked. If the premises has an open fireplace, it must be closed off or its chimney must be blocked in a way that prevents draughts in and out of the premises through the fireplace. However, this does not apply if; •

the tenant requests in writing that the fireplace be available for use; and

•

the landlord agrees to the request.

If subclause (1) is disapplied under subclause (2), the fireplace and its chimney must be; •

•

free from gaps or holes that allow draughts in or out of the premises and that are not necessary for the safe and efficient operation of the fireplace; and maintained in good working order.

Gaps and holes that allow draughts - the premises must be free from gaps between, and holes in, building elements that; •

are not intentional parts of the construction of the premises (such as drainage and ventilation openings); and

•

allow draughts in or out of the premises; and

•

are unreasonable.

14

In determining whether a gap or hole is unreasonable for the purposes of subclause (1)(c), the following matters may be taken into account: •

the size and location of the gap or hole:

•

the extent of the draught that is allowed through the gap or hole:

•

if there is more than one gap or hole at the premises, the extent of the total draught that is allowed through those gaps and holes:

•

the likely impact that a draught through the gap or hole will have on heat loss from the premises;

•

any other relevant matters, subject to subclause (3).

In determining whether a gap or hole is unreasonable, the age and condition of the premises or tenancy building must not be taken into account.


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Asbestos Regulations

Residential landlords are PCBU’s (persons conducting a business or undertaking), under the Health and Safety at Work Act. They must manage any asbestos-related risks when work is taking place at their property. This is to ensure the health and safety of tenants, neighbours, contractors and anyone else who may be affected. Property Brokers anticipate an increase in compliance and regulations in this area. It is also an area that we want to ensure tenants within properties are safe and are made aware of any potential asbestos within the building.

•

If a landlord plans to do work such as refurbishment or demolition, they need to ensure that asbestos relating to the work’s location is identified and removed, where reasonably practicable. This must happen before any work starts.

Asbestos was a common building material up until the 1980’s, but it may be present in buildings built or renovated before 2000.

•

When work at a property includes a risk of exposure to respirable asbestos, the relevant asbestos must be identified and an asbestos management plan prepared. A landlord may write the asbestos management plan themselves, or they may employ someone else to do it. If the asbestos is non-friable and in good condition it’s often safer to leave it undisturbed if the work taking place is routine maintenance or other minor work.

•

The landlord needs to work with the other PCBU’s involved, (such as building contractors), to ensure the plan is followed. They also need to inform their tenants about the asbestos and what they need to do to keep safe while the work takes place.

Overview of requirements: •

If you're a landlord you must comply with the Health and Safety at Work Act 2015 and the Health and Safety at Work (Asbestos) Regulations 2016.

•

As a landlord, you may not have to remove asbestos from your property but you will need to manage any related risks. For example, if contractors are carrying out repairs, this could disturb material that contains asbestos.

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Asbestos Management plan

The primary legislation governing work health and safety in New Zealand is the Health and Safety at Work Act 2015 (HSWA). Policy clarifications set out WorkSafe’s view of HSWA in relation to a sector, particular circumstances, or a specific function. This policy clarification sets out when residential landlords have a duty to identify asbestos and prepare an asbestos management plan. What does the law say? •

Under HSWA, landlords must ensure that when work is carried out at their property, it is done safely and without endangering workers or others, including tenants.

•

Landlords must identify asbestos in the workplace and document plans for managing its risks in an asbestos management plan if there is a risk of exposure to respirable asbestos fibres.

Asbestos Management Plan 1. As a residential landlord, property manager or building contractor, you are the person conducting a business or undertaking (PCBU) for your rental property.

4. The risk of exposure depends on the kind of work you’re planning to do. Types of work that create risk may include renovations, refurbishments or demolition work. 5. If the work creates a risk of exposure in an area of the property, you must ensure asbestos is identified and an asbestos management plan is prepared. 6. The duty only applies: •

when you are planning and carrying out the work

•

to the area relevant to the work creating a risk of exposure to respirable asbestos fibres.

Positively identifying a Management Survey

2. Coordinate, collaborate and cooperate when they share overlapping duties with you.

The asbestos surveyor should take a sufficient number of samples to confirm the location and extent of any asbestos-containing material (ACM). Sample numbers can be reduced if materials are assumed to contain asbestos.

3. Under HSWA, you have a duty to identify asbestos and prepare an asbestos management plan for work involving a risk of exposure to respirable asbestos fibres. For example, exposure is likely to occur from dust created when drilling or cutting into asbestoscontaining materials.

When sampling is carried out as part of a management survey, a competent person should collect samples from each type of suspected ACM for analysis. If the sampled material contains asbestos, other similar materials used in the same way in the building can be assumed to contain asbestos.

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Work involving asbestos

Asbestos-related work

• Research and analysis • Sampling and identification • Transport and disposal • Demonstrations, education or practical training • Response to an emergency • Demolition • Firefighting

Unlicensed asbestos removal

• Removing 10m2 or less of non-friable asbestos and associated asbestoscontaminated dust (ACD) • Removing ACD not associated with the removal of friable or nonfriable asbestos and is only a minor contaminant

• Maintenance and servicing work • Display of an artifact or thing • Mining • Laundering asbestoscontaminated clothing

Asbestos removal work

Licensed asbestos removal

Class A

Class B

• Any amount of friable asbestos or ACM

• Any amount of non-friable asbestos or ACM

• Any amount of ACD

• ACD associated with removing non-friable asbestos or ACM

• Any amount of non-friable asbestos or ACM

• Naturally occurring asbestos • Work carried out in accordance with an approved method

Management survey The purpose of the asbestos management survey is to help the workplace PCBU to identify and manage all asbestos in their workplace systematically. The survey has to provide sufficient information for the workplace PCBU to indicate the presence and location of asbestos or ACM, carry out a suitable risk assessment, and develop an asbestos management plan. In most cases, the survey will have three aims. •

Find and record the location, extent and product type of any assumed or known asbestos and ACM.

•

Inspect and record information on the accessibility, condition, and surface treatment of any assumed or known asbestos and ACM.

•

Determine and record the asbestos type, either by collecting representative samples of suspect materials for laboratory identification or by making an assumption based on the product type and its appearance, etc.

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Asbestos Best practice

The management of asbestos is new for everyone, so what does good practice look like? The following scenarios outline the actions you must take or ensure happen, so you meet your duty under HSWA. They also illustrate that responsibilities are specific to the part of the property where there is a risk of exposure to respirable asbestos fibres. Scenario one – demolition of a shed: A landlord is planning to demolish a shed located at the rear of a rental property. The shed is of an age and type that is likely to contain asbestos, such as a structure built, altered or refurbished before January 2000, with building elements that may contain asbestos. Until now, rather than identifying all asbestos, the landlord assumed it to be present and advised the tenants on how to stay safe. Before the demolition, the landlord must ensure all the asbestos from the shed is identified and removed. An asbestos management plan needs to be prepared during the planning process before the demolition. A licensed asbestos removalist can develop the plan for the landlord, as they are likely to have already the information needed for their own asbestos removal plan. The landlord and the removalist will need to work together to ensure the removal is carried out safely and in accordance with the regulations. In this scenario, the house does not need to be included in the asbestos management plan because the work does not involve the house.

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Scenario two – renovating a kitchen and bathroom: A landlord is planning to refurbish the kitchen and bathroom of a rental property. The property is of an age and type that is likely to contain asbestos. Rather than identifying all asbestos, the landlord assumed it to be present and advised the tenants how to stay safe. Before the refurbishment begins, the landlord must ensure all the asbestos from the kitchen and bathroom is identified and removed where possible. The landlord must ensure the asbestos management plan is prepared during the planning stage and work with a licensed removalist to ensure the removal is carried out safely and in accordance with the regulations. In this scenario, there is no requirement to identify all asbestos and prepare an asbestos management plan for the areas of the house not being renovated because there is no risk of exposure there.


Asbestos Policy

Property Brokers are constantly working to update our policy on asbestos and this is determined on whether it becomes mandatory for every property to be assessed. In the meantime, the policy for asbestos is as follows; 1. If a property is new or existing and if asbestos is suspected within a property, an approved asbestos assessor must be engaged to check the property. 2. If a property is new, and asbestos is suspected, the property cannot be rented until it has been assessed, and either a management plan or removal plan has been completed. 3. Notify the owner of the concern and pending assessment. 4. Based on the findings; •

A management plan will be established.

•

All asbestos will be identified.

5. If identified, depending on the threat, the asbestos management plan is to leave the asbestos within the property, then it must be identified: •

Asbestos to be recorded internally.

•

Asbestos to be recorded as a hazard in the Maintenance Management software.

•

Work orders for tradesman need to identify risks within the property.

6. If work is to be carried out where asbestos has been identified, a management or removal plan needs to be established in consultation with an approved asbestos management company.

Asbestos is a potentially hazardous material. It is essential that if you have any concerns about a property under management, you raise it immediately with your property manager.

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Methamphetamine Regulations

We are well versed on our obligations with methamphetamine (meth) and how to handle any issues around it, as and when they arise. The Residential Tenancies (Managing Methamphetamine Contamination) Regulations 2026 came into force on 16 April 2026. These regulations sit under the Residential Tenancies Act 1986 and, for the first time, give landlords and property managers clear, legally defined thresholds and processes. They replace the previous grey area, where the Gluckman Report’s findings had not been formally adopted into law.

Property Brokers’ position on testing Property Brokers does not have a policy requiring compulsory meth testing. Our role is to provide owners with the information they need to make an informed decision. Whether to carry out testing, for example, on a property new to the portfolio or one that has been in the rental pool for many years, is the owner’s decision, based on their own appetite for risk. This is seperate from the legal obligations that apply once contamination is suspected or identified (set out below). Those duties are not optional and apply regardless of an owner’s testing preference. Contamination thresholds The regulations set two levels, both measured in micrograms per hundred square centimetres (µg/100cm²): •

Maximum acceptable level – 15µg/100cm². A property is contaminated if any part of it tests above this. Contamination is assessed room-by-room, so only the affected areas need to be decontaminated - not the whole property.

•

Maximum inhabitable level – 30µg/100cm². If any part of the property tests above this, the property is uninhabitable.

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When a property is uninhabitable (above 30µg/100cm²) Under the RTA, either party may end the tenancy, unless the contamination is confined to a “remote and inconsequential” part of the property: •

A landlord who is not at fault can give 7 days’ notice.

•

A tenant who is not at fault can give 2 days’ notice.

A part is “remote and inconsequential” only if it is physically seperate (or can be closed off to stop the spread) and the rest of the home can reasonably still be lived in. In that case, the tenancy cannot be ended immediately, rent must instead be reduced, and either party can apply to the Tenancy Tribunal for termination.


Methamphetamine Testing •

Screening assessments can be carried out by anyone (tenant, landlord or professional) at any time, provided an approved testing method is used correctly. These detect whether meth residue is present and whether detailed testing is needed.

•

Detailed testing can only be carried out by a qualified professional. That professional must not be the same person who did the screening, nor the person who will carry out any decontamination.

Arranging testing

Decontamination

A landlord must arrange detailed testing if either:

Any area above 15µg/100cm² must be decontaminated to 15µg/100cm² or lower. Landlords can manage this themselves or engage a professional.

•

Police or the Council notifies them that meth was likely manufactured at the property, or

•

a valid screening assessment shows the property is contaminated (an area above 15µg/100cm²) and the landlord is made aware of the result.

•

Decontamination must follow the process prescribed in the 2026 Regulations, based on Section 4 of NZS 8510:2017 (as modified). Note the regulations include some exceptions to the Standard, so confirm the correct process with a professional.

Approved methods

•

Individual sampling, laboratory composite testing, and validated screening test kits (in line with NZS 8510:2017 as modified by the regulations). Field composite tests and unvalidated kits are not approved.

Light fittings and installed heaters must be cleaned as thoroughly as possible under the Standard as modified.

•

Carpets, curtains and soft furnishings that can be cleaned must be HEPA-vacuumed and steam cleaned. Those that cannot (e.g. couches, mattresses) must be removed and replaced.

•

After decontamination, a qualified professional must carry out detailed testing again to confirm levels are at or below 15µg/100cm². If not, further rounds are required.

Landlords are otherwise not required to test between tenancies, but may choose to.

Notification and penalties Where a landlord carries out screening or detailed testing, they must give tenants the correct entry notice beforehand and notify all tenants of the results within 7 days of receiving them. Failing to meet these obligations can result in exemplary damages of up to $7,200, and in some situations pecuniary penalties of up to $50,000.

Tenants are not required to move out during decontamination, but relocation and any rent reduction should be discussed and recorded in writing.

Raising concerns Meth contamination is a potentially serious health and financial issue. If you have any concerns about a property under management, raise it immediately with your Property Manager so the correct process can be followed.

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FAQ’s The property has two storeys, do we need a smoke alarm on each level? Yes. The minimum requirement is no more than three metres from each room. Should Property Brokers be responsible for checking smoke alarms between tenancies? The property manager should contract this requirement to a third party such as SATS (Smoke Alarm Testing Services). There are professional agencies that check, monitor, and install alarms for properties for a small annual fee. Who should we use to test smoke alarms? There are several professional agencies across New Zealand. SATS (Smoke Alarm Testing Services) is a trusted Will Property Brokers require each property to be tested for asbestos? At this stage, no. However, we are working to determine the feasibility of checking properties going forward. Are the Management Authorities going to be updated to include asbestos? Yes, all documentation including tenancy agreements will be updated to ensure information is captured. Should Property Brokers ask new clients about asbestos in their property? Yes, most definitely. It is important to obtain all information about the property and if the owner is aware, we need to establish a management plan for the affected areas. If we know there is asbestos in the property, do we need to get a licensed contractor to remove the contaminated material? If there is less than 10m2 of non-friable asbestos material, then it can be removed by an unlicensed contractor. Depending on the amount, and type of asbestos, a management plan will be put in place. Is meth testing compulsory for properties? No. Property Brokers does not require compulsory testing - it is the owner’s decision based on their appetite for risk. However, if Police or the Council advise that meth was likely manufactured on the property, or a valid screening test shows contamination, the landlord is legally required to arrange detailed testing. What levels apply to meth contamination? Under the 2026 Regulations, a property is contaminated above 15µg/100cm² (the maximum acceptable level) and uninhabitable above 30µg/100cm². The old 1.5µg/100cm² clean-up trigger no longer applies. An owner has recently insulated to the Insulation Regulation, are they ok? Not necessarily, if the ceiling insulation is less than 120mm, they will need to top it up. Does underfloor insulation need to be 120mm or more? No, only the ceiling insulation requires 120mm or more.

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Resources Smoke Alarms: Requirements - tenancy.govt.nz/assets/Uploads/Tenancy/smoke-alarm-requirements.pdf Best Practice - Smoke alarm best practice recommendations from Fire and Emergency New Zealand Insulation: Regulations - tenancy.govt.nz/healthy-homes/insulation-standard/ Legislation - tenancy.govt.nz/assets/Uploads/Tenancy/NZS-42462016-Energy-efficiency-Installing-bulkthermal-insulation-in-residential-buildings.pdf Healthy Homes Standards: Regulation - legislation.govt.nz/regulation/public/2019/0088/latest/whole.html Landlord information - tenancy.govt.nz/healthy-homes/ Asbestos: Regulations - https://legislation.govt.nz/secondary-legislation/pco-drafted/2016/15/en/ latest/#DLM6729706 Health & Safety - legislation.govt.nz/act/public/2015/0070/latest/DLM5976660.html Identifying Asbestos - https://www.worksafe.govt.nz/topic-and-industry/asbestos/ Management and Removal - https://www.worksafe.govt.nz/topic-and-industry/asbestos/ Methamphetamine: Law - police.govt.nz/advice/drugs-and-alcohol/methamphetamine-and-law Standards - https://www.standards.govt.nz/shop/NZS-85102017 Gluckman Report - https://www.dpmc.govt.nz/sites/default/files/2021-10/pmcsa-Methamphetaminecontamination-in-residential-properties.pdf

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For all your property management needs, please call 0800 367 5263 or email rentals@pb.co.nz

Disclaimer. While all care has been taken in preparing this publication, Property Brokers Ltd, its sales consultants and staff accept no responsibility for the accuracy of the information at any time. The information contained has been prepared by PBL for informational purposes only and should not be a substitute for legal, or other professional, advice; you are advised to seek specific advice relevant to your circumstances from a suitably qualified professional. PBL does not accept any responsibility or liability for any action taken as a result of relying directly or indirectly on the information in this document. How you use the information is your sole responsibility. If you have concerns about the information in this publication, contact PBL directly.

Q032972 AUG26

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