He used the fire extinguisher from his work truck to control the blaze until firefighters arrived.
"[Flames] were coming out the side window about 2m into the air. The iron on the shed had melted and the flames were shooting out of there like a jet engine," he said.
Tauranga fire safety officer Ken McKeagg said the neighbours saved the day.
"One of the neighbours spotted it and another neighbour drove down there and put the majority of it out with an extinguisher and put the rest out with a garden hose."
"If they had waited until we got there it [the house] would have been on the ground because it was way out in the country."
By the time three firefighting appliances from Greerton arrived the fire was pretty much under control.
The firefighters stayed another three and a half hours dampening down hotspots.
The couple who live in the home were shopping in Tauranga city and came home to find fire engines in the driveway and a burnt out toilet.
Mr McKeagg said the fire had started in the toilet area but he was unsure what had caused it.
The fire was contained to about 2 square metres and damage was fairly minimal, he said.
A small amount of framing was burnt, some of the cladding was scorched and there was minor smoke and water damage.
Property owner Bryce Matuschka said the quick response of the neighbour with the fire extinguisher had probably saved the building. His tenants were uninsured and would have lost everything, he said.
He also thanked the neighbours who had raised the alarm and the firefighters who finished the job.
