Sarina Gibbon from Tenancy Advisory. She specialises in working with landlords and tenants. Photo / Sarina Gibbon
Landlords can be fined a maximum $7200 for breaching Healthy Homes standards from July 1, an amount questioned by one sector adviser.
Sarina Gibbon, founder of Tenancy Advisory, which works with landlords and tenants, said the penalty was too low.
“It is not much at all when you weigh up the interests between the tenant and the landlord,” she said.
Nor did people realise that rather than creating healthy homes, the new standards from July 1 were a bare minimum.
“I get asked a lot about if I think the standards are fit for purpose. Their purpose is not to deliver healthy homes. Their purpose is to set minimum standards of habitability for rental properties,” Gibbon said.
Healthy Homes is a term which sounds better than minimum standard, she said.
“But if the sector was serious about ensuring homes were healthy, we need practical incentives to support healthy living behaviours,“ she said.
She cited the example of the standard requiring a fixed form of heating in the lounge, often a heat pump.
“But there is no point putting in a heat pump if the tenant isn’t going to turn it on. So we’ve got to decide if we are serious about making rented homes healthy or are we just ticking boxes?”
Tama Potaka, Associate Housing Minister, said the tribunal could award higher amounts than $7200.
“It can award compensation or order work to be done up to a value of $100,000,” Potaka said.
It could order the payment of exemplary damages up to $7200 where a landlord fails to meet obligations in respect of cleanliness, maintenance, smoke alarms, the healthy homes standards, or buildings, health, and safety requirements, Potaka said.
But the tribunal could also require works to repair a property or undertake maintenance to bring a property up to standard within specific timeframes.
From July 1, about 600,000 New Zealand rental properties must meet five standards, according to Tenancy Services, part of the Ministry of Business, Innovation and Employment:
The Healthy Homes checklist explains the law so people know how rented homes must comply.
The Tenancy Tribunal rules in cases where homes don’t comply.
Tribunal case one: $3600 to tenant
In May, the tribunal ruled against Hendo Holdings trading as Quinovic Property Management Takapuna as the agent for landlord Hai Huang.
Healthy Homes standards had been breached so Quinovic had to pay the tenant in a North Shore home $3500 exemplary damages.
The tenant said that the landlord had misled them in relation to compliance, failed to provide the necessary Healthy Homes information, failed to maintain the premises in a reasonable state of repair and that the premises was not reasonably clean at the beginning of the tenancy.
Gibbon said it was significant that the adjudicator only awarded half what could have been awarded.
She called for heavier fines which she said would send a message to the sector.
Tribunal case two: $3600 to tenants
In a second case, the tribunal awarded $3600 to Wellington tenants Kirsty and Rahul Bhoven for a breach of Healthy Homes standards.
Landlord Fiona Maira Johnston and her partner, Mr Pavlovic, rented a Hataitai home to the tenants. Johnston complained about the tenants not cleaning the carpets when they left.
But the tenants complained about Healthy Home standards breaches including no kitchen or bathroom extractor fans.
Several windows did not open or close properly and gaps let in draughts, the tenants complained.
Adjudicator J. Stirling awarded the tenants $2400 for the standard breaches and a further $1200 for the window problems.
Gibbon said a number of property managers had told her of their concerns about places not complying and their roles.
“Several are already dumping non-compliant properties. Property managers are often in the middle: they encourage but don’t force their landlords to comply,” Gibbon said.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.