Compulsory insulation in rental properties has been accepted by many landlords but others have decided to sell because "it was too hard" or costs too much, real estate agents say.

Ceiling and underfloor insulation is compulsory in all rental properties from today under the Residential Tenancies Amendment Act 2016.

The looming law left tradies rushed off their feet to complete last-minute installations before today, with one Bay of Plenty company saying it was booked up a month in advance.

Landlords have had three years to have the work carried out and could face a fine of up to $4000 if

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