Healthy Homes Compliance
Investment Property | Reading Time: 3 Minutes | June 2020
Does having a Healthy Homes compliant property help with the sale of Investment Properties?
Having a Healthy Homes compliant property is a huge advantage when it comes to the sale of your investment property. A Healthy Homes compliant property gives peace of mind to possible investors and a warm, dry, comfortable home is likely to attract tenants.
Healthy Homes Assessment
Vendors should consider having a Healthy Homes assessment carried out before selling an investment property as having a compliant property ahead of next year’s July 1st deadline will be a huge drawcard for many potential purchasers. Independent, specialised assessors can be engaged to inspect, assess and report on your property.
What is the Healthy Homes Guarantee Act?
The Healthy Homes Guarantee Act is a policy that was brought in to increase the quality of rental homes. The primary aim of the Act is to make homes warmer and drier for New Zealand renters and to reduce the number of hospitalisations due to poor housing.
Healthy Homes Regulations
All private residential rental properties must comply with the full list of regulations for the Healthy Home Standards within 90 days of any new, or renewed, tenancy from July 1st, 2021. By July 2024 all rental homes must comply with the Standards, regardless of when the tenancy began.
From December 1st this year landlords must include a Healthy Homes Compliance Statement of their current level of compliance with the Healthy Homes Standards in any new, varied or renewed tenancy agreement. This Statement is in addition to the requirement since July 1st 2019 to include a Healthy Homes Standard Statement that confirms landlords will, or already do, comply with the Healthy Homes Standards currently in force, as required by the Residential Tenancies Act 1986.
What Are The Standards?
The Healthy Homes Standards set the minimum requirements for heating, insulation, ventilation, moisture ingress and drainage and draught-stopping. Detailed information is available from the Tenancy Services website.
Getting A Step Ahead Of The Changes
Knowing a property is already compliant or understanding what is required to get the property to the accepted level of Healthy Homes compliance will provide peace of mind for prospective purchasers. A compliant, comfortable home will be attractive to potential tenants too, as they will have a warm and dry home to enjoy. Potential purchasers who aren’t investors will also be drawn to the property knowing it will be a healthy home for themselves and their families to live in.
Pre-Contract Disclosure Statement (S146)
If you are considering the sale of your unit titled investment property it is important you have a Pre-Contract Disclosure Statement available for prospective buyers of the property in accordance with the Unit Titles Act 2010.
This document provides prospective buyers with information about the property they are looking to buy. It includes basic information about the unit and the development. It is often referred to as the ‘s146 disclosure statement’.
Additional Disclosure Statements
Owners must supply formal disclosures to buyers at three separate stages of a transaction:
- Before any sale and purchase agreement is signed (Pre-Contract Disclosure Statement – as prescribed by s146 of the Unit Titles Act 2010)
- Before the settlement date (Pre-Settlement Disclosure Statement – as prescribed by s147 of the Unit Titles Act 2010)
- If additional disclosure is specifically requested by the buyer (Additional Disclosure Statement – see s148 of the Unit Titles Act 2010)
Every owner in a Body Corporate must have a Pre-Contract Disclosure Statement in order to sell their property. The S146 costs $280 + GST, but if clients of Crockers Body Corporate choose to sell their property with our real estate team, Crockers Realty, we will provide this document free of charge.
If you are looking to sell your investment property and would like to learn more about this offer, or have any further questions on preparing your investment property for sale, contact Naomi on email@example.com .