We discuss the viability of being a landlord now that the Healthy Homes Standards have been implemented. Is it worth it, or should you sell up and get out now? Come find out.
It would be a fair comment that many are considering the viability of being a landlord since the introduction of the Healthy Homes Standards. Even the media is reporting landlords are selling up because of compliance costs.
The introduction of the Healthy Homes Standards has required many landlords to invest further capital into their properties. New requirements have meant that rentals need a fixed heater, underfloor and ceiling insulation, bathroom and kitchen ventilation, adequate drainage and all draughts stopped. All of these come with a cost, and for many landlords, the cost was too high.
However, many landlords remain and are not considering selling their rentals. We take a look at both sides of the issue today.
Healthy Homes Standards & the Viability of Being a Landlord
Owning rental properties can give you a steady stream of income, plus a lump sum of equity should you decide to sell a property. For many landlords, it was their retirement or savings fund. They expected to pay maintenance and renovation costs over the course of their ownership. What wasn’t on their radar was ‘prescribed’ costs from the Government.
Landlords are required by law to meet all of the requirements of the Healthy Homes Standards. For many landlords, this has resulted in significant financial investments. While rents can be raised to mitigate this, many are still out of pocket and this questions the financial viability of being a landlord.
However, what landlords end up with is a warm, dry and appealing rental property. Tenants are more likely to want to remain longterm, avoiding the frequent costs of looking for new tenants. The health of the tenant in a warm home is likely to be better, meaning fewer sick days and no missed income (= no missed rent payments). A rental is less likely to remain empty for long, as it will also be appealing to new tenants.
For landlords, a dry and warm rental can mean lower maintenance costs. You are not needing to replace damaged or mouldy fixtures and fittings due to moisture damage. Should you decide to sell in the future, the property will be appealing to landlords and private buyers because the required work has been completed. Finally, not complying will end up costing you more, with fines being given for non-compliant rental properties.
For further information, we recommend reading the article What You Need to Know About the Healthy Homes Standards, which lists the five areas of compliance. You can also contact us on 09 948 3255 if you would like us to help manage your rental and ensure it complies with current and future regulations.
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