Until the government changes the standard, contamination over the current 1.5mg/100cm2 limit will trigger a landlord insurance claim.
It is concerning that the Real Estate Agents Authority moved so quickly to only declaring limits over 15mg/100cm2. Continue to do your due diligence when purchasing property as contaminated homes (over 1.5mg/100cm) are untenantable and uninsurable.
Status quo remains at Tenancy Tribunal post-Gluckman report
The Tenancy Tribunal has published its first orders on methamphetamine since the Gluckman report sent shockwaves through New Zealand last month.
The orders have been eagerly anticipated after the Prime Minister’s former Chief Science Advisor published a report last month saying that there was no evidence third-hand exposure to methamphetamine caused adverse health effects.
As a result, Housing New Zealand and the Real Estate Agents Authority quickly established new contamination levels of 15 micrograms/100cm2 for their businesses.
But it appears the status quo will remain at the Tenancy Tribunal until the Government establishes new ‘official’ standards in this contentious area.
All six orders published since the Gluckman report was released on May 29 follow Standards New Zealand’s NZS 8510:2017, which has a contamination level of 1.5mg/100cm2.
Only one Tenancy Tribunal order, application number 4128761, referenced the Gluckman report.
“There is currently some debate about the health impact of methamphetamine however I agree that the use of premises for an unlawful purpose is something to be discouraged,” the adjudicator wrote.
So it appears it’s business as usual for landlords and property managers until any legislative changes are made in this space.
For more information, read the full tenancy.co.nz article here.
There needs to be an inspection done every three months and in between tenancies to meet our landlord obligations under our landlord insurance policy. This can be done yourself or by the person who manages your tenancy (e.g. property manager). The inspection will need to confirm the interior and exterior condition of the property and you need to keep a record of the results.
These landlord obligations and inspections only need to be met if you are making a tenancy-related claim. These include tenant damage, meth contamination and loss of rent after a tenant is evicted or leaves.
If you don’t fully complete your inspections it won’t void your policy. The cover for non-tenancy claims like floods and sudden water damage are still covered.
Full Landlord Obligations
Can I complete inspections remotely?
At initio, we require an agent or a trusted representative physically present at the property for inspections. This ensures a thorough evaluation of the property’s condition and facilitates real-time reporting, serving as your on-the-ground resource. Advantages of having an in-person representative include:
- Real-time condition verification and data reporting during the inspection process.
- Being your dedicated eyes and ears on the ground, diligently checking the property’s condition.
- Early identification of any potential issues, damages, or repairs that could potentially be missed in a purely remote inspection.
However, we understand there may be special circumstances such as illness or lockdowns where remote inspections become necessary. These should be exceptions rather than the norm. In such cases, a trusted representative or official agent’s physical presence during the inspection is critical to maintain the assessment’s accuracy and comprehensiveness.
Looking ahead, we’re mindful of emerging technologies that could potentially streamline remote inspections. However, as of now, the value of in-person inspections is paramount. Always remember that our advice serves as a guideline, not an inflexible rule. Each property and situation may require a different approach, and decisions should be tailored to your specific circumstances and needs.
What happens if I can’t inspect my property every three months due to illness?
Initio’s landlord guidance is that you, or someone on your behalf, should carry out an internal and external inspection at least every three months, and also between tenancies. These inspections are an important part of meeting landlord obligations for tenancy-related claims, such as tenant damage, meth contamination, or loss of rent after eviction.
That said, if inspections aren’t completed exactly on time, your policy is not automatically void. Claims that aren’t tenancy-related (like fire, flood, or sudden water damage) remain covered.
For tenancy-related claims, inspections generally need to be done in person by you, a property manager, or another trusted representative. We do recognise that there may be special circumstances, like illness, where remote inspections are the only option. These should be the exception rather than the norm, and having someone physically present is always preferred to keep records accurate.
If you’re in a situation where inspections are difficult, please reach out to our team. We’ll be happy to talk through your options and help make sure you’re covered.
Further information
Please refer to the New Zealand tenancy services site for specific information around property inspections, including;
- your rights
- your tenant’s rights
- a sample inspection form
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Want to pay monthly but prefer not to use a Credit Card? Our card option also works with Visa Debit Cards
Most standard accounts with New Zealand banks offer the option to link a Visa debit card to an ordinary bank account. Debit cards work like credit cards but use the money in your connected bank account, avoiding interest fees. They can be used for:
- Contactless payments in-store
- Online shopping
- Overseas purchases and ATM withdrawals
You can control your debit card options, such as enabling or disabling contactless payments. Debit cards are useful for paying policy premiums with Initio, either monthly or annually. Each bank has its own criteria, fees, and application processes.
Contact your bank for further information on how to set up a Visa debit card should you wish to use this option.
This information provides general guidance. For the latest details on fees and conditions, please check each bank’s website.
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Switching payment frequency
Can I pay with direct debit?