Landlords have a little over a year to insulate their properties as the Healthy Homes Guarantee Act comes into force — and sharks are circling.
Some insulation providers have been said to jack their prices up by the amount of government subsidy and then essentially offer non-existent discounts to cream the grant off for themselves. Or there is no subsidy available so the homeowner is effectively paying their own subsidy.
"It used to be a good deal, but then the prices doubled, so when the government subsidy was applied, it made no difference at all," says Andrew King, executive officer of the New Zealand Property Investors' Federation.
When the Herald contacted property investor associations across the country, examples of price gouging and alleged fake subsidies emerged.
Capital Property Investors Association secretary Dean Jackson says members of his association have noted that installers approved for insulation subsidies will typically charge around 30 per cent more than other companies which aren't approved, and then take this same amount off as "discount".
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What landlords need to do
• Insulation statements are compulsory with all new tenancy agreements.
• Insulation for ceiling and floors will be compulsory for all rental homes from 1 July 2019.
• Installations must comply with regulations and be safely installed.
• A landlord who fails to comply with the regulations is breaking the law and may be liable for a penalty of up to $4000.
• Tenants who have a problem with insulation must first talk with their landlord.
• The Tenancy Tribunal can order landlords to comply with insulation regulations.
• Some landlords may be eligible for subsidised insulation through the Warm Up New Zealand: Healthy Homes programme.