Landlords, sharpen your pencils – the final bell for Healthy Homes compliance rings on July 1, and there’ s no extra time on the clock.
Zac Snelling, Ray White Group Head of Property Management, says it’ s the moment of truth for New Zealand’ s residential investment sector, as regulatory, economic, and social tides converge to reshape the playing field.
“ Compliance is no longer a moving target. Rental inflation has eased, tenants have choice, and the idea of the‘ reluctant landlord’ is rapidly losing favour in an environment demanding professional-level service, standards, and strategy.
“ The reality is, good landlords will come through stronger,” Snelling says.“ Those cutting corners? They’ ve either exited already, or they’ re next.”
THE END OF GRACE
Until now, landlords of new tenancies had a 120-day grace period to meet Healthy Homes Standard requirements, but as of July 1, that disappears, Snelling says.
From that date, every rental home in New Zealand must be compliant or risk censure.
Snelling suggests that only a small percentage of the country’ s landlords remain non-compliant, many of whom fall into what he calls the‘ bare minimum’ category – those unwilling to invest in the standard of their assets, often in lower rent brackets.
“ These landlords are the exception, not the rule. Fortunately, the majority of investors are ethical, valuedriven, and understand that high-quality housing leads to better tenant experiences and improved financial returns,” he says.
While some recent media attention has focused on the few rather than the many, Snelling pushes back on the narrative.
“ Negative assumptions about residential investment can be misguided. The reality is that private landlords provide a warm, dry, safe home to nearly 500,000 New Zealanders. That’ s an essential service.”
IT’ S NOT SET AND FORGET
A key area of confusion surrounds the validity of Healthy Homes certification, with some landlords questioning whether their earlier compliance remains valid today.
“ Compliance isn’ t something you can tick off once and forget about,” says Snelling.“ You need to show your property complies at the start of a tenancy and that compliance remains in place at all times. It’ s a living obligation, not a one-off achievement.”
Snelling expresses concern particularly for privately managed landlords who may not be aware of the nuanced technicalities within the regulations.
“ These are not bad actors, they’ re just struggling with the complexity. That’ s where professional property managers make a difference, helping to ensure no one is caught out by a technical oversight.”
Snelling says regulators are expected to ramp up compliance enforcement, with government-backed campaigns likely to encourage tenants to report noncompliant homes. However, fears of retribution have the potential to temper this.
RENTAL RULES IN A NUTSHELL What landlords need to know now
July 1 Final Healthy Homes compliance deadline- no more 120 day grace period
Ongoing compliance You must prove compliance at the start“ and” end of each tenancy
Market shift Rental inflation is at a 15-year low with more listings and stable rents
Good landlords win High-quality homes mean better tenants and stronger returns
Stricter enforcement Expect more checks and campaigns encouraging tenant reporting
Budget 2025 outlook House prices + 5.5 %( 2026), GDP + 2.9 %, OCR to 2.5 % by Oct 2025
What’ s next Pet tenancy rights and regulation of property managers are coming
Key takeway Adapt, invest, stay informed- the age of passive landords is over
RAY WHITE NOW NEW ZEALAND | 27