It’s an inescapable fact that Kiwis have long approached heating with a somewhat delusional view of the requirements. New Zealand does not have a sub-tropical climate. In reality, it can get very cold: around a third of households’ energy bills goes towards keeping their home warm in winter. And yet the country’s housing stock doesn’t reflect that.

Until recently, along with a lack of insulation, inadequate ventilation and limited use of features such as doubleglazing, the provision of heating sources in houses has been random and often inadequate. The Housing Improvement Regulations 1947 has heating requirements for rental properties, but they seem to have been little known and randomly adhered to.

That’s why heating is one of the Government’s new Healthy Homes minimum standards for rental properties which became law on July 1. So, in this, the final instalment of our three part series, we take a look at the new heating requirements for landlords.

Standard Requirements

Under the new standard for heating, landlords must provide one or more fixed heaters that can directly heat the main living room to a maintained temperature of at least 18 degrees Celsius, the temperature recommended by the World Health Organization. The standard specifies the main living room because it is usually the largest room in a home and tends to be used for general, everyday living. So think a lounge, family room or dining room. It also specifies that the heater must be fixed, as opposed to portable, and at least 1.5kW in heating capacity. While the feeling is that heat pumps are the preferred option, a range of heating options are acceptable. According to Tenancy Services, that means the right type of heaters are larger fixed heating devices like heat pumps, modern wood or wood pellet burners, or flued gas heaters. In some situations, such as small apartments, a smaller fixed electric heater will be considered enough.

There are further requirements of the heating devices installed. For example, if the heating device is a heat pump or an electric heater, it must have a thermostat.

Also, central heating will meet the standard as long as it provides heat directly to the living room through vents or radiators and is at the required kilowatt to heat the living room to 18°C. It should come as no surprise that, under the standard, there are prohibited heating devices. Open fires, which are draughty and inefficient, and un-flued combustion heaters, such as portable LPG bottle heaters, which release toxic fumes and moisture, are not allowed.

Additionally, it is not possible to use an electric heater (except a heat pump) if the required heating capacity for the main living room is over 2.4 kW - unless you’re “topping up” existing qualifying heating that was installed before July 1, 2019.

Where a property does have an existing open fireplace, landlords will need to close it up or block the chimney – unless the tenant asks in writing for it to remain usable and the landlord agrees.

Getting In Right

Choosing the right sort of fixed heating device for a rental property might seem straightforward. But it turns out it is not. That’s because it is necessary to match the size and capacity of the heater to the space it is required to heat.

A number of steps need to be worked through to do this correctly under the standard. First up, the minimum heating capacity required for the heaters in a rental property needs to be calculated. Tenancy Services has an online heating assessment tool to help do this. It generates a report that sets out what is required for the property, taking into account the individual features of that property such as location, build date, insulation levels and layout.

Alternatively, heating requirements can be worked out by using the calculation method outlined in schedule two of the new standard’s regulations. But if a property owner is unsure of what figures to include or a property has a complex room layout, asking a professional for advice is recommended. This information can then be used to check if any existing heating devices meet the standard or whether additional heating is required. It can also help to prove a rental property meets the heating requirements in the Healthy Homes standards.

If a new heating device needs to be added to a room to “top up” the existing heating, each heater must meet the requirements in the new standard. There is one exception to this: if the existing heating was installed before July 1, 2019, the required heating capacity is over 2.4kW, and the “top up” is 1.5kW or less, it is possible to add a smaller fixed electric heater into the mix.

Tenancy Services also advises that landlords don’t need to add more heating if they have one or more existing large heaters that meet certain requirements.

Though they can’t be an open fire or an un-flued combustion heater and they must have been installed before July 1, 2019. They also must have a heating capacity greater than 2.4kW, which is 90% of what is needed, and they can’t be electric heaters if the required capacity is over 2.4kW.

However, in such cases, when the existing large heater(s) needs replacing, a correctly sized heater will need to be installed.

For landlords to get the most out of their heating dollar, they need to think about the amount of heat required for the main living area as well as the cost to purchase, install and run the necessary heating device. Landlords are also responsible for maintaining the heating devices in their properties and this should be factored into their considerations.

Pump It Up

It is these considerations which tend to leave heat pumps as the front running option for many property owners. Temperzone’s Jamie Nankivell says the bottom line is that heat pumps are cost-effective, with low running costs over their 12 to 15 year life span, and they are efficient at turning energy to heat.

“There’s a payback that comes with a heat pump. People think they are expensive to install but for every one unit of electrical input they provide between 1.5 to three units of heat output over the heating season. That’s compared to a one to one unit output from other heat sources. So you will save money in the long run.”

Heat pumps can be costly to install but so too are other installed heating devices, like log burners, and, unlike other installed heating devices, they don’t require council consent, he says. “While costs vary depending on the number of pumps being installed, the size of the pump or pumps, and the complexity of the installation, growth in the market means heat pumps on average have become more affordable.”

Nankivell says it is now possible to get some good prices for heat pumps and their installation (which must be done professionally). For a single good quality heat pump, and its installation, prices start at around $1,800. Larger, single-split system heat pumps, with installation, have prices from $3,200 up.

Prices then increase depending on the heat pump brand, the features chosen and the complexity of the installation. If installing a multi-split or ducted heat pump system there are numerous variables to consider and that means prices need to be supplied by a qualified installer after assessing a property. For landlords who are looking for a heat pump at the basic end of the scale, there are a number of important considerations besides price, Nankivell says. “These include the warranty period and conditions (ie: does it cover labour costs), if it has a comparatively reasonable heating energy star rating and whether it is a reputable brand with good service support.”

When it comes to the running costs of heat pumps, it can be complicated to calculate them as they tend to vary widely depending on frequency of use along with the size and efficiency of the heat pump, he adds. “But they are one of the most efficient forms of heating and the costs can be managed. It’s worth checking out the Energywise running costs calculator for help with that.”

Switching On

There has been some debate about the value of the heating devices specified by the standard. That’s because investor advocates say installation costs are likely to be passed on to tenants in the form of higher rents. And there’s also a view that tenants who struggle with power costs simply won’t use the heating devices provided anyway.

But landlords need to remember that warm, dry rental properties with energyefficient heating are now required by law. It’s worth noting that, these days, they are also attractive to many tenants which makes them easier to market and likely to attract a higher rent.