Compliance with the Residential Tenancies (Smoke Alarms and Insulation) Regulations 2016 required Landlords declare the state of the insulation in their rental properties and now the countdown is on to make sure their properties comply with the new insulation requirements by July 2019. Government subsidies seem attractive yet recent Landlord experiences with installer quotes suggest these subsidies are often passed on only after a huge price hike so who is really benefitting from this insulation requirement? It should be the tenants and the Landlords yet it may actually be the installers so Landlords need to do their homework.
In a discussion on PropertyTalk, investors say their experience with insulation quotes suggest “the ‘subsidy’ scheme feels like it can be a bit of a scam” due to some businesses hiking up prices before the subsidies so it pays to get lots of quotes. One investor has provided Insulation Tips to help Landlords navigate the choppy waters of installers.
Tip 1. Get competitor quotes from those that offer the subsidy and those that don’t. Businesses offering the subsidy are not necessarily offering a better deal. Quotes per square metre can range from $11 to $45. Businesses don’t need to justify their costs so caveat emptor (buyer beware).
Tip 2. Ask companies to price match or do better to get your business.
Tip 3. Check the quotes and ask questions – not all installers are the same. Here is the experience of one investor on PropertyTalk:
“For the same property one company said the insulation it already had in met the regulations and nothing needed to be done, another said it needed a tidy up to be compliant and yet another said it wasn’t compliant and needed to be re-insulated.”
Another huge price variance to watch out for is the removal of the underfloor aluminium foil. In this discussion an investor provides his experience with a quote to remove it. “We have been quoted $3.50/m2 installation cost here in Wellington with us supplying materials.” While another investor was told it will cost her a couple of hours of labour at $55 per hour.
The inconsistencies are a warning to all. It’s not just Landlords, but home owners too, who may find themselves on the wrong side of the equation, so don’t be caught out do your homework, get a few quotes and ask questions.
This blog article was written for PropertyBlogs by Mobilize Mail.