Property managers are being advised to ditch landlords who haven't insulated their rental properties as both could potentially be liable to a fine of up to $4000 each.
The Real Estate Institute of New Zealand (REINZ) chief executive Bindi Norwell said it was not just a fine but property managers could suffer reputational damage if they were found to be non-compliant.
Her comments followed the Residential Tenancies Act coming into effect from July 1 that required landlords to put underfloor and ceiling insulation in their rental properties where reasonably practicable.
The Northland Property Investors Association believes the rate of non-compliance in the region would be more than one third due to a last-minute rush to have properties insulated as well as the costs involved.
The Ministry of Business, Innovation and Employment (MBIE) said the Act did not allow for extensions, and landlords have had three years to have their rental properties insulated.