APIA Blog

RSS Feed

Shhh! Heat pump breaches quiet enjoyment?

Wednesday, June 24, 2020

An APIA members’ recent endeavour to comply with the HHS heating standards brought a couple of issues to the forefront that are worth unpacking here.

Her experience in brief:

She owns a block of three adjoining flats and made inquiries with a heat pump installer (with whom she has an existing working relationship with) about putting heat pumps into all three units. The installer assessed the property layout and advised her that to go ahead would result in excessive noise being experienced in the adjoining flats (for example, one inverter would have to sit on the roof of the bedroom of another unit). In doing so, she would be breaching s38 and s45(1)(e) of the RTA which guarantee the tenant’s right to quiet enjoyment. She is told that, for this reason, her units would be exempt from compliance.

We absolutely disagree for two reasons:

  1. It is highly unlikely that the inverter of a brand new heat pump would produce so much noise as to breach a tenant’s quiet enjoyment. In any event, quiet enjoyment does not mean silence and is not always about noise.
  2. Even if that is not the case, noise (or the adjoining tenant’s right to quiet enjoyment) would not qualify as an exemption under the Residential Tenancies (Healthy Homes Standards) Regulations 2019 (“the Regulations”).
    1. Even if case law subsequently make allowances to reconcile s38 and s45(1)(e) with the Regulations the likely outcome would be a modified standard (i.e. take all reasonable steps to ensure the standards are met to the greatest extent reasonably practicable) rather than an straight out exemption.

Before we unpack further, note that our commentary assumes the following:

  1. That the inverter of the heat pump being recommended here is not more noisy than other heat pumps on the market;
  2. And if it is, that there are no comparable heat pumps on the market that would produce less noise; and
  3. That there are no other practicable ways to install that would cause less noise disturbance to the adjoining tenants.
Quiet enjoyment does not mean silence

The Residential Tenancies Act does not specifically define quiet enjoyment but refers to it in s38 as a tenant’s entitlement ’… to have quiet enjoyment of the premises without interruption by the landlord… [who] shall not cause or permit any interference with the reasonable peace, comfort or privacy of the tenant…’ S45(1)(e) uses similar phraseology when describing the landlords’ obligation vis-à-vis the actions of the landlord’s other tenants. It doesn’t mean that the tenant has the right to a quiet property but rather the freedom to use and enjoy the property without unnecessary interference/harassment by the landlord.

Quiet enjoyment could be disrupted by noise nuisance but not all noise can disturb a tenant’s quiet enjoyment. The question to ask is whether the noise that arises out of the landlord’s action would substantially diminish the tenant’s ability to use the property as it is intended to be used. We are taking about something that is persistent, excessive, unwarranted, unreasonable or intrusive enough to cause ongoing discomfort/anxiety. An example would be excessive noise from building works (especially when they are significantly prolong or if the tenant has not been properly notified).

S38 and s45(1)(e) only protects the tenant’s peace, comfort and privacy to a reasonable (objective) standard. Wakefield, Paul vs OTAUTAHI COMMUNITY HOUSING TRUST [2020] NZTT Christchurch 4211907 defines the standard as ‘Whether the interference is unreasonable must be considered objectively, that is from the point of view of the hypothetical reasonable ordinary person.’ As modern heat pumps are not excessively noisy, installing them in compliance with HHS would not, in our opinion, give rise to a breach of s38 or s45(1)(e).

Neither noise nor interference with quiet enjoyment give rise to an exemption

Exemptions to compliance are specifically outlined in the Regulations. Noise and interference with the quiet enjoyment of adjoining tenants are not listed as qualifying events for an exemption. There is a possibility that a qualified installer would consider installing the inverter on the roof of the property to be impractical or unsafe. That doesn’t itself exempt the landlord from complying with the heating standards unless she can also prove that no other alternative forms of heating could be practically installed. Not being able to install a heat pump is not the same as not being able to comply with the heating standard.

If, in future, the Tribunal seeks to reconcile the landlord’s obligations to ensure quiet enjoyment while complying with the HHS standards, we would expect it to arrive at the conclusion of a modified compliance (to an extent that is reasonably practicable) rather than a full exemption.

 

Related: HHS Compliance #1: Heating requirements at a glance

Observations and recommendations

This case serves as a stark reminder that this unregulated (HHS) advisory space could do unwitting landlords a huge disservice. The Regulations having created a captured market for compliance also gave rise to a growing industry of HHS ‘advisors’. The fact that this member sought advice from an installer who has a prior relationship with her would suggest a sufficient degree of trust and reliance. Still, the advice received was incorrect. We cannot stress enough about the importance of putting in the hard work to find an advisor who is knowledgeable and experienced with HHS compliance. It will pay off in dividends! 

Do you have a question about HHS compliance? Become a member today and let us help

 

Recent Posts


Tags

management income robert kiyosaki recycling equity beginner investor sale and purchas rent trespass ring-fencing sublease asbestos partners khh RTAA 2019 legal inspection unitary plan interest only television principal and interest wins mortgage TCIT HHGA rent arrears lvr rta reform anz return subdivision house prices housing bubble Level 4 covid-19 renovation Market report meth contamination bond form positive cash flow Investor story tenancy services watercare tenant personal growth equity property value RBNZ shower dome building development government twg report How to airbnb tenancy issues termination Must know damage speculator smoke alarm ask an expert investment strategy buying rules water bill CoreLogic Standards New Zealand banking reserve bank Q&A HHS sale and purchase letting fee insulation advice Investment tip warm up new zealand auckland council structure scotney williams debt enforcement initio Guest blog productivity landlord rent increase insurance parry v inglis rental wof yield Gluckman Property (Relationships) Act holiday house wealth creation Landlording Sponsored post maintenance data security winz investor negotiation DTI heating nzpif relationship business property management boarding house gluckman report CCC tax capital gain trademe Must knows mindset heater cat finance market rent auckland Tribunal case study Case study ird financial advisers act Jeff Bezos bond housing affordability property maintenance trust p lab skill shortage clnz tenancy tribunal interest rates rental market ventilation HSWA education worksafe warren buffett short-term rental market privacy cash-flow Holler Kris Pedersen Mortgages and Insurance fixed-term tenancy bad tenant cgt first home buying minor dwelling buying buyer's agent ocr property Editor's Choice property cycle off the plan meth LIM Question and answer letting rta election 2017 extractor fan

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo Keith Hay Homes logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited