You could certainly say that new builds have fewer issues for investors than existing properties. This is partly because they are far more likely to meet the criteria in the healthy homes legislation.
Healthy homes standards made the biggest difference
While changes to the Residential Tenancies Act took effect in August 2020, what has made the biggest difference to investors is the healthy homes standards which were introduced in July 2019. This legislation brought minimum standards for rental homes, with which investors have to comply.
Being an investor turns you into a landlord
There are a number of boxes to tick when you’re building a new home but if you’re an investor, you have a couple of extra obligations. Things you absolutely must do. Of course, being an investor turns you into a landlord.
Whether you’re a hands-on landlord or you use a property manager, you still have the same responsibilities when building, so let’s take a look at the new build checklist for investors.
Simply put, there needs to be a fixed source big enough to heat the main living room to 18 degrees in winter.
The actual mathematical calculation looks like this. h = [t + v + (f × 40)] ÷ 1000
It’s all about what’s called an R-value. This is a measure of thermal resistance which is essentially how well insulation stops heat loss. There are three standards for the ceiling, depending on the geographic location of the property. And one floor standard, right across the country.
You need to be able to open a window, door or skylight in every room and if it’s a bathroom or kitchen, an extractor fan vented to the outside is mandatory. This is all about removing moisture and recognising that dry air is easier to heat.
Moisture and drainage
You must have efficient drainage for removing the storm water, surface water and ground water. And if the property has a sub floor – the bit under the house where there’s a space above the ground – you must have a barrier to block ground moisture rising. It’s all about moisture prevention and recognising dampness can lead to poor health outcomes for tenants.
As a landlord you must make sure the property has no unreasonable gaps or holes in the walls, ceilings, windows, skylights, floors and doors which would cause noticeable draughts. Because energy is being wasted, homes with draughts are harder and cost more to heat.
Let’s face it, getting a new build right is essential even if you’re not an investor. We all deserve to live in warm, dry, energy efficient homes. And no one would argue that long term improvements to living conditions in rental accommodation isn’t a good thing.
As an investor, building with Longview Homes means you’ll get a new build which absolutely meets the standards set out the residential tenancies legislation. You can be reassured Longview Homes will have your new build covered. Your future tenants will be happy and you’ll be happy. Definitely a winning investment combination.
Get in touch with our team or call 0800 100 945 to start your exciting new build investment journey today.
Longview Homes builds both custom and pre-designed homes of exacting quality, built to last. We have locally owned franchises around the country. It would be our pleasure to take on your investment building project.