The extension of a fixed term tenancy agreement will not activate a start date for Healthy Homes compliance.
Previously, MBIE advised that an extension, as far as Healthy Homes compliance is concerned, is the same as a renewal.
MBIE have now changed their position, given that the only aspect of the agreement changing is the end date.
“Our earlier position was that an extension is effectively the same as a renewal, however, we submitted a request to review this with our Legal team and then consulted HUD on our revised view where they said they ‘did not disagree’ with our updated guidance,” Tenancy Services Senior Engagement Advisor Raymond Suen said.
“This means that an extension of a fixed-term tenancy agreement, given that only the end date is changed, will not affect the healthy homes compliance date.
“The compliance date will then be either 1 July 2024 (for private rentals), or within 90 days of a new or renewed tenancy.”
Example
You make and sign a new one-year fixed term tenancy with a group of tenants in January 2021. Both parties agree to extend the tenancy agreement for an additional 6 months until June 2022. The rental property is not required to comply with the Healthy Homes Standard within 90 days because of the extension.
The tenants give notice to end the tenancy in June 2022. You make and sign a new fixed term tenancy in June 2022. You are required to comply with the Healthy Homes Standards within 90 days.
For any further questions, contact our Senior Consultants on 09-304-0853.
Please note – ‘Extensions’ are not defined in the Residential Tenancies Act. We would advise all our clients who are extending a fixed term tenancy after July 1, 2021, (and not complying with the Healthy Homes Standards) to do so with caution. Ultimately the Tenancy Tribunal may have a different opinion on what constitutes an extension.
