What Happens if Tenancy Services Audits Your Rental Property?

Being a landlord in New Zealand comes with important legal responsibilities under the Residential Tenancies Act 1986 (RTA). In addition to responding to tenant complaints, Tenancy Services also carries out proactive compliance checks on rental properties.

These audits aim to ensure landlords are meeting their obligations – and if you own a rental, it’s worth knowing what to expect should your property ever be selected.

Why Does Tenancy Services Audit Rental Properties?

From time to time, the Tenancy Compliance and Investigations Team reviews properties in certain areas or focuses on specific landlord obligations.

This doesn’t necessarily mean you’ve done anything wrong. Their role is to:

• Monitor and investigate compliance with tenancy law

• Educate landlords about their responsibilities

• Take enforcement action where serious non-compliance is found

Your property might simply fall within an area currently being checked, or the audit might focus on standards like Healthy Homes compliance.

What Documents Will Tenancy Services Request?

If Tenancy Services contacts you, they will ask for proof that your property is legally compliant. Typically, this includes:

• Tenancy agreement – A signed, written agreement is required for every tenancy, along with a Healthy Homes Compliance Statement.

• Proof of insulation – Receipts, installer records, compliance certificates, or photos of ceiling and underfloor insulation.

• Proof of heating in the living area – Evidence that the heating meets Healthy Homes standards, such as receipts or calculations from the heating assessment tool.

• Proof of ventilation – Invoices, photos, or compliance certificates showing extractor fans in kitchens and bathrooms, or proof of exemption.

• Proof of drainage, moisture ingress, and draught stopping – Maintenance records, receipts, or photographic evidence.

Landlords must legally retain these documents for the duration of the tenancy and for 12 months after it ends. Having this information organised makes the audit process simple.

Understanding Your Legal Responsibilities

The audit will focus on whether you are meeting minimum legal standards under the RTA. Key requirements include:

• Written tenancy agreements are mandatory – failing to have one is an unlawful act and can lead to fines.

• Healthy Homes statements must be provided for all new or renewed tenancies since 1 December 2020.

• Healthy Homes standards (heating, insulation, ventilation, moisture control, and draught stopping) must be met within the compliance timeframe for your tenancy.

Non-compliance can result in warning letters, infringement notices, Tribunal orders, or financial penalties – even if the issue was unintentional.

What Happens If You Can’t Provide the Information?

Tenancy Services usually gives landlords 10 working days to respond to an audit request.

If you don’t provide the requested documents, or if the records show your property isn’t compliant, they can:

• Issue a warning letter

• Serve an Infringement or Improvement Notice

• Refer the matter to the Tenancy Tribunal

• Impose fines or exemplary damages

In other words, they have the tools to enforce the law – and they will use them if necessary.

How Landlords Can Prepare for a Tenancy Services Audit

Even if you haven’t been contacted, it’s smart to manage your property as though an audit could happen tomorrow. Here’s how to prepare:

✅ Keep a signed tenancy agreement and Healthy Homes statement for every tenancy
✅ Create a compliance folder – store receipts, certificates, and photos for insulation, heating, ventilation and repairs
✅ Stay on top of Healthy Homes deadlines – make sure any upgrades are completed and documented
✅ Retain all documents for at least 12 months after a tenancy ends

Good organisation now means less stress later.

The Bottom Line for New Zealand Landlords

An audit from Tenancy Services isn’t something to panic about – it’s a routine part of ensuring New Zealand’s rentals are safe, warm, and compliant.

For landlords who have kept up with their paperwork and Healthy Homes obligations, the process is straightforward.

For those who haven’t, it’s a timely reminder: being proactive with compliance is always easier (and cheaper) than dealing with enforcement later.

Oliver Pearson

Manager and Property Investor for 20+ years

Oliver Pearson

Manager and Property Investor for 20+ years

Oliver Pearson began investing in property aged 21 and has since bought, developed and sold real estate in the UK, USA, South East Asia and New Zealand. After a career in banking he is now on the management team at Waikato Real Estate and has contributed to property articles for NZ Herald, Stuff and Property Investor Magazine.

Based in Raglan, Oliver's passions extend beyond property to surfing, hydrofoiling, and providing a taxi service for his children.