Article excerpt from the Nelson Mail. Nina Hindmarsh • Reporter. Image supplied by Christel Yardley • Waikato Times
Recent Tenancy Tribunal decisions in Tākaka and Motueka have highlighted a major issue for landlords: a mismatch between insurance meth contamination standards and tenancy law.
At present, most insurers still require remediation if meth residue exceeds 1.5 micrograms per 100cm², a standard introduced in 2017. However, the Tenancy Tribunal, Kāinga Ora and the Real Estate Authority apply a much higher threshold of 15 micrograms, based on scientific advice from Sir Peter Gluckman.
This gap has real financial consequences. In two Tasman cases, landlords were required by insurers to clean properties and pay $2,500 excesses, but the Tribunal ruled tenants were not liable, as the properties were not legally considered contaminated under tenancy law.
In one Motueka case managed by Summit Property Management, initial testing suggested elevated levels, but room-by-room testing showed no area exceeded the legal 15mcg limit. Despite this, the landlord was still unable to recover the insurance excess.
The result? Confusion, unnecessary remediation, and landlords left out of pocket.
General manager Stewart Henry said the split standards were creating confusion.
“Owners look at that and think, ‘it’s contamination’, because that’s what the insurance company and tester are telling them,” he said.
Henry said low-level residue could often be dealt with using simple cleaning.
“But some owners are obviously thinking, well, it’s a contamination because it’s above the 1.5 [micrograms] which is what the meth tester and the insurance company are telling us.”
He said the uncertainty had made property management “a landmine”.
“Once the new rules come in, it’ll mean far fewer unnecessary claims and far less confusion.
The Government has confirmed new regulations coming in 2026, which will:
Until then, landlords are navigating a tricky landscape where insurance requirements and legal obligations don’t always align.
Low-level meth residue can often be addressed through targeted cleaning, not full remediation. Professional property management is critical to:
At Summit Property Management, we stay across regulatory changes so our landlords don’t have to—and we’ll be ready well before the new rules take effect.