Amidst the evolving stance of the new government towards the Residential Property Managers Bill, the Real Estate Institute of New Zealand (REINZ) is embarking on a renewed 'Call for Change' in the property management sector. The objective is to reinvigorate support for the legislation, ensuring its continued momentum and passage into law. This renewed ‘Call to Action’ implores property managers and the New Zealand public to unite behind the hashtag #betterpropertymanagement, amplifying the industry's voice and leaving no ambiguity in the government's decision as the Residential Property Managers Bill approaches a crucial reading on 29 May 2024.
Underscoring the critical role property managers play in the effective management and maintenance of rental properties across the nation. Nearly one in three households in New Zealand rent, with half of those properties managed by property managers. With over 1.4 million people residing in rental housing, property managers wield considerable influence over significant wealth and retirement savings in New Zealand, yet the industry operates without essential regulation.
No other profession managing assets of this magnitude is left unregulated.
Baird asserts, "It's not just about waking up to change; it's about being in the driver's seat, shaping decisions before they're made." Highlighting the advocacy journey that began in 2019 with the launch of 'A Call for Change'. REINZ has relentlessly championed its members and provided the government with a comprehensive roadmap for regulation over the past five years. Given the unprecedented challenges in the housing market, regulation of property managers is vital for the property management sector.
Without intervention, the industry risks managing billions without safeguards, potentially harming both property owners and tenants. Baird emphasizes the urgency for the Residential Property Managers Bill to pass, stating, "We need this legislation to ensure protection, compliance, and industry standards."
Addressing concerns about potential increased fees, Baird notes, "Increased regulation is unlikely to lead to higher fees for reputable managers. Those who choose professional management understand the benefits of expertise, 24/7 availability, and competitive fees." She points out that the cost is minimal compared to increases in property value, compliance, and the overall health and wellbeing of tenants when managed by a reputable property manager.
REINZ delivered a verbal submission for the regulation of the residential property management to the Social Services and Community Committee on 19 February emphasising the need for balanced and effective regulations to safeguard both landlords and tenants.
The Submission outlined that legislation should address:
• Private landlords are increasingly using property managers to handle their investments due to the complexity and lack of training and standards in the
Residential Tenancies Act
• The lack of formal checks on client funds as bond fraud is common,
• The single formal avenue for landlords to raise concerns about property managers
• Variance in the quality of services offered.
REINZ urges the government to take decisive action, with Baird stating, "The solution is ready; it's time for the government to act! Without the RPM Bill, the industry risks inadequate protection, non-compliant spaces, increased dispute costs, and negative impacts on the well-being of renters.’’
Highlighting the positive impact of high standards of property management on the lives of all New Zealanders, Baird acknowledges REINZ's tireless efforts behind the scenes. She now issues this new call to action, urging the public to share their stories using the hashtag #betterpropertymanagement and amplify the message that the legislation must pass.
Baird concludes, "We know that a high standard of property management has an incredibly positive impact on the lives of all New Zealanders. It's time for everyone to come together and make our voices heard. Let's make New Zealand's property management landscape better for all."
For more information on the legislation requirements, and REINZ submissions, or to schedule an interview with Jen Baird, please contact:
Laura Wilmot
[email protected] or [email protected]
021 953 308
The Real Estate Institute of New Zealand (REINZ) is a not-for-profit membership organisation with origins dating back to the early 1900s. We support over 17,000 real estate professionals across New Zealand (representing over 90% of the real estate profession). Our members work in all areas of real estate – residential and rural sales, auctioneering, business brokers, commercial and industrial sales and leasing, and we have more than 1,500 residential property management members.