REINZ was extremely disappointed to learn of the Coalition Government’s decision not to support the Residential Property Managers Bill through further parliamentary stages.
The Bill would impose minimum standards and protections on an unregulated industry that manages billions of dollars in assets for everyday New Zealanders.
"In an industry where a modest one-person property management business can oversee assets totalling $60 million in retirement savings, it is inconceivable that such a significant sector remains unregulated," states Baird "No other profession handling assets of this magnitude operates without oversight in New Zealand."
Nearly one in three households rent and that number will continue to increase. Currently there are no minimum standards requiring residential property managers to ensure they are up to speed on landlord and tenant laws. There is no legal requirement for property managers to hold insurance. There are no checks and balances to ensure tenant bonds and landlords’ rent monies are protected in an independent trust account. Rent and bond fraud is not uncommon. Having no safeguards for client funds puts landlords and tenants at risk.
Amidst a housing crisis, the need for landlords to have confidence in professional management of their assets is paramount. This, along with measures to incentivise private investment, would be pivotal to increase rental supply. Equally, vulnerable tenants deserve to be protected from rogue property managers who do not always abide by the law. Concerns with bond refunds consistently rank among the top three Tenancy Tribunal disputes.
REINZ, on behalf of its members, has been advocating strongly for residential property managers to be regulated for over 5 years. REINZ members are held to high levels of professionalism. To qualify as an accredited property management member of REINZ, members are required to meet minimum standards in professionalism, education and training every year. Their agency must hold rental income in a separate trust account with an independent review/audit annually, and it must hold appropriate business insurance.
REINZ members manage approximately 40% of privately managed residential housing stock, but for the other 60%, standards of professionalism and competence vary wildly. Sadly, not all property managers act ethically.
REINZ will not give up the fight for minimum standards and basic protections for landlords and tenants and will continue constructive discussions with the Government and other key stakeholders.
For more information or to schedule an interview with Jen Baird, please contact:
Briony West
[email protected]
021 953 308