Proposed regulation of residential property managers

Anna
Anna
7 March 2022

Photo by Sora Shimazaki from Pexels

Residential property managers look after over 40% of rental properties in NZ. While many abide by appropriate industry standards, some lack professionalism, entry knowledge and reasonable practice requirements to assure property owners that their properties are not being mismanaged.

Training would be required of new property managers starting their jobs as well as investment in their ongoing professional development. In addition, property managers would have to comply with a code of conduct and can be made accountable through an independent disciplinary and complaints resolution process under the new regime.

It's also been reported that tenants feel reluctant to complain about their property managers for fears of retribution, losing their homes or getting bad references when moving. The new Government proposal is looking to solve this.

The proposed new licensing scheme for rental property managers will not include private landlords who manage properties themselves. This is because most owned only 1 or 2 properties making compliance and training expensive and cost-prohibitive. Furthermore, unlike property managers, private landlords are only responsible for their assets and not for a multi-million property portfolio of other people, mismanagement of which can cause significant reputational and financial damage.

The Government is currently seeking feedback on proposals for the regulation of residential property managers. Follow this link to provide your feedback.

The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice, you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.

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What the community has to say
  • KP
    Kim

    Reading the details this seems a beat up by the Real Estate industry to take control. MyRent for instance is likely to be squeezed out as an advertising medium by Property Managers. The proposal also presupposes that there is a problem caused by PMs but no evidence is given to support this.
    Although private self-managing landlords are exempt, they seem to be the main cause of complaint. Especially immigrant landlords renting to their own ethnic groups.

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