REINZ is thrilled to see the Government’s introduction of the proposed regulation of residential property managers and property management organisations today. It is a long-awaited next step in this important bill becoming law.
As the industry body representing approximately 90% of real estate professionals, REINZ has advocated in this space for several years now and considers it an urgent priority. This legislation is critical to ensuring an equitable residential tenancies market for New Zealanders.
“REINZ has been a strong, vocal proponent for the regulation of residential property managers for many years now and the REINZ’s ‘Call for Change’ campaign and work with Ministry of Housing and Urban Development (HUD) over the past 18 months is resulting in a very positive and necessary move for New Zealand,” add Baird.
REINZ Chief Executive, Jen Baird says this legislation will establish sector-wide practice standards for professional residential property managers.
“Property managers across Aotearoa collect millions of dollars from renters each week and manage hundreds of millions of dollars’ worth of landlords’ assets. This is an important sector that impacts directly on people's lives, whether through access to homes to live in, or in supporting investment goals.”
“We know renters want greater security and we believe that with around 50% of the private rental market managed by residential property managers, enforcing a set of standards for the profession will give much needed assurance to tenants and landlords that their licensed property manager has the requisite skills, training and expertise,” says Baird.
Requiring property management companies to hold appropriate insurance will provide important protection for both landlords and tenants. In addition, property management organisations will be required to operate a trust account which the Real Estate Authority (REA) can require to be independently audited. This is to ensure all funds received on behalf of a client or tenant are always secure.
“Property management continues to grow in complexity. Over the past 4 years we’ve seen a raft of changes to legislation, including the Residential Tenancies Amendment Act, Healthy Homes legislation, changes to the Privacy Act and Health and Safety at Work Act, and more. Add to that environmental and social challenges such as Cyclone Gabrielle and we have a profession that New Zealanders have come to rely on.”
"It’s a complex business so it’s important there are entry standards and an independent disciplinary and complaints resolution process. These are important to ensuring minimum standards and safeguards are in place within a profession that has an impact on something as important as the homes people live in,” add Baird.
REINZ filed submissions with HUD, incorporating extensive feedback from our members.
“REINZ is thrilled to see our feedback has been incorporated, and in particular that residential property management organisations will also need to be licensed. REINZ acknowledges HUD’s support for a bill that will herald positive change for New Zealanders and will continue to advocate for the speedy progress of this legislation,” adds Baird.
The full proposed legislation can be viewed at Residential Property Managers Bill 280-1 (2023), Government Bill – New Zealand Legislation.
Laura Wilmot, Head of Communications and Engagement
021 953 308.