REINZ welcomes the Government’s proposed regulation of residential property managers. As the industry body representing the vast majority of real estate professionals, REINZ has advocated in this space for several years and considers it an urgent priority. The move to regulate is critical to ensuring an equitable residential tenancies market for New Zealanders.
Supported by professional entry standards and an independent disciplinary and complaints resolution process, the proposed legislation would establish sector-wide practice standards for professional residential property managers. REINZ believes it is right and proper that there are minimum standards and safeguards in place within a profession that collects millions of dollars each week in rent and has an impact on something as important as the homes people live in.
The Ministry of Housing and Urban Development’s (HUD) proposed regulatory framework consolidates much of what REINZ has called for on behalf of the property management sector. REINZ filed submissions with HUD, incorporating substantive feedback from members to ensure regulation is fit for purpose.
REINZ’s primary concern is the proposed timeline, and we strongly advocate for it to be brought forward, so all provisions are in force by mid to late 2024, rather than mid-2026.
Additionally, REINZ’s submissions raise the following key points:
Members strongly advocate for the scope of regulation to be broader, so that commercial property managers and private landlords are also regulated, to bolster confidence in the residential tenancy market as a whole
The licensing regime must be affordable and cost effective and REINZ is calling for the penalties to be reconsidered. Aligning the penalties under the new property management regulatory framework with the general penalties in the Real Estate Agents Act 2008 is not appropriate as they are distinctly different remits
Licensing should not be restricted to individual property managers but extended to property management organisations. This would mean responsibility for insurance and trust accounts sits with the organisation rather than individuals as property managers tend to be employees.
Jo Rae, Head of Property Management, says: “The licensing regime proposed by HUD is welcome news to those in the profession. REINZ has been a strong, vocal proponent for the regulation of residential property managers for several years now and the discussion document answers REINZ’s ‘Call for Change’ campaign. We view the proposed regulatory framework as a very positive and necessary move and largely support the outlined objectives and provisions — although we feel it is imperative it comes into play sooner than mid-2026.”