Throughout the last few years the discussion about the regulation of the property management industry has been common. Property managers have had free reign to do as they please without government oversight. However, earlier this year Associate Housing Minister, Poto Williams, released a discussion paper outlining plans to clean up the industry, including a new licensing regime requiring property managers to comply with a code of conduct, and a complaints process. The proposal includes several options for regulating property managers, though it would not apply to landlords who own a property as they are already subject to regulation under the Residential Tenancies Act. For most property managers this will mean business as usual, but for others this could mean the end of an era.
As it stands, anyone can set up a business as a property manager with zero experience or qualifications. They don’t need insurance, nor do they need to put their clients rent through a trust account. All this responsibility, with lack of regulatory oversight, puts property owners at risk. There are several horror stories out there of negligent property managers failing to distribute funds and using them for their own personal gain. The proposed legislation could prevent things like this happening, while also shining a much-needed light on the reputation of property managers New Zealand wide. Even though the level of oversight should be put up for debate, I think it is widely accepted throughout the industry that this regulation is long overdue. It would appear to benefit the whole picture, from tenants to property owners, and let “proper” property management companies such as ours move forward with confidence.
Jackson Farron
