Proposed Regulation of Residential Property Managers.
Last week, the Government proposed a licensing scheme which would make property managers, who manage tenancies on behalf of landlords, subject to a code of compliance and a fit and proper person test.
The Government's new licensing scheme for Rental Property Managers will not include landlords who manage their own properties, and in my opinion, this is not a well thought through process.
Calls to regulate the property management industry have increased in recent years particularly since the last election. Tenants or landlords would be able to complain about the behaviour of Property Managers and individuals or organisations could face levies. My Blog last month “Beware of The Cowboys” highlighted exactly why in my opinion regulation is needed.
Whilst I welcome the proposals it should include landlords who manage their own properties, as currently they would not be subject to the regulation scheme. More than half of rental properties are managed by private landlords , not Property Managers, so only half the industry would be regulated, and the Government’s aims in my opinion would not be achieved. In saying this I have seen a huge shift from private Landlords managing their own properties to engaging a Property Management Company because of the new legislation introduced making it a more challenging and demanding role.
While it is not perfect, the proposal has the bones in place for a framework that will be transformative for the rights of tenants all around the country and make a material difference to them. Regulation of the industry has been long overdue, and the country’s rental sector would be better for it.
There will be better quality properties, which are better managed. Tenants will have warmer, safer homes, and landlords will be able to know and trust their property managers. It is a win-win situation. We are very pleased at The Rent Shop that we have already had over 90 percent off our staff complete the Level 4 Skills training in Property Management. In my role I am constantly upskilling and training on all new areas of The RTA and continual professional training development with our staff.
While residential Property Managers who are members of industry bodies follow minimum competency and practice standards, the sector as a whole is not regulated. With the New Zealand rental market changing and a greater portion of people renting, it is important to make sure that property owners and renters have confidence that property managers meet their legal obligations.
The proposed regulatory system includes registration, licencing, training, and education requirements, together with industry practice standards and a complaints and disciplinary framework to hold property managers to account.
The Government is seeking feedback on proposals for the regulation of residential property managers. The proposals aim to promote public confidence in the delivery of residential property management services and protect the interests of property owners, tenants and other consumers.
The discussion document and the submission form are available on https://consult.hud.govt.nz/policy-and-legislation-design/property-managers-review/
Read the Minister’s press release on the https://www.beehive.govt.nz/release/government-acts-protects-renters-and-landlords
As a property owner and investor , you want to place your investment in the hands of a property manager you can trust, that would look after your property as if they are their own? Then please call our office at The Rent Shop and speak to one of our Business Development on 09 555-9100