A Decade Overdue: The need for regulation of property
management in New Zealand
We’re not the only ones saying it: regulation of property managers is long overdue. Our latest report includes first-hand accounts from landlords and tenants across the country about a wide range of issues they have faced when dealing with property managers.
We’re calling on the Government to instate a regulatory body, along with mandatory training and accreditation for all property managers.
Property managers have a high level of responsibility. They keep keys and personal information, handle rent, and conduct inspections. Their companies handle billions of dollars worth of housing, and millions of dollars in rent.
Despite this, New Zealand law does not require them to have a license or any form of accreditation to operate, nor are they required to keep payments in a separate trust account or carry indemnity insurance. This is causing harm to tenants and landlords alike.
Regulatory measures for property managers were called for more than ten years ago. Parliament’s Justice and Electoral Select Committee recommended “immediate action be taken to create an appropriate regulatory regime for property management activities.” 95% of submissions during a public consultation came from property managers, property owners and real estate agents, and the majority supported compulsory regulation. Despite this, the government concluded that it was “not justified.”
The findings in our report indicate that not regulating property managers was a mistake. With the tenancy sector currently under review, now is an opportune time to remedy this. We’re calling on the Government to put things right.