The industry body considers this as an "urgent priority"
REINZ has welcomed proposed legislation on the regulation of residential property managers and property management organisations, saying it was a long-awaited next step in this important bill becoming law.
The industry body, which represents 90% of real estate professionals, has been a strong, vocal advocate in this space for many years now, and considers it an urgent priority to ensure the residential tenancies market remains equitable for New Zealanders.
REINZ CEO Jen Baird (pictured above) said the legislation will put in place 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,” Baird said. “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.”
Under the proposed legislation, property management companies will be required to hold appropriate insurance, providing both landlords and tenants with important protections. The bill will also require property management organisations to operate a trust account, which the Real Estate Authority (REA) can require to be independently audited, to ensure all funds received on behalf of a client or tenant are always secure.
The REINZ chief said property management is a “complex business,” so it’s important that there are entry standards and an independent disciplinary and complaints resolution process in place.
“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,” Baird said.
REINZ lodged submissions with the Ministry of Housing and Urban Development (HUD), incorporating extensive feedback from its 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,” Baird said. “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.”
Read the full proposed legislation at Residential Property Managers Bill 280-1 (2023), Government Bill – New Zealand Legislation.
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