Broad support for regulation of property mangers

As the industry body representing 97% of New Zealand’s licensed real estate agents — and managers of more than half of the rentals under professional management — REINZ has advocated for change for several years. Three years ago it conducted a public Call for Change campaign to encourage the Government to act and consult with the industry to develop regulations.

REINZ made public submissions to the Ministry of Housing and Urban Development (HUD) in April this year and received more than 328 individual items of feedback on the ministry’s proposed regulatory framework, which 93% of its members supported.

REINZ chief executive Jen Baird says it is imperative property management services are regulated so there are standards and safeguards in place for a sector where millions of dollars are collected in rent each week and which has an impact on something as important as someone’s home.

New Zealand Property Investors Federation (NZPIF) vice president Peter Lewis says members are generally in favour of the legislation, particularly making property managers carry trust accounts. Until now property managers have not had to account for the millions of dollars in rent that passes through their hands. “There have been plenty of horror stories of property managers pocketing landlords’ money.”