Petition calls for property management regulation

Tuesday 11 September 2012

Landlords are left vulnerable by an unregulated property management industry, says the organiser of a petition calling for rental properties to be brought under the Real Estate Agents Act.

By Susan Edmunds

Jeff Brill is a property manager and says he has seen too many landlords given incorrect information by a property manager, getting into trouble.

“I’ve always thought there needs to be a qualification. No training is needed now… you could start your own company managing 100 properties and have all the money going into your cheque account or your TAB account if you wanted to.”

When the REAA was amended in 2008, property management was excluded and what regulation there was, was taken away.

“Anyone can charge letting fees now,” Brill said. “Everyone and his dog has started property management companies. It’s a timebomb.”

He said the Government had made a deliberate decision not to regulate property managers because it did not see the benefit.

He said there was no education required, no accountability for rent money in trust funds and no overall regulatory body for complaints.

“The REAA was set up to protect deposit money for people buying houses, to make sure that $20,000 is safe. But there is more money held in trust by property managers than there is in house sale deposits.”

Brill’s petition was started two days ago at www.propmgrpetition.org and he said he had the support of the REINZ and APIA so far.

Comments from our readers

On 11 September 2012 at 11:42 am Nick Powel said:
At our branch and most large real estate companies Property Managers must be licensed real estate agent with the REAA. Also have a individual membership with the REINZ. The REINZ has strict guide lines such as: 1. They must conduct themselves and their businesses under the rules and codes of REINZ; 2. They must operate a trust account and have all monies deposited into that account. They must have that account audited, and make that audit available to REINZ on request; and 3. They must hold current professional indemnity insurance cover to the minimum standard prescribed by relevant REINZ code; and provide evidence of such insurance upon request by REINZ. Nick Powell www.rentmyproperty.co.nz
On 12 September 2012 at 7:05 pm Tom said:
If it moves tax it. If it still moves, regulate it. Are you a govt patsy?

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