Property Management

Broad support for regulation of property mangers

Next year’s introduction of a Government bill to regulate property managers has been a long time coming, says the Real Estate Institute of New Zealand (REINZ).

Wednesday, November 23rd 2022

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.”

He says the new regulations will obviously increase property managers’ overhead costs and this will filter down to tenants in higher rents over time. 

Lewis says while lawyers, doctors, accountants and other professionals have been regulated for some time, it has not stopped rogues operating within those professions and it will be the same for property management. “Just because property managers have to adhere to a strict set of new laws doesn’t mean the odd one won’t operate outside of them.”

Self-managing landlords will not be regulated and Lewis says a meeting with the Housing Ministry and MBIE a couple of weeks ago reinforced this. “There is no intention to licence self-managing landlords. We would hardly be ripping ourselves off.”

The NZPIF offers a self-managing landlord course and encourages its 3,500 members responsible for about 60,000 tenancies to undertake it. It not only covers the legal responsibilities of landlords and a professional attitude towards tenants but also other areas, such as improving the value of a property.   

REINZ’s Baird says regulation recognises the importance of professional property managers and will bolster confidence in the residential tenancy market as a whole,” she says. “The Real Estate Authority, which already regulates real estate professionals, will regulate residential property managers — a move our members support.”

Acceptable maximum level of methamphetamine residue

The inconsistency in the measurement of methamphetamine residue has caused confusion and concern for some time, says Baird.

“It is important there is clarification of what level of methamphetamine residue is permissible, and who is liable for the cost of decontamination.”

Currently, there are two different methamphetamine testing levels — the methamphetamine testing and remediation standard NZS 8510 (considered best practice at 1.5 µg/100cm2) and the Gluckman Report (15 µg/100 cm2).

This has caused uncertainty for landlords, property managers, tenants and insurers. The Government is inviting public submissions before the standard is clarified in binding regulations on:

  • what the acceptable maximum level of methamphetamine residue is;
  • what levels those homes should be decontaminated to, and;
  • when tenancies should be terminated due to high levels of residue.


No comments yet

Heartland Bank - Online 6.69
Unity 6.99
SBS FirstHome Combo 7.05
ICBC 7.05
China Construction Bank 7.09
Co-operative Bank - First Home Special 7.09
Wairarapa Building Society 7.15
ANZ Special 7.24
Westpac Special 7.29
ASB Bank 7.29
BNZ - Classic 7.29
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
TSB Special 6.75
China Construction Bank 6.75
ANZ Special 6.79
Unity 6.85
BNZ - Classic 6.85
ICBC 6.85
ASB Bank 6.85
Wairarapa Building Society 6.85
Westpac Special 6.89
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
BNZ - Classic 6.55
ASB Bank 6.55
SBS Bank Special 6.59
Kiwibank Special 6.59
AIA - Go Home Loans 6.69
Co-operative Bank - Owner Occ 6.75
TSB Special 6.79
Westpac 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

More Stories

BREAKING: OCR 5.50% - Monetary Policy remains restrictive

Wednesday, February 28th 2024

BREAKING: OCR 5.50% - Monetary Policy remains restrictive

The Monetary Policy Committee today agreed to hold the Official Cash Rate (OCR) at 5.50%.

Sales dive to new depths – lending at low DTIs

Wednesday, February 21st 2024

Sales dive to new depths – lending at low DTIs

House sales have plunged to their second lowest level in about 40 years, only 2% up on January’s sales last year, which were the lowest since 1983.

DTIs will have no significant impact on house prices immediately

Tuesday, January 23rd 2024

DTIs will have no significant impact on house prices immediately

The Reserve Bank doesn't expect its proposed DTI restrictions to have a significant impact on house prices in the short-term.

RBNZ gives details of new lending rules

Tuesday, January 23rd 2024

RBNZ gives details of new lending rules

The Reserve Bank has reveled its proposed debt-to-income (DTI) restrictions alongside plans to loosen loan to value ratios (LVR) for residential lending.