Regulation for property managers?

Question from Sue updated on 22nd February 2011:

Is there a law coming into place like the one coming into effect for Financial Advisers regarding the ethics of Property Managers. The reason for this is that I have found Property Managers actually acting for the tenant as opposed to the Landlord so they can get their commission. It also seems some say that the property is all good but don't deliver all the facts to the Landlord. They can end up creating a big loss for the Landlord. I have found this the case in big companies who pride themselves in the marketplace.

Our expert Jeff Montgomery responded:

A review of the regulation of property managers was conducted by the Ministry of Justice in 2009. The outcome of that review can be viewed by visiting: http://www.beehive.govt.nz/release/no+additional+regulation+property+managers. The Residential Tenancies Act 1986 applies only to the relationship between a tenant and landlord. It doesn’t cover the relationship between a property owner and a property manager. I suggest landlords (or property owners) seek independent legal advice from a solicitor or local community law centre regarding any concerns they have with their property manager.

The Department of Building and Housing provides information and guidance on building law and compliance, services including weathertight homes, and advice for tenants and landlords.

 

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