This in a verbal testimony to the Social Services and Community Committee
As the debate over residential property management regulation gains momentum, REINZ has made a verbal submission to the Social Services and Community Committee.
Representing more than 1,700 residential property management members, REINZ highlighted the need for regulation to ensure accountability, enhance standards, and protect the interests of landlords and tenants alike.
The case for property management regulation
REINZ CEO Jen Baird (pictured above) pointed out the role of the property management sector in New Zealand’s rental market, where nearly one-third of households rent, with half of those properties under professional management.
According to the 2018 Census, New Zealand had more than 7,800 property managers. Excluding commercial property managers, more than 5,000 of these were residential property managers.
“That is a considerable number to operate with no regulation,” Baird said in a media release.
She stressed the importance of holding property managers to specific standards to foster professionalism and safeguard more than 1.4 million people living in rental housing.
“With the housing market facing unprecedented challenges and concerns about rental properties’ standards and management practices, regulatory measures have become imperative,” Baird said.
REINZ on addressing industry challenges
The submission addressed the increasing reliance on property managers by private landlords, the lack of minimum standards for staff training, concerns over client fund management, and the absence of formal complaint avenues beyond the disputes tribunal.
REINZ advocates for property management regulation to address these issues head-on, promoting education, professional development, and operational flexibility within the sector.
Despite opposition claiming regulation could raise property management fees, Baird countered that reputable managers already meet many proposed requirements, with minimal impact on costs expected.
“Those people who use a professional property manager already understand the benefits of outsourcing this complex, 24/7 role,” she said. “Managing a property requires an understanding of many different pieces of legislation, requires good people skills, and you need to be available to your tenant if there are issues.
“This is also a competitive market, and fee level is already a competitive space for residential property managers.”
Baird said that without the Residential Property Management (RPM) Bill, the unregulated property management industry could harm both property owners and tenants by poorly managing billions in assets and rent. This could lead to weak protection for bonds and rent, the leasing of non-compliant properties, higher costs for resolving disputes, negative effects on tenant wellbeing, and unstable living situations that impact children’s education and health.
For further details on REINZ’s position and ongoing efforts regarding the regulation of residential property management, visit the organisation’s website.
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