Udy Realty Echo the Call For Better Property Management

New Zealand is one of the few countries in the OECD that does not regulate its property managers. With home ownership at its lowest level in 60 years and the demand for rentals increasing, the Real Estate Institute of New Zealand (REINZ) is calling on the Government to formally review the need to regulate the property management industry, including public consultation, and announce its recommendations for reform before the 2020 election. Harcourts fully supports this initiative by REINZ.

Harcourts and REINZ believe that regulation is necessary to protect tenants, landlords and the reputations of those property managers who are acting professionally. However, the changes in home ownership levels and demand for rentals in recent years, comprehensive public consultation on the need to regulate property managers has not been undertaken by the government since 2009. 

No regulation means anyone can set up business as a property manager, without any experience or qualifications. Also, they don’t have to hold funds in a trust account, or have insurance, and money collected by property managers can be paid into the property managers personal account. There is no compulsory code of conduct for property managers to keep them accountable, and no clear mechanism to remove poor performers from the industry. Unfortunately, there are some very damaging examples of the damage caused by a lack of regulation, which the media seize on.

So, regulation could require property managers to have a minimum level of education to operate, such as the NZ Certificate in Residential Property Management, plus ongoing education obligations to ensure that they stay up to date with law changes. They should have police or background checks before operating, and tenant and landlord funds must be held in a trust account. Also, a mandatory Code of Conduct or set of standards to keep them accountable, and fines or sanctions applied if they don’t follow the Code of Conduct or standards.

Together with REINZ, Harcourts is committed to protecting tenants, landlords and the property managers who do act ethically and transparently, by advocating for the regulation of the residential property management industry.

In response to the property management industry becoming deregulated over a decade ago, Harcourts offices maintained professional standards and their offices continue to hold rental funds in audited trust accounts and hold business insurance that protects their people and clients.

Harcourts has its own accreditation programme that ensures their property managers maintain a high level of service and attend Harcourts and industry training annually. Harcourts also supports their property managers who are working towards the NZ Certificate in Residential Property Management

To find out more about North Shore property managers, North Shore property management and property managers North Shore please go to https://www.udyrealty.co.nz .