February 18, 2020
Property Management regulation vital as landlord payouts escalate
The big increase in tenants winning court cases against their landlords is not surprising and another reason why regulation of the property management industry including private landlords must be introduced, according to the owner of Pukeko Rental Managers, David Pearse.
“One of the big problems is that 60 percent of rentals are managed by private landlords and many of them don’t even know their obligations I suspect the actual number of landlord breaches is 10 to 20 times higher than these court cases suggest,” says Mr. Pearse.
“We’ve already seen the massive number of landlords having to pay out their tenants because of inadequate insulation, and we’ll see this escalate next year when the very technical healthy homes regulations come into force.”
Mr. Pearse says the only answer is to introduce a regulatory system similar to the one that has been in place in Wales since 2016. This requires landlords to undertake basic training so they know what their requirements are, while property managers need to be licensed. Local officials also search for non-complying properties.
“The key is to have everyone involved. This includes private landlords, specialist property managers and those who work for real estate companies. This would be in the interests of all tenants and landlords who want to make sure they do the right thing by their tenants,” Mr. Pearse concludes.
Pukeko Rental Managers is a franchise with 24 franchisees scattered across New Zealand. It limits its property managers to a small number of clients, and it won the Supreme Award at last year’s Westpac New Zealand Franchise Awards.
For more information contact David Pearse on 0274 809 534