REGULATION - WHERE IT MATTERS

Why you should care about regulation

I am getting weary of people making press releases about what should happen with the property management industry when they have never been a property manager. Their recommendations that the industry will be “better” if they have control of it is based purely on self-interest.

 Do they really care about my interests, my owners’ interests, or my tenants’ interests? It is only when you are on the “front-line” do you experience the reality of what is really happening in the industry, and what is needed to make it better.

 Why would commentators say the answer is regulating those in the business, and leave the large portion of private landlords out of the equation?

 My daughter rents a property in Wellington. When I visited I noticed there were no smoke alarms. I started asking questions and discovered they never received a copy of the tenancy agreement. There was no disclosure on the insulation. I asked her to check with the Bond Centre to see if the bond was lodged and surprise – it was not. Is this in the interest of renters?

 Does the industry need to be regulated? Certainly – but licensing should incorporate all those acting as a landlord.

 The best model I have seen to date is the Rent Smart Wales https://www.rentsmart.gov.wales/en

Both property managers and private landlords need to show that they understand their obligations under the RTA and associated legislation. Then they become licensed and can operate in that capacity. The site educates both landlords and tenants of their rights and responsibilities.

 If set up in New Zealand MBIE will have a list of landlords to bring up to date with new legislation but also to do random checks to ensure compliance. Property Managers are given a discount if they belong to a professional property management organisation.

 You can not have any licensing that does not include private landlords. We will see an overall improvement in the industry if all landlords are included. Let’s make a real difference to property management in New Zealand.

Written by David Pearse - Director, Pukeko Rental Managers