Independent property managers hit back

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Independent property managers have rubbished claims by property managers affiliated to the Real Estate Institute that property managers, letting and leasing agents should be included in new regulatory changes to the Real Estate Agents Act 1976 on the same basis as real estate agents and salespeople.

Thursday, July 19th 2007, 9:17AM 1 Comment

by The Landlord

The controversy arose because the government proposes to amend the Act, introducing tougher licensing requirements and disciplinary procedures. However, the review will not apply to property managers or letting agents.

Currently, property managers who are Real Estate Institute members refer to themselves as ‘licensed’, and some of them oppose the proposals, saying their effect is that property managers will no longer have to be regulated. There is, however, no legal requirement for property managers to be licensed, and those who are not REINZ members refer to themselves as ‘independent’.

Independent property manager Glenn Morris says, “There is no argument that property managers should not be licensed, only that they should not be licensed under the Real Estate Agents Act”.

Morris, owner-operator of Glenn's Vacancies Nelson and foundation member of the Independent Property Managers’ Association (IPMA) says the institute’s current qualification requirements are “inadequate for the task of management,” and “lacking in external accounting qualification requirements”.
 
Morris is also the secretary of the Nelson Property Investors’ association. “A common comment,” he says, “is that property management divisions have a conflict of interest with the sales divisions of real estate companies”.
 
Matthew Faid, president of IPMA, questions whether REINZ is “the most appropriate body to be charged with licensing property managers”.

“We would suggest not, as REINZ is in the business of selling houses and in some cases there is a conflict of interest between the renting, managing and selling of properties. The best REINZ property management firms are specialist property management firms only and do not rely on sales commission.”

Most IPMA members, says Faid, are property investors themselves and manage properties from a position of experience, “whereas a lot of REINZ property managers are employees who have no stake in the success of the business apart from their ongoing wage”.
 
“Our members adhere to a code of ethics, use trust account principles when dealing with clients money, and have written agreements with clients.”

IPMA also provides a disputes resolution service, says Faid.

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