Regulation for property managers is overdue

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It seems nonsensical that property managers aren’t subject to any formal regulation.

Tuesday, September 11th 2012, 12:00AM 7 Comments

by The Landlord

They handle huge sums of money every week, deal with valuable assets – and yet anyone off the street can start up in business, calling themselves a property manager.

Property manager Jeff Brill has set out to change that, with a petition launched this week calling for training and rules around property management.

At the moment, anyone can start up a company, take letting fees and look after rent, without having to prove they know anything about what they are doing.

Brill wants more professionalism enforced so that people have to show they are experienced and trustworthy before anyone puts them in charge of their investments.

Considering the amount of money that changes hands every week, and how vital that rent money is to a lot of landlords, the fact that he even needs to make the call seems crazy. Why are the standards so lax?

Brill says the Government just doesn’t see the need for rules or official bodies to tell with managers. But as he points out, there is more money dealt with by property managers than real estate agents – and the law is very clearly set out to protect the deposits agents have to handle.

Property management isn’t covered by the REAA – what regulation there was was removed in 2008, when the act was revised. 

Adequate regulation and systems would not only protect landlords but they would give added kudos to the many property managers who operate professionally and with landlords’ best interests at heart.

Australia has regulation on property management – it’s only New Zealand that is missing it.

Brill's petition already has good levels of support, with backing from the REINZ and Auckland Property Investors' Association.  It will be interesting to see what response, if any, it elicits from Government.

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