Too expensive and wrong – new property manager regulations needed

RPMA chairman David Pearse says the previous model introduced by Labour is all wrong as it is too bureaucratic and doesn’t improve the quality of service to tenants or property owners. “Bishop has told us several weeks ago the cost benefit ratio doesn’t work.”

The bill covers about 42% of the residential tenancy market and involves compulsory registration and licensing for individual property managers and their organisations, training and entry requirements, practice standards, and a complaints and disciplinary process to be administered by the Real Estate Authority (REA).

The RMPA’s main gripe is Labour’s bill is too similar to the Australian regime, which operates under the country’s real estate regulator. He believes real estate companies were delighted the Real Estate Authority is to be New Zealand’s regulator under Labour’s regime because they can regain control over property managers and could make it difficult and unaffordable for independent specialist property management companies.

“We want a new bill to move away from that and our submissions are common sense.  Our argument is that we are a service industry and we don't fit with the real estate regulatory system that is focused on sales.