New Zealand needs to review regulation of property management: REINZ

WELLINGTON, Sept. 25 (Xinhua) -- The Real Estate Institute of New Zealand (REINZ) called on the government Wednesday to review the need to regulate the property management industry, including public consultation, and to announce its recommendations for reform before the 2020 election.

New Zealand is one of the few countries in the OECD that does not regulate its property managers.

REINZ noted this lack of regulation has a negative impact on tenants and landlords who are reporting bad experiences due to property managers acting unprofessionally and not being held accountable for their actions.

"We strongly believe regulation is required to create an industry where all property managers operate ethically and with honesty and transparency, where tenants are looked after, and where landlord's assets are protected. We also believe that minimum education standards should be a pre-requisite to working in the industry and that property managers should hold all client money in a trust account in order to protect both tenants and landlords," said Bindi Norwell, Chief Executive at REINZ.

Norwell stressed that commitment from the government to formally review the need for property management regulation is needed to achieve real success.

"It must be remembered that property managers are the gatekeepers of housing for many of New Zealand's most vulnerable residents. As a result of the lack of controls currently in place, many tenants feel reluctant to complain to, or about, their property manager for fear of losing their homes or jeopardising their ability to rent houses in future," Norwell said.