Property managers aim to lift standards

Independent property managers say work is going on within their industry to prepare for possible regulation.

The letter, signed by 26 organisations including real estate agency Barfoot & Thompson, was delivered yesterday by the Anglican Advocacy to Housing Minister Phil Twyford and Justice Minister Andrew Little.

It coincides with consultation on proposed reforms to the Rental Tenancies Act.

Currently the proposals do not include the regulation of property managers, but the letter said rogue managers were bringing the whole industry into disrepute, and not to include it in the reforms ‘‘would be an opportunity lost’’.

Suggestions included qualifications for property managers, a requirement that they hold a licence, and a requirement that all tenancy-related funds are held in a separate, audited trust account.

Property managers used to be members of the Real Estate Institute of New Zealand (REINZ) but were left out when the Government regulated real estate agents eight years ago.

Now the sector is largely split between those affiliated to real estate agencies and REINZ, and the Independent Property Managers Association (IPMA), which is merging with the Property Institute.

IPMA president Karen Withers said her group declined to sign the letter, as it wasn’t asked for input.

But the group had already ‘‘grabbed the reins’’, and was working on a framework that would give a practical picture of what regulation could look like.

‘‘We have no issue with regulation, if it’s done the right way,’’ Withers said.

‘‘Just a knee-jerk regulation to put it under an existing banner or some banner that doesn’t do it properly could actually send us all in the wrong direction.

‘‘So we’re working behind scenes to raise the standards, and I think everyone agrees that needs to be done.’’

The framework would include private landlords who handled the bulk of rental properties, she said.

Many property managers already had ‘‘the one and only qualification for property managers’’, a level 4 certificate in property management from the Skills Organisation.

‘‘It’s quite a good starting point but we’re aiming a lot higher than that.’’

Asked whether IPMA believed money collected for clients should be compulsorily held in trust accounts, Withers said there was ‘‘a lot involved with that’’ and declined to comment further.

All IPMA’s members undertook to hold their rental funds separately, she said.

Kiri Barfoot, a director of Auckland real estate agency Barfoot & Thompson, said her agency had a property management service and it adhered to the REINZ code.

However, not all property managers held those standards and that was why her agency had signed the letter.

She said a landlords’ register could be a way of setting a minimum level of accommodation.

‘‘Most landlords are pretty good and want to look after the house and will fix things, but there are a minority that will resist spending any money.’’