Private landlords may fall through the gaps
A national register for private landlords could help property owners navigate increasingly “tricky and complicated” rules, says a Hamilton property manager.
Waikato Real Estate manager Oliver Pearson says landlords doing it themselves may fall through the gaps in the proposed Residential Property Managers Bill (RPM), which passed its first reading last year before going to select committee.
It was first introduced under the Labour Government in August 2023 to ensure all property managers were qualified and accountable by establishing licensing, training and education requirements, requirements to ensure industry practice standards are being met and providing accountability by establishing an independent, transparent, and effective complaints and disciplinary process.
According to the Bill, almost one third of New Zealand households live in rental accommodation, and housing affordability challenges mean that an increasing proportion of households are expected to need to rent long-term.
Currently, residential property managers are responsible for managing around 42% of the residential tenancy market.
Pearson is supportive of the bill and says while most property managers are doing the right thing already, he believes regulation will raise the standard of the industry.
“But it’s also actually very tricky being a property manager and or owning a rental property and doing everything correctly with regards to your tenants and tenancy.
“I worry that probably some things fall through the gaps with private landlords.
The Residential Tenancy Act is a complicated document with no recent updates and there’s a number of other legislation landlords and property managers must abide by, Pearson says, and that can be tricky.
“And that's probably some of the needs needs looking at as well as looking at property management businesses.”
Pearson says the register for landlords had been one of the ideas floated by others in the industry but it could possibly go one step further with some compulsory online training.
“I think when you register that you should maybe have to do some brief computer based training just on the very basics, like what to do with the bond?
“How to complete a tenancy agreement, the fact you need a tenancy agreement.
“Your rights as a landlord and also what you owe to the tenant as well.”
The Real Estate Institute of New Zealand (REINZ) has been advocating on regulating the residential property management sector for around five years.
Its chief executive, Jen Baird, says there’s been support for the bill from all sides.
This has come from both the industry and tenants’ advocates and she understands it will be moving into its second reading some time in May.
But she can’t see the government wanting to introduce regulation over “private citizens looking over their own assets”.
“You know, this regulation really is about businesses.
“And business people who manage these assets on behalf of the owner.
“Both of those parties though, whether you're a property manager or whether you're a private landlord, have responsibilities to tenants and when we're living in a world where more and more people are going to be lifetime renters, it's important that all parties are treating them fairly.
“I can't see this government wanting to broaden the scope of this or regulate private landlords.
“But I do think it will be an ongoing conversation for the future.”
Property managers were “effectively deregulated” in 2008 when the Real Estate Agents Act came into effect, Baird says.
It’s Labour’s Bill and they remain supportive of it as it goes through the select committee process, Labour’s housing spokesperson Kieran McAnulty said in a statement.
“A large proportion of Kiwis rent and it’s important that the sector has established minimum standards in place.
“It’s my hope the Government will support it. If they won’t, what will they put in its place? Self-regulation has proved not to work so if not this, then what?”
In a statement, housing minister Chris Bishop told the Waikato Times National voted for it at first reading to gather feedback but the regulatory impact statement was “doubtful that the benefits outweighed the costs”.
“I am considering next steps.”