One sector boss explains why he refused to join campaign despite wanting regulation
The Real Estate Institute of New Zealand (REINZ) has released a list of 40 businesses and organisations that joined its campaign for property management regulation.
Bindi Norwell, chief executive at REINZ, said they’re all calling for the government to “formally review the need to regulate the property management industry, including public consultation, and to announce its recommendations for reform before the 2020 election.”
David Pearse, president of Property Managers Institute, however, did not join the campaign and pointed out that 66% of residential rental properties in the country were managed by private landlords, not businesses – so those private individuals would not be captured by the new system being proposed by the campaign.
"Those landlords don't know what they need to know. Many of them are ignorant and what REINZ is doing won't help. We need to adopt the system used in Wales where even private landlords are regulated," Pearse told NZ Herald.
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Pearse clarified that his institute wanted regulation but REINZ was only focusing on real estate agencies with property management divisions – ignoring the majority of landlords who were not affiliated with real estate agencies.
“Managers in agencies did not often give good service because of their greed and making property managers into slaves by having them manage up to three times the number of properties that they can effectively manage,” he said.
“All private rentals must be regulated and we call on the Government to investigate that option, as is done in Wales.”
Meanwhile, the Green Party supports REINZ’s campaign for property management regulation – with Marama Davidson, Green Party co-leader, saying she would work with the real estate bosses.
"We'll be looking to meet with industry leaders to discuss how we can make progress together. People who rent deserve their homes to be safe and secure and to be treated with dignity. Property managers have a lot of power over tenants with no rules about how they can and can't behave. This needs to change,” Davidson said.
“Unethical behaviour by some property managers includes allegations of extortion, false reporting, privacy breaches and other unacceptable conduct. This leads to poor housing outcomes for many renters including some of our most vulnerable communities.”
