Change coming to the property rental market

The government has introduced new legislation to parliament that is designed to protect both tenants and landlords.

The Residential Property Managers Bill would create a comprehensive regulatory regime for individuals and companies in the residential property management industry. This would include:

• Requirements around licensing, training and education.
• Requirements to ensure industry practice standards are being met.
• The establishment of an independent complaints and disciplinary process.

The new system would apply to professional property managers, but not private and public landlords, who are already regulated under the Residential Tenancies Act 1986.

Associate Housing Minister Barbara Edmonds said nearly one in three households rented in New Zealand, and that the residential property management sector was responsible for about half the rental market.

“We know residential property managers play an important role in ensuring tenants are treated fairly and have access to secure and safe rental housing,” she said.

“While many residential property managers abide by professional standards, there’s no current legal requirement for them to do so. It’s clear there’s a gap in the foundations of the sector which we need to fill. Putting safeguards in place is in the best interest of everyone, regardless of whether they’re renters or property owners.”

Public consultation on the proposed regime was held in February-April 2022. In October, cabinet agreed to develop legislation regulating residential property managers and proposed that the Real Estate Authority act as regulator and the Real Estate Agents Disciplinary Tribunal provide tribunal functions.