New Zealand Landlords, you’re now covered!
In February this year, the New Zealand government announced plans to improve the standard and want to start regulating the property management industry, starting with proposing a licensing scheme for property management companies and individuals.
This is very good news for the regulation of the whole industry. It is also very positive news for all reputable property management companies.
Why do Property Management Companies need regulation?
Since 2008, when the property management industry was not formally regulated, the industry has mixed up, giving people a feeling of “property management freedom” – anyone can manage a property. Because it is not regulated, there is no direct legal sanction, which means we have seen a lot of unbelievable behaviour.
First of all, there is no requirement to put the landlord’s rent in a separate bank account, and for TRUST ACCOUNT as well, for example, it happens many times that management “companies” credit their own REVOLVING CREDIT loan accounts directly with the interest from misusing landlords’ rent. What’s worse, there have been several instances where the management company has taken over $200,000 in rent directly from the account.
Some property management companies rarely provide information to landlords about property inspections and maintenance (if at all). Not to mention the lack of sanctions and dispute resolution for landlords against unprofessional property managers who violate the law and ignore any new legislation or tenancy laws.
Tenants can report management companies and landlords through the Tenancy Tribunal, but it is much more difficult for the landlord to handle disputes with a management company.
The plan for the property management industry to be regulated under government oversight will greatly improve and enhance the experience of property owners – while giving quality property management companies the opportunity to really shine. Under the proposed plan, tenants or landlords can complain about the conduct of property managers, with fines of up to $40,000 on an individual, or up to $100,000 on an organization. Property managers will be required to undergo continuing professional development as well as attend training courses before entering the job.
The Government detailed the plan in a discussion document that suggests it would be broadly similar to that for real estate agents. It notes that it is not intended to replace the recourse to the Tenancy Tribunal for properties that fail to meet standards.
The document will be available for further consultation until April 19, and a bill will not be ready until 2023 – meaning it will be a long process to enact the law before the end of the term. But it’s still exciting looking forward to this bill.
UNO passed a random compliance inspection conducted by the government in May 2021. After a three-month review of documents and tenant interviews, no problems were identified.
Top 10 reasons to choose Uno Property Management to manage your investment property:
- Since 2009, unlike most of our competitors, we have focused solely on residential property management. Our core business and 100% focus is looking after your investment property.
- More than 200 properties are added each year, with a recommendation rate of over 30% from existing clients.
- GOOGLE reviews 4.7 stars with over 100 reviews.
- The vacancy rate for the past 24 months is 0-0.1%.
- 98.5% of tenants pay their rent on time.
- The host online platform guarantees you 24/7 access to your information – under control!
- Cloud video and live viewings and rentals – even during lockdown, our occupancy rates are faster and rents higher!
- We will arrange viewing on Saturday – can effectively reduce the vacant time of the property and help you achieve more income!
- We will video link you with property inspections and major maintenance items – looking after your investment!
- Number 10 is actually number one and the biggest asset in your long-term investment journey: OUR TEAM!