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Regulating residential property managers
On this page you’ll find information about the proposed regulations and the indicative timeframe for their implementation.
About the Residential Property Managers Bill
The Residential Property Managers Bill (The Bill) was introduced to Parliament in August 2023.
The Bill aims to create a comprehensive regulatory regime for residential property managers and residential property management organisations. This provides assurance to property owners, and the tenants that rent their properties, that all residential property managers meet conduct and competency standards and are qualified and accountable.
Nearly a third of New Zealand households live in rental accommodation and around half of those residential rental properties are looked after by property managers. While many property managers abide by appropriate professional standards, the sector as a whole is not legally required to meet minimum conduct, competency and industry practice standards. This could mean inconsistent quality of services for tenants and owners. Regulation would give tenants and property owners confidence in the quality of the property management services they receive.
The proposed new regulatory system will include:
compulsory registration and licensing for individual property managers and property management organisations,
training and entry requirements,
industry practice standards, and
a complaints and disciplinary process.
Have your say
The Bill has now completed its First Reading and has been referred to the Social Services and Community Committee. The Committee has called for submissions on the Bill by 12 October 2023.
Private landlords (including their employees where relevant)
Public landlords: including Kāinga Ora, its employees and agents (for the part of their work that is for Kāinga Ora)
Community Housing Providers and their employees
Residential property management activities where there is no expectation of payment, because they are not in-trade
Commercial property management services, but if they also provide residential property management services they are included for the part of their work that is for residential properties
Licensing and registration
Licensed residential property managers to appear on a public register
Three-tiered licensing structure for residential property managers (provisional, standard and supervisory)
Minimum qualification and training requirements for each licence class
RMPOs are also licensed will appear on a public register
Further entry requirements
Minimum age of 18
Not be barred under the specific prohibitions contained in the legislation
Meet a fit and proper person test (regulator will publish guidance about how they assess whether someone is ‘fit and proper’)
Industry experience requirements (for standard and supervisory licence classes but not for provisional)
Professional and industry practice requirements
Continuing professional development (CPD)
Code of professional conduct and client care
RPMOs to operate trust accounts that are subject to an annual audit
RPMOs to meet prescribed insurance requirements
The Real Estate Authority (REA)
Complaints and discipline
Independent complaints and disciplinary framework to address complaints relating to the professional conduct of a property manager or property management organisation, which involves a breach of the legislation or its associated regulations or rules
‘No wrong door’ for complaints and disciplinary matters
Complaints Assessment Committees (powers aligned to real estate)
Independent Disciplinary Tribunal (powers aligned to real estate)
Offences and penalties
To address issues relating to:
Providing false or misleading information
Practicing, trading, or employing while unregistered or unlicensed
Failing to produce financial records
Failing to hold money in audited trust accounts or rendering false accounts
Failing to disclose a conflict of interest that results in financial benefits
Failing to comply with a lawful summons
Acting in contempt of the Tribunal
Regulatory stewardship and monitoring
Te Tūāpapa Kura Kāinga (HUD) to act as regulatory steward for the property managers regime
If the Bill is enacted:
there will be an 18-month period to allow for the Regulatory Authority to establish systems and to allow for the making of regulations and operational standards.
a further 6 months will be allowed for residential property managers and RPMOs to get licensed before the regime takes full effect (24 months after enactment).