Regulating residential property managers
Property managers in New Zealand aren’t regulated, which can mean inconsistent quality of services for tenants and owners. Regulations would introduce national standards around training, licencing and practice for all professional property managers, giving tenants and landlords confidence in the quality of the property management services they receive.
Property managers in New Zealand aren’t regulated, which can mean inconsistent quality of services for tenants and owners. Key stakeholders have highlighted the risk that the lack of common standards and an accessible, independent, disciplinary and dispute resolution process pose to property owners, tenants, and the reputation of property managers. Regulating residential property managers would introduce national standards around training, licensing, and practice for all professional property managers, giving tenants and landlords confidence in the quality of the property management services they receive.
About the proposed regulations
Nearly a third of New Zealand households live in rental accommodation and more than 40 per cent of those residential rental properties are looked after by property managers. Although property managers who are members of an industry association are required to comply with competency and practice standards, the sector as a whole isn’t regulated.
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.
The key features of the proposed regime are set out in the table below:
Feature |
Detail |
Scope |
In scope
Out of scope
|
Compulsory licensing and registration |
Licensees to appear on a public register
Tiered licensing structure
Minimum qualification and training requirements for each licence class |
Further entry requirements |
Minimum age of 18
Fit and proper person test
Industry experience requirements for full and supervisory licence classes (but not 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 |
Regulatory authority |
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
Complaints Assessment Committees can order fines not exceeding $10,000 (individual) and $20,000 (corporate organisation)
‘No wrong door’ for complaints and disciplinary matters |
Independent Disciplinary Tribunal |
REA Disciplinary Tribunal
Powers aligned with those in respect to real estate agents
|
Offences and penalties |
To address issues relating to:
Fines not exceeding $40,000 (individual) and $100,000 (corporate organisation) |
Regulatory stewardship and monitoring |
Te Tūāpapa Kura Kāinga (HUD) to act as regulatory steward for the property managers regime |
Timing |
Legislation to be introduced to the House in May 2023
Commencement mid-2025
Transitional period of 12 months to provide time for regulated parties to meet their requirements and for the regulator to complete licensing and registration of affected parties.
All provisions in force mid-2026 |
Public consultation
Public consultation on the proposed regulations closed in April. Cabinet has now agreed on the proposals to regulate the property management sector.
Indicative implementation timeframes
Milestone |
Target date |
Bill introduced to Parliament. |
May 2023 |
First reading: Members of Parliament debate and vote on the Bill. If successful, the Bill is sent to a Select Committee. |
June 2023 |
Select Committee consults on the draft Bill. |
Mid 2023 |
Select Committee presents a report on the Bill that includes recommendations on any changes that may be needed. |
Early 2024 |
The Bill passes and becomes an Act. |
Mid 2024 |
All provisions (including any required regulations) in force. |
Mid 2026 |