This is a significant step for the residential property management sector and positive news for landlords, tenants, and professional property managers alike.
The Associate Minister of Housing, Hon Tama Potaka, has announced that Cabinet has agreed to develop new legislation to regulate the residential property management sector. The Minister’s press release is available on the Beehive website. https://www.beehive.govt.nz/release/landlords-and-tenants-be-better-undermore-effective-regulation.
You can read about the key features of the proposed regulations on the MHUD website. https://www.hud.govt.nz/our-work/regulation-of-residential-property-managers
The Government is proposing a light-touch model that is targeted at the harms in the sector. The key regulatory proposals include:
• Establishing a registration model for residential property managers and organisations, supported by a Residential Property Management Regulatory Authority
• Requiring residential property managers to be over the age of 18 and meet minimum education requirements or have relevant experience
• A new registration process that covers renewals, expiries, suspensions and cancellation of registration
• Requiring financial, conduct and training standards for residential property managers to reduce harm and support a more professional sector
• Requiring residential property management organisations to hold all client funds in separate accounts from operational funds
• Establishing a complaints and disciplinary process, including a Residential Property Managers Registrar and a Residential Property Managers Disciplinary Tribunal.
These changes are informed by feedback from the sector, including industry and tenant advocates. The aim of these changes is to promote and protect the interests of property owners and tenants and increase owners’ and tenants’ confidence in the delivery of residential property management services.
Importantly for landlords, the proposed regime is aimed at residential property managers and organisations, not private landlords themselves.
This is a milestone that many in the sector have worked towards for a very long time. REINZ, the REINZ sector group, and many experienced operators across the industry have consistently advocated for regulation that lifts standards, improves accountability, and gives both landlords and tenants greater confidence in the people managing rental properties. Harcourts has been proud to be part of that advocacy through Jodine Clark’s representation on the REINZ sector group, alongside others who have continued to press for change over many years.
For landlords, this matters. The proposed changes will create clearer expectations, stronger professional standards, better protection of client funds, and a more consistent framework for complaints and discipline. They will also allow landlords and tenants to check whether a residential property manager or organisation is registered through a public register.
Work is now underway to progress these proposals into legislation, with further detail to come. Harcourts will continue to watch developments closely and keep you updated as the Bill moves through the next stages.Back