13 June 2024

Property mgmt firm introduces qualification standards as govt abandons Bill 

A property management company is introducing a new qualification standard for its team of property managers after the Government’s move to abandon the Residential Property Managers Bill.

Impression Real Estate which manages around 1,000 rentals in the Auckland region, is aiming to become the first in the market to have all property managers independently certified to the same level four standard that was originally envisaged in the Bill.

This move is expected to help address a chronic shortage of rental properties, according to the company.

Rishabh Kapoor, CEO says while the Government has abandoned plans for regulation, it is critical the industry adopts a level of self-regulation to help restore investor confidence.

Introducing a minimum training standard will provide the same reassurance for investors as would have been present under the Bill, Kapoor says.

“There are a number of property managers out there working out of the back of their car who simply don’t understand the industry’s requirements and legalities. The downstream impact of this is that it can result in thousands of dollars worth of damage for owners and as a result, they often want to exit the rental industry.

“The Residential Property Managers Bill would have changed that by ensuring property managers were licensed, well trained, and subject to a complaints and disciplinary process if they don’t adhere to industry standards.

“Other investment sectors already have similar protections around advisors and we need a way of signalling to the market that residential property management is no longer operating like the Wild West and their multi-million dollar investment has appropriate safeguards,” he says.

“We believe it is possible to replicate the standards that would have been provided by the recently abandoned regulation. Property managers are subject to the same consumer legislation that other industries however without the regulation it is harder to hold them to account.”

 Investors will also increase transparency by mapping the property manager’s processes and displaying them on their website so property owners can understand how they structure their approach.

Kapoor welcomed the 90-day eviction act as a “positive step towards rebalancing the market.”

He was also in favour of an “immediate review into the minimum standards for liveable rental accommodation to protect tenant well-being and mental health.”

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