Property managers have avoided extra regulation after a review found additional laws wouldn’t be justified and would unfairly add compliance costs.
Associate Justice Minister Nathan Guy said issues arising between property managers and owners usually resulted in losses of less than $15,000, which would be under the new limit proposed for Disputes Tribunals, and would best be left up to the tribunals.
"Property managers are already subject to a wide range of obligations under the general law, including contract law and the Fair Trading Act, which can be enforced through the Disputes Tribunal and the courts," he said in a statement.
Guy said the regulation of an occupation where it would reduce the risk of significant harm and the market or industry wasn't able to self-regulate adequately, and any extra burden on property managers could result in the loss of jobs.
The Ministry of Justice review took place after comments to the Justice Select Committee raised the prospect of excluding residential letting services and property management in general from the Real Estate Agents Bill.
The bill, passed in September last year, stripped the Real Estate Institute of its powers to regulate the country's 18,000 agents. A new independent authority will be set up under legislation passed by Parliament, and will have sterner powers than the previous self-regulating body.
Former Associate Justice Minister Clayton Cosgrove pursued vigorous change to the laws governing the sector after he received numerous complaints about real estate agents.
Source: Landlords.co.nzcomments powered by Disqus