Landlords are left vulnerable by an unregulated property management industry, says the organiser of a petition calling for rental properties to be brought under the Real Estate Agents Act.
By Susan Edmunds
Jeff Brill is a property manager and says he has seen too many landlords given incorrect information by a property manager, getting into trouble.
“I’ve always thought there needs to be a qualification. No training is needed now… you could start your own company managing 100 properties and have all the money going into your cheque account or your TAB account if you wanted to.”
When the REAA was amended in 2008, property management was excluded and what regulation there was, was taken away.
“Anyone can charge letting fees now,” Brill said. “Everyone and his dog has started property management companies. It’s a timebomb.”
He said the Government had made a deliberate decision not to regulate property managers because it did not see the benefit.
He said there was no education required, no accountability for rent money in trust funds and no overall regulatory body for complaints.
“The REAA was set up to protect deposit money for people buying houses, to make sure that $20,000 is safe. But there is more money held in trust by property managers than there is in house sale deposits.”
Source: Landlords.co.nzcomments powered by Disqus