Forty organisations have joined the Real Estate Institute to lean on the Government to regulate property managers but one sector boss whose organisation hasn't joined says the campaign has not gone far enough.

Bindi Norwell, REINZ chief executive, today released a list of 40 businesses and organisations seeking regulation.

"As planning is underway for the 2020 election, REINZ is today calling on the Government to formally review the need to regulate the property management industry, including public consultation, and to announce its recommendations for reform before the 2020 election," her statement said.

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But Property Managers Institute president David Pearse says 66 per cent of New Zealand residential rental properties were managed by private landlords, not businesses, and those private individuals would not be captured by the new system REINZ wants.

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"Those landlords don't know what they need to know. Many of them are ignorant and what REINZ is doing won't help. We need to adopt the system used in Wales where even private landlords are regulated," Pearse said today.

REINZ said a property management before next year's election was sought by Auckland Property Management, Barfoot & Thompson, Bays Community Housing Trust, Bayleys, Citizens Advice Bureau, Community Housing Aotearoa, Consumer, Cowdy, Crockers, the Employers and Manufacturers Association, First Avenue Property, First National, Goodwins, Habitat for Humanity, Harcourts, Inproperty, Living Corporation, Manawatū Tenants' Union, Monte Cecilia – Housing Homeless Families, New Zealand Green Building Council, New Zealand Union of Students' Associations, Professionals, Professionals Whakatane, Property Brokers, the Property Council, Ray White, Realestate.co.nz, Real-iQ, Rental Living Property Management, Renters United, Skills, Spectre Property Management Services, Summit Property Management, Tauranga Rentals, The Rent Shop, Salvation Army, Tommy's Property Management, Tenants Protection Association, Wendell Property Management and Whittle Night & Boatwood.

REINZ is lobbying Housing Minister Megan Woods and Associate Housing Minister Kris Faafoi. Comment was sought from Woods whose spokesperson referred the Herald to Faafoi.

David Pearse, Property Management Institute president. Photo / supplied
David Pearse, Property Management Institute president. Photo / supplied

Pearse said his institute wanted regulation but REINZ was only focusing on real estate agencies which had property management divisions. That ignored the vast majority of landlords who were not with real estate agencies.

Managers in agencies did not often give good service "because of their greed and making property managers into slaves by having them manage up to three times the number of properties that they can effectively manage," Pearse said.

"All private rentals must be regulated and we call on the Government to investigate that option, as is done in Wales," he said.

The Green Party is welcoming the Real Estate Institute's campaign to change property management rules, launched today.

Marama Davidson, Green Party co-leader, said she would work with the real estate bosses.

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"We'll be looking to meet with industry leaders to discuss how we can make progress together. People who rent deserve their homes to be safe and secure and to be treated with dignity. Property managers have a lot of power over tenants with no rules about how they can and can't behave. This needs to change. Unethical behaviour by some property managers includes allegations of extortion, false reporting, privacy breaches and other unacceptable conduct. This leads to poor housing outcomes for many renters including some of our most vulnerable communities," Davidson said.