Chris Bishop speaks about the coalition Government's agenda to fix New Zealand's housing crisis at the Property Council of New Zealand Residential Development Summit.
Video / Sylvie Whinray
The coalition Government will not proceed with the Labour Government’s plans to regulate residential property managers, despite backing from a renters’ lobby group and lawyers.
Housing Minister Chris Bishop said yesterday there was no need to add more pressure to the sector by regulating managers and the Governmentwould not progress the bill from the previous Government.
“New Zealand is in the middle of a housing crisis. Adding more regulation to the rental property market isn’t the way to open up more housing supply. Instead, we need our officials working on policies that will make a real difference to improving housing supply, such as our sensible changes to the Residential Tenancies Act which will encourage more landlords into the market and apply downward pressure to rents.”
Tenant advocate Renters United wanted managers regulated and had called for that for years. President Geordie Rogers has been a strong advocate for managers to be regulated.
“We’re absolutely disappointed, massively shortsighted move by the Government. It’s been incredibly successful in England to the point they’re now extending it to private landlords,” Rogers said today.
Joanna Pidgeon, a real estate specialist at law firm Pidgeon Judd, said today she wasn’t surprised about the Government ditching the draft bill.
“There is not a desire for more red tape with the current Government. Ideally, there wouldn’t be the need for it, but I am aware of a situation where a tenant is still waiting for a hearing on a bond refund case well over a year since their tenancy ended.”
Some tenants had the benefit of property managers within licensed real estate companies but there were unfortunately other managers who were “cowboys”, she said.
“When there is a housing shortage, it is easy for the vulnerable to be taken advantage of.”
Joanna Pidgeon says there are consequences for not paying fees.
Supply and choice were to be encouraged but she had seen landlords and tenants suffer from substandard property managers.
“Landlords and tenants need to do their due diligence when dealing with property managers. What is their training, experience, and qualifications? Have there been negative tribunal findings? These are all important pieces of information to take into consideration. If you are being short or late paid, take action quickly,” she advised.
Bishop said yesterday he had written to the chair of the social services and community committee to inform him that the Government would not back the Residential Property Managers Bill through further parliamentary stages.
“I have requested that the committee ends consideration of this bill,” Bishop said.
The previous Government’s analysis of the bill showed that the cost-benefit analysis was very marginal, Bishop said. The analysis also noted that even those marginal benefits were highly uncertain, with the most certain aspect being the costs.
Desmond Kan was found guilty of misconduct after not paying $52,000 in rent from 2016 to 2019. The Real Estate Agents Disciplinary Tribunal found Kan’s conduct in withholding the rent was “disgraceful” and found him guilty of misconduct after how he treated homeowners living overseas.
A solicitor at Browns Bay’s Stephenson Campbell acting for the owners complained to the Real Estate Authority and reported Kan to the police, who investigated the shortfall, the decision said.
Waymouth said the Kan case showed a big law gap.
“Any cowboy can become a property manager. They’re not subject to a police check, licensing, any regulatory body or training. If he hadn’t been a licensed agent, there could be no formal judicial action taken against him by the sector,” Waymouth complained.
“This is a shocking indictment on the failure of the system, doing nothing to stop the way some property managers act. It’s not just losing the rent. Property managers can deal in an appalling way with tenants and there’s no comeback. It goes much wider.”
Green Party co-leader Chlöe Swarbrick today said renters were “being pushed into the cold”.
The coalition was trying to axe yet another opportunity to improve rentals by dropping the Residential Property Managers Bill, she said.
Anne Gibson has been the Herald’s property editor for 24 years, has won many awards, written books and covered property extensively here and overseas.
