Property managers review underwayJustice
A public consultation document aimed at gathering information and views on the activities of property managers has been released, Justice Minister Simon Power announced today.
"Between 20 per cent and 30 per cent of residential property owners use property managers to find tenants, collect rent and manage their properties, and there is also a substantial amount of commercial and rural property in the hands of property managers," said Mr Power.
"This adds up to billions of dollars worth of property being looked after by someone other than the property owner. People need to have confidence that property managers will carry out their duties appropriately, and that if things do go wrong there are adequate mechanisms available for redress.
"The public consultation document seeks perspectives on all aspects of the industry, but specifically asks whether there are any gaps in the law relating to property managers that are causing problems for property owners. If the review finds that regulation is desirable, the public is also asked to comment on how property managers should be regulated."
The review of the regulation of property managers arose out of concerns expressed last year during consideration of the Real Estate Agents Act 2008. These concerns mainly related to the security and protection of assets managed by property managers.
The Ministry of Justice is leading the review process and is keen to gather the views of those who have a stake in property management, such as property owners, property managers, real estate agents, and industry organisations. Others who interact with property managers, such as tenants and tenancy advocates, accountants, lawyers and consumer organisations, are also encouraged to provide comments.
"I look forward to a positive response to this public consultation document by way of informed comment and feedback, to enable the Government to properly consider the way forward for this industry," said Mr Power.
The public consultation document is available at www.justice.govt.nz/property-managers-review.
Submissions can be posted to Ministry of Justice, PO Box 180, Wellington 6140, or emailed to PropertyManagersReview@justice.govt.nz, and should be received by 16 March 2009.