Shadi Salehpour poses the question: will I be a better property manager if I were regulated?
‘I welcomed it, not because it would force me to lift my standards, but because of the protection it offered landlords and tenants from those
not-so-great operators’
The answer to the question above is: absolutely not.
I speak for a good number of business owners when I say this, regulation won’t make us better operators. Why? Because the majority of us are already committed to doing the right thing by our clients, our tenants, and our own businesses. We hold ourselves accountable (our reputation depends on it) especially when we have dedicated a lifetime to the property management industry.
Most of us got into this business for similar reasons, for the flexibility, the freedom, and the chance to work with people. You will often hear property managers say they are passionate about both the job and the relationships, and I tend to agree. While we are called property managers, we’re really people managers. But if we’re being completely honest, property management is also a solid business model too, one that can generate income even while you sleep. And that’s exactly why it attracts all sorts of operators.
For me, it’s simple, it’s a great industry, so let’s protect its reputation at all costs.
Property managers bill
Like most rules and regulations, I believe the Residential Property Managers Bill was aimed at the lowest common denominator. But would I have welcomed it? Of course with open arms and heart. Even though I’m still unsure what extra costs it may have added to our already stretched budgets, the question must be asked, would those costs have been passed on to landlords, and eventually to tenants? It would be naïve to think otherwise.
I welcomed it, not because it would force me to lift my standards, but because of the protection it offered landlords and tenants from those not-so-great operators. From what I hear, some business owners tap into the rental account, hold onto overpaid rent, or don’t meet even the most basic legal responsibilities. These are the business owners whose interest wasn’t the relationship, but the bank balance. How many thousands of dollars are lost due to mismanagement of funds, from big companies to small companies? Rotten apples, yes, but also perhaps a lack of training, discipline, and systems and procedures.
Importance of honesty
Recently, a tenancy came to an end. I sent the usual SMS reminder asking the tenants to adjust their last automatic payment, their final rent was only $300. If I hadn’t sent them the message, they were paying their full weekly rent of
over $1000. They were grateful and totally surprised.
Honestly, it would be easy to keep this money. Many tenants don’t ask for a final ledger, they trust us and our system ledgers. Though our accounts get audited at a substantial cost, we have made sending our tenants their statements as part of our “to-do list” when archiving our tenancy. I also tell them it’s good to use for the next time they need to apply for a rental, as it shows their constants payments, they do like this aspect of it. That’s how it should be.
When business managing 1,000 tenancies, small amounts can add up quickly. That’s why ethical practices must come first, even when no one’s watching.
The Residential Property Managers Bill, introduced under the previous Labour government, aimed to:
- establish minimum entry and training requirements
- set a nationwide code of conduct and practice standards
- introduce a formal disciplinary and complaints process.
It would have required every property manager and property management company to be licensed and listed on a public register, with accountability to an independent regulator. The Real Estate Authority (REA) was set to take on this role.
Importantly, the bill also gave the Tenancy Tribunal new powers, landlords found in breach of key responsibilities multiple times
could be ordered to use a licensed property manager.
Lost opportunity
In 2023, the incoming government dropped the bill, to the relief of some (and not others) due to concerns around cost and added bureaucracy.
I understand those concerns. But I also saw the opportunity: clearer standards, better consistency, and a united industry with one strong voice to act on behalf of those who need us most.
I believe regulation will return at some stage, it’s not going away. As an industry, if we want to be seen as professional, respected, and taken seriously, regulation is the bridge that unites us. It’s not there to punish good operators, but to protect the people we serve from those who give the rest of us a bad name.
For landlords out there, ask your property manager if they’re a member of REINZ. REINZ membership forms the backbone of what regulation would look like, and it gives you that extra peace of mind knowing your property manager is held to a higher standard.
