The long-awaited Labour reform, aimed at regulating the property management sector, has finally been presented before Parliament. The Residential Property Managers Bill (the Bill) was introduced on 18 August 2023.
The Bill requires residential property managers and residential property management organisations to be regulated by the Real Estate Authority. The proposed regulations outline the need for appropriate licensing and training, adherence to industry standards, and a structured system for addressing complaints and disciplinary matters.
But how does this Bill affect self-managing landlords?
Sections 145 and 146 seek to modify the RTA, enabling The Tenancy Tribunal to order a landlord to use a licensed property manager for their tenancies if the landlord has committed two unlawful acts within five years.
The unlawful acts would be considered breaches of the following areas:
- Breach of the landlord's responsibilities regarding cleanliness, maintenance, smoke alarms, compliance with healthy homes standards, building, health, and safety requirements (section 45(1A) or 66I(4)
- Breach of the landlord's responsibilities concerning contaminated properties (Section 45(1AB) or 66I(5))
- Issue of retaliatory termination notices (Section 54(3))
- Attempts to end a tenancy without valid reasons (Section 60AA)
- Attempts to contract out or undermine the RTA (Section 137(2))
Such violations aren't mere "honest mistakes" and can genuinely be described as serious misconduct. So landlords should exercise greater diligence, especially in ensuring compliance with Healthy Homes standards and the procedures for terminating tenancies.
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