2021 milestones in Residential Property Management

2021 saw several milestones reached in the property management sector. Let’s revisit some of the primary focuses of the sector over the year and what it will mean as we step foot into 2022.

Many of the regulations introduced under the Residential Tenancies Amendment Act 2020 were brought into force on 11 February 2021. In terms of security of residential tenure, an exception to the new regulations was fixed-term tenancies signed prior to this date. This has created some confusion, as these tenancies retain the right to end their tenancy under the old notice periods and can be renewed, extended or varied without losing that ability.

Healthy Homes Standards

Healthy Homes Standards were a top priority for property managers, with all boarding houses to be compliant by 1 July 2021 and all private rental properties to comply within 90 days of any new or renewed tenancy entered on or after 1 July 2021. All private rentals are required to be compliant with Healthy Homes Standards by 1 July 2024.

As the primary focus has been on the heating standards and installation of heat pumps, concern was raised by many, including REINZ, that the heating formula may need some fine-tuning. The Government has acknowledged that this needs to be reviewed, and we are waiting for further information.

REINZ members have indicated that many landlords have gone ahead and completed their Healthy Homes Standards in advance of their Healthy Homes compliance dates.

However, the recent lockdown created setbacks for contractors and the supply of items such as heat pumps and vapour barriers. REINZ provided examples to the Government regarding this concern and requested an extension of three months to the Healthy Homes Standards timeframe for tenancies entered into or renewed after 1 July 2021. We await further updates on this.

COVID-19 Response (Management Measures) Legislation Bill

Further Alert Level 4 lockdowns generated uncertainty and concern for tenants, landlords and property managers. The Government introduced the COVID-19 Response (Management Measures) Legislation Bill that, if passed, will allow restrictions against tenancy terminations to be switched on and off in response to Alert Level 4 by ministerial order.

The measures seek to provide clarity and certainty for landlords and tenants in the case of a return to Alert Level 4. REINZ provided written and oral submissions on this Bill. While we supported the Bill’s intentions, we expressed our concerns that the tenant would need to be 60 days in rent arrears before the landlord’s right to terminate the tenancy would be permitted under the Bill. Property managers want to work with tenants who are in arrears; often, a mutually agreeable repayment plan is more manageable than a large debt to repay.

REINZ also provided valuable member feedback to government departments on other important issues such as the methamphetamine review, physical assault implications and family violence regulations. However, the review dates have been delayed due to COVID-19.

A growing profession

It is encouraging to see a trend towards private landlords using professional property managers to manage their investments. Data obtained from the Tenancy Services Bond Centre indicated that of the total bonds lodged in the past 24 months, over 50% were lodged by property management companies.

Property managers are continuing to upskill, which has seen an increase in members completing REINZ’s Beginners Guide to Property Management and The New Zealand Certificate in Property Management. REINZ will continue to increase educational offerings for this sector and provide ongoing guidance and support into the new year.

Jo Rae

Head of Property Management, REINZ