Presenting its arguments to Parliament’s Social Services and Community Select Committee, APIA says the exclusion of private landlords who manage their own properties should be retained in the proposed regulatory framework for property managers, while it endorses the implementation of the two-strike rule as a balanced compromise.

APIA says the existing proposal, introduced by the previous Labour government, reflects principles of fairness, practicality, and the Kiwi ethos of self-reliance.

The association says there are three key reasons for this, as follows.

Standards

Alignment with established professional standards: The proposed regulatory framework for property managers aligns with existing standards governing other professional services, such as lawyers, accountants and real estate agents.

APIA’s general manager, Sarina Gibbon, says to regulate landlords as you would a property manager is the same as banning a taxpayer from filing his own tax return unless he is an accountant. “That goes against the grain of the Kiwi tradition of self-sufficiency and hands-on engagement with personal affairs.”

Trade-Off

Two-strike rule fair trade-off: Despite not seeking to regulate landlords directly, the bill introduces a rigorous standard for landlord conduct through a two-strike rule, which will prohibit landlords who repeatedly violate tenancy laws from managing their own properties.

“This rule represents a fair and commercially pragmatic approach to regulation,” Gibbon says.

“Landlords causing significant harm to tenants by flouting the law should not retain the privilege of self-management. I see the rule does not apply to property managers, so arguably, the bill sets a higher standard of conduct for landlords, enhancing public confidence in the rental sector.”

Clarity

Clarity in regulatory scope: APIA refutes assertions conflating regulation will increase duties and obligations for landlords.

Gibbon says any heightened standards for landlords should be addressed under the Residential Tenancies Act rather than the Residential Property Managers Bill.

“This differentiation ensures clarity in regulatory scope, preventing over-reach that could impede efficient property management.”

Gibbon says a balanced regulatory environment needs to be fostered, serving the interests of landlords and tenants.