By William Urquhart | Director – New Zealand Realty
In a country where over a third of the population resides in rental housing, it is alarming that residential property management in New Zealand remains unregulated.
Property managers routinely handle millions of dollars in rent, maintain legal access to tenants’ homes, and facilitate relationships between landlords and tenants that often span years. Despite this, no formal training, licence, or professional oversight is required to operate as a property manager in this country.
In 2023, the Government introduced the Residential Property Managers Bill, a long-overdue attempt to implement industry-wide regulation. In 2024, that Bill was formally scrapped by the incoming Government.
This article outlines the legislative context, the political actors involved, and the implications of that decision — and why New Zealand Realty continues to uphold the professional standards that Parliament refused to legislate.
The Residential Property Managers Bill, introduced by Associate Housing Minister Barbara Edmonds (Labour), proposed a clear and reasonable framework for oversight:
Its purpose was straightforward: to ensure that property managers — like real estate agents — were accountable, trained, and compliant with industry standards.
The contrast in regulatory expectations between property managers and real estate agents is stark.
| Role | Regulated | Licence Required | Financial Oversight | Code of Conduct |
|---|---|---|---|---|
| Real Estate Agent | Yes | Yes | Yes | Yes |
| Residential Property Manager | No | No | No | No |
This is despite the fact that property managers:
The current legal framework is inadequate and inconsistent, leaving both tenants and landlords vulnerable to harm from undertrained or unscrupulous operators.
The Bill passed its first reading in August 2023 and was referred to the Social Services and Community Select Committee. Submissions from REINZ, property investor associations, tenant advocacy groups, and professional agencies were largely in favour.
However, following the 2023 general election, the newly formed coalition government — led by Prime Minister Christopher Luxon (National), David Seymour (ACT), and Winston Peters (NZ First) — reversed course.
In April 2024, Housing Minister Chris Bishop (National) formally withdrew Government support for the Bill, instructing the Select Committee to discontinue consideration.
The justification provided was that the Bill introduced “red tape” that could disincentivise property investment and distract from housing supply priorities.
The decision to halt the Bill was not grounded in evidence-based policy making, nor was it the result of industry rejection. The Bill had broad sectoral support.
Rather, it reflected ACT’s ideological opposition to regulation, adopted by the coalition as part of its broader deregulatory agenda.
The outcome:
In effect, the Government chose to maintain a deregulated status quo that has long enabled “cowboy” operators to undermine confidence in the rental market.
The implications of continued deregulation are serious:
The current environment is not sustainable — and without reform, reputational damage to the industry will only deepen.
At New Zealand Realty, we believe the lack of regulation does not excuse a lack of standards.
We operate as though the Residential Property Managers Bill had passed, with:
We manage over 100 properties in Wellington and surrounding regions, and we do so with the structure, ethics, and systems this industry should already demand by law.
The Residential Property Managers Bill was not perfect, but it was a foundation — and one supported by tenants, landlords, and leading property professionals.
Its quiet dismissal by the current Government — including Chris Bishop (National), David Seymour (ACT), and Christopher Luxon (PM) — represented a step backwards in the pursuit of a fair and functioning rental sector.
At New Zealand Realty, we reject the notion that property management should remain unregulated. We call on future governments to revive the Bill — or something better — and finally deliver a system that protects everyone involved.
Until then, we will continue to lead.
If you are a landlord:
Ask your property manager: Are you audited? Are you REINZ-verified? Where is my rent held?
If you are a tenant:
Ask: Who holds your property manager accountable? What happens if your rights are ignored?
If you are a policymaker:
Ask: Why are we licensing people to sell houses — but not to manage them?
We are not waiting for regulation. We are already operating as though it exists — because it should.
Book your free consultation today:
www.newzealandrealty.co.nz
