Are Property Owners happy with how funds are accounted for under rentals management

[Bean Counter]

In Queensland this industry requires an audit of trust funds regularly

[Nice]

How would you like to see them accounted for ?

As there are no industry standards or laws in NZ governing this area, there are many different methods in use.

One of the major blue banks will not set up a formal trust account unless you have an RE license.

[Bean Counter]

well i believe anyone can do property management which is crazy..I know the real estate institute is not happy about it

[Bean Counter]

Members of the real estate institute of nz have to abide by the rules of the REA and follow the REINZ code of practice so you would be safer using them rather than
any one else in terms of funds (rental receipts) management.Mind you Im sure some of the bigger entities have systms in place to protect landlords

[Nice]

Members of the real estate institute of nz have to abide by the rules of the REA and follow the REINZ code of practice so you would be safer using them rather than
any one else in terms of funds (rental receipts) management.Mind you Im sure some of the bigger entities have systms in place to protect landlords

I think if you look into it, this applies to the RE part of their operation, not the PM portion. Take a look at the last few PM companies that have done a runner, REINZ seems to have run for cover each time (none have been independants)

[Perry]

Members of the real estate institute of nz have to abide by the rules of the REA and follow the REINZ code of practice so you would be safer using them rather than
any one else in terms of funds (rental receipts) management.Mind you I'm sure some of the bigger entities have systems in place to protect landlords

Oh, dear.

You do need to assiduously search the PT threads on this matter. Start with this one.

Having a code of ethics / practices, set of standards, regulations or whatever does not mean that they will be adhered to. As has been observed, such things do little more than add to the costs of all those involved.

Bindi and co. want to be empire builders - nothing more.

I've lost count of the NZ media reports of serious transgressions by REAs.
The "institute" has a bulk supply of wet bus tickets to slap the transgressors with.
And those are only the ones we get to hear about / see!
So many, actually, that they are no longer regarded as news.

[Bean Counter]

Thanks Perry.Who are Bindi and co?In Queensland businesses dealing in property management have to run funds through a trust account which is audited.
Surely this would provide some deterrent to misappropriation of funds.And as you say there have been plenty of stories in the media about fraud around
property management in this country.The industry is growing fast with the growth of medium and high rise buildings in this country.

[Perry]

Follow the thread linked to. "Bindi & co" are the REINZ.

A problem with internal self-regulation is that the 'disciplinary' groups are from the same industry and subliminally know that the positions each side is in may be one day reversed.

[Nice]

Thanks Perry.Who are Bindi and co?In Queensland businesses dealing in property management have to run funds through a trust account which is audited.
Surely this would provide some deterrent to misappropriation of funds.And as you say there have been plenty of stories in the media about fraud around
property management in this country.The industry is growing fast with the growth of medium and high rise buildings in this country.

No requirement in NZ for a PM company to run funds through a Trust Account.

In fact one of the major Blue Banks will not even set up a Trust Account for a PM company unless they have a RE license; and very few actually do, they only run under the shelter of the RE company who will run for cover as soon as there is any trouble.

[Nice]

Follow the thread linked to. "Bindi & co" are the REINZ.

A problem with internal self-regulation is that the 'disciplinary' groups are from the same industry and subliminally know that the positions each side is in may be one day reversed.

The whole of the legitimate PM business in NZ is clamoring for regulation in the hope that it will remove some of the cowboys. As already stated though, this is not the ultimate answer; the REINZ theoretically already provides this, but it does not stop their so called members 'taking the money and running' !

[Perry]

What sources do you rely on to make the assertion, "The whole of the legitimate PM business in NZ is clamouring for regulation in the hope that it will remove some of the cowboys."

Or is that mostly supposition on your part?

[Nice]

What sources do you rely on to make the assertion, "The whole of the legitimate PM business in NZ is clamouring for regulation in the hope that it will remove some of the cowboys."

Or is that mostly supposition on your part?

Unlike your assertion of "Bindi and co. want to be empire builders - nothing more." I have had a fair amount of industry involvement in the past decade or so . . .

• Member of IPMA
• Committee member of IPMA
• Member of PROMINZ (that took over from IPMA)
• Watched and listened to REINZ moves in the industrry
• Committee member of PROMINZ
• Met with Phil Twyford when Minister of Housing
• Member of RPMA

So somewhat involved in the independent aspect of the industry, and watched the rest of it. Not really supposition at all, but call it what you will. Am I wrong ?

[McDuck]

The whole of the legitimate PM business in NZ is clamoring for regulation in the hope that it will remove some of the cowboys. As already stated though, this is not the ultimate answer; the REINZ theoretically already provides this, but it does not stop their so called members 'taking the money and running' !

You seem to have a pretty good insight as to the general mood of the groups you are associated with.

However, I'm a bit wary of any group suggesting regulation.
Often, while such regulation is sold as a way to give some sort of "benefit to the public",
in realty it's just a way for that group to "clip the ticket" (on any licensing process) and to "exclude completion" from taking a cut of the action.

My examples are that parking meters never made more parking available, and amalgamation never improved traffic jams.
Both did manage to give cushy jobs to the inept and pushed extra costs (for vanity projects) on the the average punter.

[Perry]

My opinion / assertions about Bindi & co have a significant number of referenced items with them, from / over an extended period.

I.e. I draw reasonable conclusions from those independently reported items. I can’t rely on any ‘industry involvement’ because I self-manage my rentals.