PHOTO: SUPPLIED
Two years back, Zac Snelling embarked on a mission to delve into the challenges plaguing property management in New Zealand.
He unveiled the reasons behind nearly 70 percent of landlords in New Zealand opting to handle their investment properties independently.
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As the head of property management at Ray White New Zealand, his investigation uncovered the spectrum of issues within the field.
“Ray White New Zealand stands as one of the largest property management service providers, overseeing a weekly rent collection surpassing $7 million nationwide,” he remarked. “Despite this extensive portfolio, a significant majority of landlords in New Zealand choose self-management, leaving both landlords and tenants devoid of professional assistance to ensure compliance and fulfillment of obligations.”
Zac described this exploration as one of his most arduous yet fulfilling endeavors in his 17-year tenure in the industry.
“I scrutinized the industry’s challenges and devised practical solutions for our network to pursue,” he noted.
He highlighted the absence of regulations or mandatory qualifications for property managers in New Zealand.
“While major real estate entities may offer training and support for property managers, there exists no legal mandate enforcing a minimum standard,” he lamented. “We shoulder the responsibility for safeguarding considerable assets in both human and property aspects, yet there are no regulations acknowledging this vital responsibility.”
Amidst the ongoing discourse on rental regulations, with the government’s Property Management Regulation Bill looming, Ray White New Zealand took the proactive step of self-regulation.
“Recognizing the imperative for industry-wide betterment in New Zealand and the enhancement of quality of life for tenants, landlords, and property managers alike, action was indispensable,” Zac emphasized.
Over the past two years, Zac spearheaded a comprehensive three-pronged strategy aimed at elevating the property management sector collectively.
Key facets of the initiative include:
- Education Standards: Ensuring all property managers attain the highest qualifications (NZQA Level 4) and possess comprehensive knowledge of legal frameworks and processes.
- Financial Security: Implementing dedicated client fund accounts, independent financial reviews, and public indemnity insurance to safeguard stakeholders and assets.
- Customer Choice: Introducing industry-exclusive products empowering landlords to tailor services according to their needs, including routine inspections, rent management, and arrears support.
“We refused to wait for governmental regulation and instead took proactive measures to deliver the caliber of service our clients deserve,” Zac affirmed.
To disseminate information and foster community engagement, Ray White New Zealand has organized 50 events throughout May to update landlords on ongoing changes and educate them on the significance of these developments.
Zac emphasized the importance of addressing perception issues and underscored the company’s commitment to proactive initiatives, aiming to set a precedent for the broader industry.
“Through our actions, we aim to demonstrate our sincerity to customers and inspire other businesses to follow suit,” he expressed. “Our overarching goal is to catalyze industry-wide improvement, thereby positively impacting more landlords and tenants in the long run.”
“I’ve witnessed concerning narratives in the media regarding substandard housing and questionable landlord-tenant interactions,” Zac reflected. “It’s my personal mission to showcase our efforts in transforming the industry, one management at a time.”