Categorized | Residential

The call for stricter rules for handling rent

The call for stricter rules for handling rent
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A call has been made to tighten the rules and regulations binding real estate managers and how rental money is handled. This call has been made by the Real Estate institute in the wake of the unexpected closure of Jericho Residential Property Management, a property management firm based in Wellington.

Though the circumstances surrounding the closure of the firm are unknown, the institute said in cases where landlords were owed before the closure of a property management firm, there should be a way of getting the money back to the landlords. The institute further expressed surprise at the categories of property managers; some were licensed whiles others were not. This means that, the rules and regulations in the market are so relaxed.

While some of the members are licensed have remained in good standing over the years, other property managers are not members of the association of property managers. This gives room for them to operate fraudulent deals without being detected.

The institute suggested that, since property managers collect rent and rates from tenants of behalf of property owners and therefore, the moneys they collect belong to the landlords. These moneys should be lodged in a fund that can allow the landlords to access them even if the property management firm is no longer in existent.

Additionally, regulations should require all property managers to be licensed and unlicensed ones operate under the supervision of the latter. All property managers should also be required to be registered and also renew their registration annually.

 

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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