Evil Property Managers – how was a problem created!!!!!
Morning Duncan and Team
Firstly let me state my biases no doubt Twyford would see them that way
1. 30 years in the Real Estate Industry
2. 25 year in Property Management on the front line
3. Principal of a large agency now – all be it just sold half
4. 14 years Police before the 30 in RE – means I am a principal led sort of fellow who sees a rule as a rule – i.e. you stick to the rules whether a Landlord – Property Manager Agent – Tenant. Not a popular creed to live by these days.
Some background and fault laying for the present unlicensed property manager position we now find ourselves in. Labour were told this would happen and ignored it. I go back to 2006/2007 and a Labour lead (they were in Government then facing and upcoming election) government closing out 9 years – they needed votes and we have just seen what bribes they will offer to try and get votes ask the student votes ($1 Billion on free tertiary education).
Anyway back to that period – a nasty bully of an PM by the name of Clayton Gosgrove though there was votes in attacking and re- regulation the Real estate Industry. This was all his idea of course it would sort out the ‘land sharks’ his words. When in fact the industry had been wanting the 1976 Act redesigned and update for years – and of course at that stage there were far more important issues so Labour had it on the back burner – until it suited 18 months out from Hellen trying to get another term.
Anyway (2x) – Clayton brings on the review with his mind thoroughly made up already – we do the consultation with all sides of the issue but just like Phil T his mind was set he does what he wants.
Anyway (3x) – In the 1976 Real estate Act Property Managers had to be licensed and had to hold and operation a trust account to hold the tenants and landlords funds. This had to be audited each year by an external auditor to be sure funds were being treated property. Examples – rent put correctly to the tenants account, bonds forwarded to the bond centre, landlords paid their correct moneys owed etc.
Anyway (4x) – Clayton bullied and pushed through his re-regulation of the Real Estate Industry in a hurry (votes were needed and he did not have much time – he was going to sort the land sharks) resulting in the establishment of the REAA then now the REA. Oh but sorry he did not care about tenants and landlords and left that part of the industry out creating the unlicensed shambles we now have. Everybody is now calling themselves Property managers – operating from holes in the wall, cars or garages at home (okay I exaggerate a little) but hopefully you get the point – it was Claytons mistake that gives use the problem today of rogue PM’s.
Anyway (5x) – even though I am not required to operate a Trust account I do – just had in audited at a cost of $5k – I would estimate 30 – 40% of the industry does this voluntarily. The rest treat it as a normal bank account – and may use it every day for cash flow. Often when the month end comes – the funds are not there. Usually the landlords is paid because he has an idea of what is due to him but how do we cover the shortfall – well simple we don’t pay the bond centre. They have no way of knowing what has been rented and hence to misappropriation starts.
Anyway (6x) – I have raved on enough lots more could be said – but please take from this it was Labour that largely created the problem that they now seem to want to take it on as if they are the saviors of the poor old tenants who never does anything wrong of course.
Cheers Duncan and Team enjoy your show as you look at both sides of the story – give then hell Greig Metcalfe