The Residential Tenancies Act Reform Survey: Results

We have had over 300 responses to our RTA Reform survey. Thank you to all who took time out to complete the survey. The result showed that the majority of people surveyed want the 90-day no-cause to remain whilst the Property Management industry should be regulated.

Approximately 50 landlords and over 250 Property Management employees took the survey.

Unsurprisingly, the vast majority of people surveyed want the 90-day no-cause to remain. Out of the small group that did say no, 85% of them worked in the Property Management industry.

Over 75% believe that tenants names should appear on Tribunal orders, even when they make the claim. 10% of Property Managers believe that tenants have the right to remain anonymous when the tenant claims.

This was split with no obvious majority. This question always creates a lot of debate. Of the 25% who are not sure, one can suspect that they will be ok but under a strict criteria.

This was very interesting to see. Over 60% of people who completed the survey believe that exemplary damages do need to increase. 63% of Property Managers believe they need to increase.

Again, another question that split opinion. There was no difference in the voting between landlords and Property Managers.

Tenancy Tribunal could become very busy with the introduction of the 90-day no-cause terminations. We believe it needs a lot of work to modernise, but what did you think? Well, only 3.5% believe that it works fine. Most of you are split between it works ok but needs modifying or it needs a lot of work. 11% believes it needs a massive overhaul and it is completely broken.

Onto regulation. Overall, the vast majority want to see the industry regulated. This is a similar story between landlord and Property Manager.

And when it comes to Property Managers, they overwhelmingly believe that landlords should undertake some basic training if they are to self manage. Just under 50% of landlords believe that this is a good idea.

COMMENTS BY PARTICIPANTS

Over 100 of you told us what you thought about the reforms and naturally, many were not happy. In particular, the 90-day no-cause was hotly disputed and commented on. Some landlords are saying that they are going to sell up. Only time will tell if that will be the case.

READ OUR COMMENTS FROM THE SURVEY

Thanks to everyone who participated in the survey.


The 'cannibalisation' of our industry

An open letter to the New Zealand Property Management Industry

Does this type of service benefit the industry in New Zealand?

 

Surely we are better than this? Maybe I am being naive, a bit too precious and even a little hypocritical, but do we really need to resort to these type of tactics as an industry to survive? Many years ago when I started in Property Management, I mystery shopped our competitors to get an understanding as to how the industry worked and who we competed with. It is part and parcel of what goes on and for someone new, it was a great way to learn. However, when I saw a post on LinkedIn by one of Australia's largest Property Management personalities offering a 'Mystery shop your competition service', it caught my attention. Paying a third party to do this takes things to a different level.  I couldn't help but think that at best it is very aggressive and at worst utterly unethical. I questioned myself as to whether such a service should ever be offered. After getting feedback from some of New Zealand's industry leaders it appears I am not on my own.

One high profile business leader stated to me the following.

"With all honesty, I think it lacks integrity. And, further fuels the cannibalisation of each other’s businesses vs. working to convince the wider NZ market of self-managed landlords. Disappointing."

Two weeks ago, we hosted a Conflict and Negotiation workshop in Wellington. In the room were three high profile Wellington Property Management companies. Throughout the day, we had them teamed up and working together, looking at ways to alleviate the pressures on Property Managers. The feedback was wonderful and the day was fun for all. Would that have been possible if these companies found out that they had been spied on by each other? Such tactics are the cause of immediate distrust between companies and sours relations when we should be collectively learning and supporting each other.

From my point of view, if you have to resort to such tactics, then you've already lost and your business never really had a soul. I am a great fan of Simon Sinek and his brilliant book 'Start With Why' sums up what being in business should be about. Yes, it is vital that you are profitable and we all want to make money. However, in my opinion, purely making money should not be motivation for starting a business. I suspect that most successful business owners are the same.

Is being a business owner easy? Absolutely not and I know that many may be tempted to resort to such underhand tactics. However, you have to understand your purpose as to why you exist and focus on being brilliant at what you do. To do this, you need to measure client satisfaction, learn from this feedback and constantly improve your customer experience. At the heart of any successful business are the people who work in it. If you are a business owner or a Department Manager, your team must be the number one priority, not corporate espionage of your competitors business. Ask yourself this, would I want to work for someone who would happily pay for a third party to spy on my competitors? What message does that send to your team and what does it say about your culture and values?

If Real iQ had to offer such as service to make money, I would close the doors and get a job. This is not what growing our industry should look like.

David Faulkner
Director Real iQ