Big players like Bayleys and Quinovic are named in a new report as the property managers with the mouldiest, coldest and dampest homes.
Findings of the Aotearoa Renters Survey, co-authored by Renters United and Action Station, are igniting calls for firmer regulation of property managers.
But most realtors told RNZ they actually agreed with stricter regulation - stricter than the "light-touch" approach the government has proposed.
Realtors with cold homes
The report said more than 40 per cent of people who were told their homes met Healthy Homes standards still experienced issues with mould, dampness, or drafts.
A Healthy Homes advisor on the Kāpiti Coast, Jessica Keltie, said she had seen property managers let "quite revolting" home issues slide.
"I know somebody who is a single mum with three high-needs children... Her house, the bathroom literally folded up around her because it was so damp and disgusting."
The report found more than half of those living in Bayleys, Quinovic, Barfoot & Thompson and Crockers homes had experienced issues with mould, coldness and draughts. Of the more than 3000 renters who took the survey, about 500 named their property manager.
In Keltie's experience, many agents were unaware of their obligations under the Healthy Homes standards and Residential Tenancies Act.
She was one of many advocates calling for property managers to be regulated, as well as an independent system for Healthy Homes certification.
The report proposed creating a rental warrant of fitness, awarded from an accredited source.
In March, the government announced proposals to develop a "light touch" approach to regulate property managers, including a register and separate disciplinary tribunal.
The proposed bill - which is still in the drafting stage - would not change realtors' and landlords' ability to self-certify for Healthy Homes.
President of Renters United, Luke Somervell, said property managers were "rogue operators".
"There's no regulation. There's no register. There's no oversight or any ways to pull property managers up for dodgy practices."
The report also recommended a Healthy Homes hotline, where renters could call up when they believed their home was not up to standard.
"If we can raise the bar, then the people who are doing the right thing will benefit," Somervell said. "And the people who are the crooks and the cowboys, they will get pushed out of the market."
With laws like no-cause evictions starting, Somervell said it was renters' turn for legislation that gave them power.
Of the respondents, 25 percent said they had experienced discrimination from a landlord or property manager, often focused on family status or beneficiaries.
"Renters are feeling scared. They feel that the power balance is totally tipped in favour of landlords and property managers," Somervell said.
RNZ approached all 10 realtors mentioned in the report, and a majority said they would support regulation in some form.
Quinovic chief executive Parrish Wong said he was disappointed to see the findings about his company, which ranked second-worst behind Bayleys.
"We take any suggestion that a property managed by Quinovic may not be compliant seriously."
A room in a Wellington rental property advertised by Quinovic for $200 in 2022. Vic deals/ Facebook
Quinovic was one of multiple companies that already used an independent Healthy Homes certifier, which Wong said should be enforced.
"We're not experts, we're not builders, we look after properties. So you want to get an expert in there.
"Clear standards and accountability across the sector are good for tenants, property owners, private landlords and professional property managers."
Multiple realtors said they cut ties with landlords who refused to meet standards when the final Healthy Home deadline came into effect last year.
Property Brokers was one of them, saying it scrapped the management of 168 properties where owners were not willing to do the work needed.
A spokesperson said Property Brokers would want to see regulation focused on the performance of a property, rather than simply complying with a checklist.
The spokesperson said the standards of Healthy Homes can be open to interpretation. Instead, they'd like to see policy move towards a property performance model.
The United Kingdom introduced something similar, called Energy Performance Certificates (EPCs), where homes are assessed on measurable performance outcomes rather than solely on prescribed criteria.
Companies like Ray White and Harcourts said they invested in extra education for property managers, in light of a lack of regulation.
Several businesses said they were members of the Real Estate Institute of New Zealand (REINZ), which had advocated for higher professional standards and regulation.
The proposed bill would require property managers and/organisations to be publicly registered, and meet minimum standards of things like education and conduct.
It would also establish a formal complaints and disciplinary process, and require client funds to be held separately from operational funds.
Tama Potaka. Alyse Wright
This wasn't the first time legislation has tried to pass on the topic, with a complete scrapping of a similar bill in 2024.
The bill was still being drafted, and would not be finished before the end of this government's term. It will likely be up to the next government to make a change.
"These changes have been informed by discussions with landlords and tenant advocates, and industry bodies for the sector, and this feedback has helped shape a balanced approach that responds to sector needs while keeping regulatory costs low," Associate Minister of Housing Tama Potaka said.
However, private landlords would not need to register under the bill. Both advocates and some realtors disagreed with this, saying that all landlords should be included in the regulation.
Potaka said landlords were already regulated under the Residential Tenancies Act 1986.
The bill didn't include changes to Healthy Home certification. Potaka said tenants could take a case to the Tenancy Tribunal if they believed their home was not up to standard.
-RNZ