Property Managers Face Fines Over QR Codes Instead of Rent Prices

Property managers are facing significant fines for using QR codes on rental signs instead of explicitly stating the rent price, a practice deemed non-compliant with the Residential Tenancies Act. This has sparked debate within the industry about the interpretation of "stating the rent" and the practicality of current regulations in a fluctuating rental market.

• Property managers are being fined for displaying QR codes on rental signs instead of the actual rent price.
• The Tenancy Compliance Investigation Team (TCIT) is enforcing the Residential Tenancies Act requirement to state rent in advertisements.
• Industry professionals argue that QR codes offer a more practical and adaptable solution, especially with rapidly changing rental prices.
• Concerns are raised about the interpretation of "stating the rent" and whether a sign should be considered a standalone advertisement.

Property Brokers, a property management company, was initially fined $2000 (later revised to $1000) for displaying a QR code on a rental property sign. General manager David Faulkner explained that the QR code directed potential tenants to a website where the rent price was clearly displayed. This practice was implemented to comply with regulations aimed at preventing rent bidding, where landlords artificially inflate prices by soliciting higher offers from tenants.

However, the Tenancy Compliance Investigation Team (TCIT) ruled that the sign itself must explicitly state the rental amount, not just provide a link to the information. Faulkner argued that this interpretation is impractical, especially when rental prices need frequent adjustments due to market fluctuations. He highlighted the logistical challenges and environmental impact of physically changing signs, contrasting it with the ease of updating prices online via a QR code.

Faulkner suggested that complaints often originate from competing property management companies rather than tenants. He believes the current enforcement represents government overreach, diverting the TCIT’s focus from ensuring homes are warm, dry, and compliant to policing minor signage issues. He also noted that New Zealand’s strict stance on rental pricing signage appears unique globally.

Sarina Gibbon, director of Tenancy Advisory, echoed these sentiments, particularly in the current market where rents are declining. She proposed that using a QR code or website address on a physical sign would be a more "fit for purpose" solution, aligning with the rule’s intent to prevent tenant gouging without creating undue stress for property managers already managing numerous compliance tasks.

Gibbon hopes for clearer guidance from the Ministry of Housing and Urban Development, suggesting that a sign should be viewed as an extension of a broader advertisement, like those on platforms such as Trade Me, rather than a standalone piece of advertising that must contain all details.

The Ministry of Housing and Urban Development acknowledged awareness of cases involving QR codes and links in advertising and the ongoing discussion surrounding the issue. While there are currently no plans to amend the legislation, the ministry indicated that it could be considered in a future review.

• Property managers fined for relying on QR code, RNZ.