Property managers fined for relying on QR code

A New Zealand property management firm has been fined for using a QR code instead of displaying a rent amount on a physical “for rent” sign, reigniting debate around how rigidly tenancy advertising laws should be enforced in a rapidly shifting rental market.

Property Brokers general manager for property management David Faulkner confirmed the company was investigated by the Tenancy Compliance Investigation Team after signage at one of its rental properties failed to state a rent price. Instead, the sign featured a QR code directing prospective tenants to the full listing online where the rent was clearly displayed.

Under the Residential Tenancies Act, landlords and agents must not advertise or offer a tenancy without stating the rent. The law was originally designed to prevent rent bidding, a practice where landlords or agents encourage tenants to offer higher amounts to secure a property. Faulkner said the principle behind the rule made sense and supported transparency to prevent bidding practices.

Where the dispute has arisen, he said, is the interpretation that the physical sign itself must contain the rent figure, rather than allowing access to that information through a linked digital listing.

Property Brokers’ approach used QR codes to direct tenants to the full online advertisement, where all property details including rent were clearly set out. Applications were already required to be completed through the company’s website.

Faulkner said complaints were often driven by competing property management companies rather than by tenants themselves. He said there had been widespread industry debate about how the rule was being enforced, with many agencies choosing to ignore the issue, while others actively reported competitors to tenancy compliance.

He said the requirement placed unnecessary operational strain on agencies, particularly in geographically spread regions. When rental prices change, which is occurring more frequently as rents soften in some areas, staff are required to physically travel to update signage.

There is a direct financial cost, a time cost, and an environmental cost, he said.

He added that using QR codes allows price adjustments to be made instantly online while still providing full transparency to tenants.

Faulkner also noted that some tenants prefer not to have the rent for their home publicly displayed to neighbours.

Property Brokers was initially issued a $2,000 fine, which was later reduced to $1,000. In correspondence sent to the Ministry of Housing and Urban Development, Faulkner described the enforcement as regulatory overreach that provided no tangible benefit to tenants.

He argued that the Tenancy Compliance Investigation Team was established to ensure landlords meet obligations around warm, dry, and compliant homes, not to police what he described as minor and unworkable signage issues.

He also stated that to his knowledge, New Zealand is alone in enforcing such a strict interpretation of physical rental pricing signage.

Tenancy Advisory director Sarina Gibbon said the rental market had shifted significantly since the original concerns around rent bidding. She said in some areas rents are being reduced weekly as landlords compete to secure tenants.

In that environment, she said, it is unrealistic to expect physical signs to be constantly updated. She argued that QR codes or website addresses on signs would better align with the original intent of the rule, which is to prevent tenants being gouged.

Gibbon said the compliance burden on property managers was already heavy and these interpretations added further operational stress. She said she remained hopeful that constructive discussions could be held with the Ministry to clarify how the word state should be interpreted in the context of advertising.

She said if a sign is treated as an extension of an online listing, such as a Trade Me advertisement, it would be a more reasonable and practical approach.

No physical sign, she said, contains the full depth of information that appears online, and expecting it to do so is unrealistic.

The Ministry of Housing and Urban Development confirmed it is aware that QR codes and links are being used in rental advertising and that discussion is ongoing.

While there are currently no plans to amend the legislation, the Ministry said the issue could be considered in a future review.