New rules target property managers

Local housing authorities plan to launch a system on September 1 to evaluate property management companies and their managers in an effort to make the industry more accountable, local media reported Sunday.

The system aims to give the Shanghai Municipal Housing Support and Building Administration Bureau a means to better evaluate and punish property management companies for poor service or bad business practices.

Almost all residential communities in the city have a company that takes care of the communal aspects of the property. Their duties typically include overseeing security, cleaning the hallways and making sure the elevators don't break down. However, property owners have frequently clashed with their management companies over service issues. "There are many disputes and lawsuits about property management nowadays," said Lian Yanjie, a real estate lawyer with the Shanghai Xinhua Law Firm.

The evaluation system serves as a platform to collect complaints about property management companies that bureau staff can then investigate. If the complaint turns out to be true, the bureau will punish the firm by giving it one or more demerit points in the system, according to a report in Shanghai Youth Daily.

Once a company receives 18 points, the bureau can revoke its certification, making it illegal for the company to manage properties in the city. Individual property managers can also receive points through the system, which can end up on his or her employee record, according to the report.

The system is part of a series of new regulations that the Shanghai Municipal Housing Support and Building Administration Bureau has created to standardize operations and make the industry more accountable.

The system will allow the public to check information, including demerit points, about any property management firm operating in the city.

Unrealized service promises and underhanded competition continue to prevent serious improvement to the industry, said Li Bin, vice manager of Changcheng Property Group, East-China Division. "We have great expectations that the new rules will help regulate the performance of all property management companies and managers," Li said.