PHOTO: BRADEN FASTIER/STUFF Tenants will no longer be charged a fee for signing up to a new tenancy.

Government claims that a letting fee ban will not lead to higher rents are short-sighted, one economist says.

As of Wednesday, property managers can no longer charge tenants a letting fee – which has usually been equal to a week’s rent, plus GST, when they sign up for a new property.

Instead, some are now charging a “new tenancy fee” to landlords when a property is rented. Quinovic charges $550 plus GST.

Others have increased the weekly commission they charge.

READ MORE VIA STUFF

 

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