PHOTO: Tenancy Agreement. Consumer NZ
By December 2019, it will be illegal to charge tenants Letting Fees.
The Residential Tenancies (Prohibiting Letting Fees) Amendment Bill ….. is in full swing and has passed it’s third reading. The Bill is likely to come into effect – December, 2018
This bill amends the Residential Tenancies Act 1986 to prohibit the charging of a letting fee, or any other fee charged to a tenant, in respect of charges for services rendered by a letting agent, solicitor, or any person in relation to a tenancy.
So how will Property Managers – (many whom charge one weeks rent plus GST as a Letting Fee) – react in terms of their service charges?
Points to note:
1/ The income loss is a significant one across the industry – which Tenants currently pay.
2/ If Property Managers – wish to retain that income the only option is:
a) Charge the Landlord the Fee – and lift the rent, so the Landlord gets the fee drip fed back each week
b) Not charge the Landlord – and keep the rent the same “market rent”
c) Or are Property Managers going to go around the side door and perhaps charge a “Service Fee” to Tenants- but surely that is just a Letting Fee in disguise?
All we see is that Helen Clark’s ” Nanny Socialist State” is back in power via an upgraded model – Jacinda Adern, and forcing Government restrictions on Free Market enterprise.
The Result – Rent’s will rise…. which goes against the purpose of the Bill – to restrict costs to Tenants when renting property.
Written by Property Noise Group