Property managers getting around letting fee ban by charging a new 'tenants fee'

Drive 14/11/2018

Quinovic will introduce a new 'tenancy fee' as a replacement for the letting fees that have been banned by the Government.

Property managers typically charge tenants one week's rent when they take up a new rental, a charge that Housing Minister Phil Twyford has said costs Kiwis millions every year.

In October, the Government announced it would abolish letting fees through an Amendment Bill which would prevent landlords from directly passing the cost of a letting fee onto tenants, reducing the new tenancy's upfront cost.

The ban comes into effect on December 12, right in the middle of what's considered the busiest time of year for tenancy change overs.

To gauge landlords thoughts on this RadioLIVE Drive's Ryan Bridge speaks with Andrew King from New Zealand Property Investors Association.

Listen to the full interview with Andrew King above.

Drive with Ryan Bridge , 3pm - 6pm Weekdays and streaming live on 'rova' channel 9 - available on Android and iPhone.