Residential Tenancy Letting Fee Change
No letting fees for tenants. Active from 12 December 2018.
The Residential Tenancies (Prohibiting Letting Fees) Amendment has now been passed to remove letting fees for tenants who rent homes. This means that from 12 December 2018, tenants cannot be charged letting fees.
Letting fees are paid by the tenant at the beginning of a tenancy to the property manager.
These are normally the equivalent of one week’s rent (plus GST). This amount is to cover the tasks involved in letting out your property, which requires many hours of work. These costs usually cover the following:
- Travel to the property prior to letting.
- Taking photos and placing advertising.
- Ensuring all lights are working, all maintenance issues have been addressed the property is spotlessly clean for the incoming tenant, lawns are mowed gardens are weeded. Any issues regarding damage prior to leasing is recorded.
- Travel to the property viewings (1-2 time a week)
- Processing applications to lease.
- Assessing tenants, checking work references and previous letting history
- Signing up a tenancy agreement
- Collecting bonds and lodging bonds.
- Ensuring rent payments are by automatic bank deposit.
- Returning to the property to let the tenant in and issuing keys.
- Carrying out ‘pre-tenancy inspection with tenant – recording this in writing.
As a result, the new legislation means that Parkit Property Management has had to take a significant cut in their income whilst still doing the work. Most property managers across the country will be passing this fee onto the property owners, but here at Parkit Property Management we will be offering a marketing package and will wear the letting fees to our clients when they sign a new 12-month management agreement.
This package includes:
- Promotion of your property on social media
- TradeMe Advertising paid and taken care of
- Letting fees absorbed by Parkit Property Management
Parkit Property Management pride itself on the care and effort they take to find you the right tenants as we know that a good tenant means a good return on your investment. That’s why we have curated these packages so that you don’t have to feel the effects of the legislation change and feel confident that because the legislation has changed that the Parkit Property Management promise won’t.
- This will take effect from 1 January 2019
- To qualify for the package you must sign up to a NEW 12-month management agreement with Parkit
If you have any queries or would like to discuss this, please contact us on 027 481 2726
Let us help you to make the most out of your investment