Legislation to ban letting fees

[north shore]

So in the herald it says Letting fees replaced by tenancy fees and admin fees as property managers look to recoup costs. Thought this one was interesting.

Crockers Property Management said it would introduce an "admin fee" of $20 a month for landlords, which would be charged regardless of whether a tenancy changed or not.

[Perry]

Muddle-Headed Neanderthals

It's the usual stuff-of-politics to read through it all with all one faculties working, rather than have one's brain at half-mast, like Dhil Twitford.

The millions of dollars savings-for-tenants gets hyped, first, by Dhil et al.

Then there's the muted and tacit admission that rents will go up to compensate, so evaporating those much vaunted millions of dollars in savings.

Plus the - oh well, that will spread the cost of the letting fee over the period of the tenancy - and so result in the implicit time-payment of the letting fee and that will still ease the start-up costs for tenants.

Later there's the oh shit, spreading the letting fee cost could well eventually make it dearer for all tenants, even those who do not move that often.

Then - unsurprisingly - it's let's change the subject, shall we . . .

[Wayne]

Lodge in Hamilton are proposing either 1 weeks rent at the start (ie letting fee paid by the LL) or a 1.5% increase in the management fee.
They say 1 week would be a 2% increase if tenancy changed yearly (which it would roughly be) and the 2% is roughly equal to changing tenancy every 2 years.
Tricky decisions but reasonable options.
They also reckon that tenants will have the capacity to absorb a 1.5% to 2% rent rise to compensate.

[Learning]

also reckon that tenants will have the capacity to absorb a 1.5% to 2% rent rise to compensate.

Rounded up to the nearest $10 of course. That makes a nice round figure and no one will notice the extra $3-4 a week on top. Tenants must be loving the Tenant friendly Labour government.

[Don't believe the Hype]

Lodge in Hamilton are proposing either 1 weeks rent at the start (ie letting fee paid by the LL) or a 1.5% increase in the management fee.
They say 1 week would be a 2% increase if tenancy changed yearly (which it would roughly be) and the 2% is roughly equal to changing tenancy every 2 years.
Tricky decisions but reasonable options.
They also reckon that tenants will have the capacity to absorb a 1.5% to 2% rent rise to compensate.

The letter we got from lodge says 1% fee increase. I do wonder the legality of them sending out a blanket recommendation to raise rents by 1.5% - 2% - is that anti competitive or an abuse of market power?

[Wayne]

The letter we got from lodge says 1% fee increase. I do wonder the legality of them sending out a blanket recommendation to raise rents by 1.5% - 2% - is that anti competitive or an abuse of market power?

The email I got said
A. Increasing your management fee by 1.5%
This option is equivalent to a tenancy changing every two years.
Or
B. Being charged the letting fee each time a tenancy changes.
If a tenancy changes annually this option is equivalent to a 2% rise in management fees.

I can't see how a blanket increase could be anti-competitive really.
As for abuse of market power - Lodge are big in Hamilton but not the only player by far.

[DazRaz]

Anti-competitive usually means one large player drops prices lower than others can afford to match.

I think you are concerned about price fixing.

[Don't believe the Hype]

Anti-competitive usually means one large player drops prices lower than others can afford to match.

I think you are concerned about price fixing.

yeah... ...

[Sooz13]

Just received an email from agent giving me one months notice they are charging me a letting fee of $300+GST for existing tenant they are managing. Double dipping I think... have challenged them on that one.

[donna]

I must be missing something - did they not take the letting fee from the tenant at the time they signed the TA and would that not have been before this new legislation? It's not retrospective.

Plus of course for all new tenants = increase in weekly rent rate will include the letting fee.

cheers,

Donna

[artemis]

Just received an email from agent giving me one months notice they are charging me a letting fee of $300+GST for existing tenant they are managing. Double dipping I think... have challenged them on that one.

Did they call it a letting fee? Or something like an admin fee? For example, a fee for paperwork for a new or changed tenancy agreement. (Some changes to a TA can be charged direct to the tenant under the RTA. Might see more of that now, unintended consequence.)

[Wayne]

Did they call it a letting fee? Or something like an admin fee? For example, a fee for paperwork for a new or changed tenancy agreement. (Some changes to a TA can be charged direct to the tenant under the RTA. Might see more of that now, unintended consequence.)

If they didn't have agreement at the time of the let that you'd pay something then they can't add it now.

[artemis]

If they didn't have agreement at the time of the let that you'd pay something then they can't add it now.

Even if it is set out in the RTA? How many tenancy agreements have that clause?

In any case, the landlord can decline to make changes requested by tenants. Unless, for example, the tenants pay the costs.

[Wayne]

Even if it is set out in the RTA? How many tenancy agreements have that clause?

In any case, the landlord can decline to make changes requested by tenants. Unless, for example, the tenants pay the costs.

My comment was in relation to the comment by Sooz13
"Just received an email from agent giving me one months notice they are charging me a letting fee of $300+GST for existing tenant they are managing."
So part of the management fee to the LL and nothing to do with the TA.
My point was - if your agreement with the PM didn't include paying a letting fee they can't then charge you one later.

[Keys]

My point was - if your agreement with the PM didn't include paying a letting fee they can't then charge you one later.

Did the management contract include a clause allowing a change in fees? Mine does. I would be surprised if any contract did not.