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  • TomW
    Opinionated
    • Jun 2010
    • 167
    #1

    Letting fee legal?

    Hi,
    Does anyone know (and provide references) in regards to lettings fee's.

    Can landlords charge a letting fee (or just property managers etc)

    If the landlord is the property manager (either a person or company) then can they still charge a letting fee?

    Thanks in advance
    Tags: None
    • Judy001
      Freshie
      • May 2013
      • 29
      #2
      Hi there, my understanding for letting fees is that only property managers can charge these.

        Comment

        • Keys
          Fanatical
          • Nov 2006
          • 6062
          #3
          Anybody who "holds himself or herself out to the public as ready to act" can charge a letting fee.
          https://www.propertytalk.com/forum/i...ilies/lock.gif

            Comment

            • props4u
              Opinionated
              • Apr 2009
              • 194
              #4
              And for those who are not GST registered, NOT charging GST on said letting fee, does NOT make it improper or illegal either
              Derived from "Turbid" ..... akin to toxic Carbide(s) .... by adding "e" to "Turbid", we then have,
              Turbide(s) = new alternative word for Scumbag(s) .. Thankfully, humanity's minority -               May 2012

                Comment

                • BigDreamer
                  Fanatical
                  • Aug 2009
                  • 1080
                  #5
                  Originally posted by Keys View Post
                  Anybody who "holds himself or herself out to the public as ready to act" can charge a letting fee.
                  Really? I remember calling DBH asking the very question about if I, a landlord, who will be managing the property could ask for a letting fee from potential new tenants and they said no (??).

                  I understand that given I am not GST registered I should not be charging for GST but from my understanding just asking for a letting fee was a no-no if you were not a property management company.
                  www.PropertyMinder.co.nz
                  # Property Management
                  # Ad Hoc Tenancy Services / Rental Inspections / Terminations and Notices

                    Comment

                    • props4u
                      Opinionated
                      • Apr 2009
                      • 194
                      #6
                      Originally posted by BigDreamer View Post
                      I understand that given I am not GST registered I should not be charging for GST but from my understanding just asking for a letting fee was a no-no if you were not a property management company.
                      It doesnt have to be "only" a property management company that may manages properties ... There's no law saying that only a property management company can manage properties ... There's no law preventing, say a partnership or a sole trader from managing properties ... There's no law preventing you from engaging "anyone of your choice" as your "agent" ... This could be your neighbour, colleague or relo like cousin, brother, sis or son ... Finally, as such and even if they were fully employed, there's no law preventing such from acting as agents on your behalf ... They are entitled to charge letting fee and recoup say, at minimum, advertising fee
                      Derived from "Turbid" ..... akin to toxic Carbide(s) .... by adding "e" to "Turbid", we then have,
                      Turbide(s) = new alternative word for Scumbag(s) .. Thankfully, humanity's minority -                       May 2012

                        Comment

                        • Keys
                          Fanatical
                          • Nov 2006
                          • 6062
                          #7
                          Originally posted by BigDreamer View Post
                          Really? I remember calling DBH asking the very question about if I, a landlord, who will be managing the property could ask for a letting fee from potential new tenants and they said no (??).
                          Work with me on this one.

                          The way the law is written.

                          If you personally own one rental property at $350 per week you can charge a letting fee ($350) provided you comply.

                          Go to Trade Me and advertise your services. $39 for 90 days so roughly $160 per year.

                          Yearly turnover of tenants sees you ahead.

                          Tenants change every two years and you're still ahead.

                          Charge potential clients a rate of 12-15% and you'll get none.

                          You comply with the law and therefore can charge the fee.
                          https://www.propertytalk.com/forum/i...ilies/lock.gif

                            Comment

                            • Propertytrader
                              Forum Junkie
                              • Sep 2014
                              • 270
                              #8
                              Oh i learnt something today, i have been managing my properties myself and never thought about charging a letting fee,but of course most agents do it.

                              I guess if they agents charge fees, they provide a free service for the landlords, as otherwise they will be overcharging the tenants,thanks

                                Comment

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