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Letting fee on existing tanent and agent claims no knowledge of bond

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  • Letting fee on existing tanent and agent claims no knowledge of bond

    A friend of mine leasing the same place for over 6 years, new agent took over saying that he has to resign the new lease agreement. Agent advised a $59.00 letting fee.

    Can they charged a letting fee on existing tenant?

    There were $520.00 bond at Housing Department against the property done when the property was occupied 6 years ago. Agent claims they have no knowledge of it. Even after he sent the agent an email advising the bond ID, the bond information has my friend's name and his previous property management agency name on it. What do you reckon my friend should do in this situation?

    He contacted his previous agent, so far no reply.

  • #2
    Firstly, your friend should NOT have to sign a new lease. There ought to be a paper trail (as per the requirements of the Residential Tenancies Act 1986) documenting the change of landlord/agent.

    Secondly, get your friend to call the bond centre and enquire after the bond. From memory, the number is 0800737666.

    Paul.

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    • #3
      Quite right. The agent is exactly that: An agent. Of who? The landlord. If the original agent signed the tenancy agreement on behalf of the landlord, then there is a contract between the landlord and the tenant. If the agent subsequently resigns, the tenancy contract is not affected, in any way.

      Given that your friend has the bond ID number, he/she should find that it is still held by Tenancy Services.

      I would suggest that your friend writes a letter to the agent and that a copy is also sent directly to the landlord. As for the content of the letter, something like: "Will pay the $59 and sign a new agreement if I have to, but can you explain why I have to? Paid a letting fee 6 years ago and signed a tenancy agreement. Has this agreement been cancelled? Could you explain the situation?"

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      • #4
        A different question for your "friend" to ask.

        In writing.

        Please supply me with an update rental summary.

        www.3888444.co.nz
        Facebook Page

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        • #5
          sunds like a bit of a con to me. If there is a new letting fee then the LL should pay - after all it isn't the Tenant who asked for the change.

          Comment


          • #6
            Thanks for the replies, I've discussed with my friend and look over with your reply. There are more detail he didn't say.

            Edit: Forgot to mention, he doesn't know the real name of the current landlord. They were chinese couple but he thinks the landlord may be the wife.

            He has asked the current agent that since the lease ends soon, end of August, and he hasn't looked for any place else, why not wait till then. The agent agreed. So the letting fee is for signing a new lease agreement, same person same property same landlord different property management agency.

            His current lease is expiring at the end of August, so he has to resign a new lease for another period of 1 year (current agent said they can ask landlord if he/she will be interested in 6 month term but the agent made it quite clear that they are not, in the tone of her voice.). So that's the resign is about (I wish he told me earlier). But it puzzle him and me about letting fee on an existing tenant.

            During his 6 odd years at this property he went through landlord changing hands three times and seven property management agencies. He has this current agent before and had not heard of letting fee on an existing tenant. Or signing new lease for another period is ... new occupant? He asked about this letting fee to the agent, presented her with one of the old lease document (2007) from the same agency (just different agent), there's nothing about letting fee on that lease. The agent said it's always been there since she works with this agency over five years ago. With the old document on the table, the agent put on a hostility mode. She said "We will advertise". Hang on, the lease has not ended yet. Can't we asking question this day? It's not like he is asking to stay for free.

            Now his rent is going to go up as well ... the letter from the agent stated: NO change in the rental property market however the agent advise landlord to raise the rent by $10 more per week. Although it said in the letter that await Landlord's confirmation. Correct me if I'm wrong please, $10 more per week - who won't want it!

            Being in the same place for a-6-year period moving isn't going to be easy, and he hasn't started looking yet end of the month is approaching. He felt that he has no choice.

            Well ... in my opinion, for someone to be able to stay at the same rental property for over 6 years, he/she must be a very good tenant. Why good tenant being treated this way, I wonder?

            And with the bond, the current agent shows no interest in signing bond transfer. Should he just ask Housing Department to release it now?

            Please let me know what you think, and reckon his option may be? I'd like to cheer him up a bit ...

            Thank you.
            Last edited by Pimmy; 05-08-2009, 12:32 PM.

            Comment


            • #7
              Can you confirm that he was on a fixed term tenancy?

              If he has been there for 6 years, was the the fixed term tenancy extended in the past, or was a new tenancy agreement written up each time?

              The reason why I ask, is fixed term tenancies turn into period tenancies at the end of the term, unless the landlord is proactive about it.

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