Letting Go Of Letting Fees - What We Know So Far About The Law Change
From December 12 2018 it will be unlawful for a property manager to charge a tenant a letting fee. This comes after the Residential Tenancies (Prohibiting Letting Fees) Amendment Bill was given royal assent and became an act. At Rentals.co, we’re responding by removing all clauses and fields about letting fees from our application forms from December 11. Everyone who’s applied for a tenancy with us until that date has been charged a letting fee to recognise the hard work we do, putting roofs over the heads of trustworthy tenants.
Who will now pay for the administration time it takes to match the right tenants to a property?
We aim to have our new policy firmly set from the start of 2019. There will eventually be small increases in rent to cover the costs of letting services (A letting fee has always been around one week's rent + GST). This small increase will be the equivalent of a letting fee, spread out over a year, and likely around $8 per week per property.
Will everyone’s costs go up right away?
No - the new law applies to tenancy agreements created after December 12 2018.
What if we need legal advice before a tenant is granted a rental?
The services of solicitors or letting agents can't be charged for as a letting fee.