Propertyscouts Christchurch

Banning of Letting Fees - 23rd Mar 2018

Christchurch

Housing Minister Phil Twyford has tabled a bill that would ban landlords from charging the letting fees to tenants.

He was previously considering doing this as part of a wider overhaul of the renting system, but has decided to do it as a stand-alone bill instead.

Landlords can currently charge new tenants for letting the property to them, nominally to cover fees they have paid letting agents. There is no maximum.

"Letting fees are an unjustifiable tax on renters" Twyford said, describing them as a method of "gouging renters".

"I don't know of any other area of the law where two parties can contract for a provision of services but then charge a third party."

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