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The New Zealand Parliament has officially passed the Residential Tenancies (Prohibiting Letting Fees) Amendment Bill – officially banning tenants from being charged letting fees when moving into a new property, effective on the 12th of December, 2018.
Almost half of rental property listings include letting fees. These fees are generally worth one week’s rent plus GST and are collected by landlords and listing agents at the beginning of tenancy, significantly adding to the upfront costs of moving to a new rental property.
Housing Minister Phil Twyford said that the new law could put up to $47 million back into the pockets of Kiwi families each year.
"This will make a real difference to struggling families,” says Twyford in a statement reported by Newshub. “There are significant costs associated with moving to a new rental property, which many families are now forced to do every year.
"When moving into a new rental property, tenants can face up to four weeks' bond, two weeks' rent in advance and one weeks' rent as a letting fee in addition to moving costs.”
The letting fee ban has been changed just in time for summer when tenants are most likely to move on and find other housing situations.
"This is going to make a big difference for those looking for a new home during the peak house hunting season this summer. This Bill is part of the Government's changes to make life better for renters," Twyford said.
Furthermore, this will make it easier for aspiring home buyers to save money while renting so they can afford a new home.
If you’re thinking of buying a new home or investing in residential property, reach out to Team MZ – the North Shore real estate experts. Call the team today at 021 880 106 or visit the website at https://www.teammz.co.nz/ for more information.