No Letting Fee!
From the 12th of December 2018, we are not allowed, by law, to charge a letting fee to tenants. Letting fees have traditionally been collected from the incoming tenant to help cover the costs of advertising, marketing, the time and travel costs involved in conducting viewings, credit and tenancy tribunal checks, reviewing multiple applications, background checks, bond receipting and lodging, marketing the property, and photos.
So what has CHARTA done to manage this legislative change?
How do we cover these costs now?
We've been watching the market and believe we've come up with a solution that will work for everyone.
As a valued client of Charta, you may be aware that unlike other Property Management companies we DON'T charge for quarterly inspections, we DON'T charge an annual marketing fee and we also DON'T charge for attending the Tenancy Tribunal disputes or mediation's. These additional costs were offset by the letting fee which we now are prohibited from charging to tenants.
So to maintain high levels of service we will be adding a small percentage to our annual administration fee, please refer to your owners newsletter for details or contact us directly. We will not be implementing this until the 1st of February 2019.
Either way, we would be proposing a small increase in the rent to compensate owners for this additional cost but please be aware that we can only work with what the market allows.
More information about the prohibition of letting fees can be found on the Parliament website here: https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_77655/residential-tenancies-prohibiting-letting-fees-amendment