Viewport width =
May 21, 2018 | by  | in News |
Share on FacebookShare on Google+Pin on PinterestTweet about this on Twitter

Taking On Letting Fees

VUWSA is currently rallying behind the Residential Tenancies (Prohibiting Letting Fees) Amendment Bill, which was introduced by Housing Minister Phil Twyford on 22 March 2018. VUWSA is running an online crowdsourced submission box on their website; all contributions will be added to a collective VUWSA submission to the Select Committee dealing with the proposed Bill.

“Letting fees are an unjustifiable tax on renters,” said Twyford as he announced the Bill.

VUWSA President Marlon Drake said “The impact of letting fees on our students means a lack of mobility, and a loss of money which could be better spent… they do more harm than good”.

Under the Residential Tenancies Act 1986, solicitors or letting agents are able to charge “letting fees” to assign a tenancy. A letting fee is extra money that people pay for the property managers’ time spent holding open homes, interviewing tenants, and preparing tenancy agreements. The fee is normally one week’s rent plus GST, and cannot be charged to renewing leases.

Massey University research has shown letting fees to increase inequity. This is because higher-income tenants can afford to selectively choose properties that don’t have letting fees, whereas lower-income tenants tend to move more which would result in them paying more letting fees.

Some commentators have speculated that banning letting fees will cause rents to rise. However, when Scotland banned letting fees in 2012, only two percent of landlords increased rent as a result of the letting fee ban, according to a survey.

If you want your opinion to be heard, make a submission at the VUWSA website

Share on FacebookShare on Google+Pin on PinterestTweet about this on Twitter

About the Author ()

Add Comment

You must be logged in to post a comment.

Recent posts

  1. In NZ.
  2. The Party Line ~ Issue 04
  3. Mental Health Wānanga Celebrates Work, Looks to the Future
  4. Sustainability on Salamanca: VUW working on environmental impact
  5. Basin Reserve Vigil: Wellington Stands with Mosque Attack Victims
  6. Mosque Terror Attacks: The Government Responds
  7. Issue 04 ~ Peace
  8. Law School Apparently Not Good at Following Rules
  9. Wellington Central Library closed indefinitely
  10. School Climate Strike Draws Thousands

Editor's Pick

In NZ.

: When my mother gave me my name, it was a name she couldn’t pronounce. The harsh accents of the Arabic language eluded the Pākehā tongue. Growing up, I always felt more comfortable introducing myself as she knew me—Mah-dee or Ma-ha-dee—just about anything that made me feel