APIA Blog

RSS Feed

What is 'reasonable' post-letting fee?

Wednesday, December 12, 2018

 

So, no more letting fees as of today. 

Our expectation is that most landlords will bear the cost of letting. That said, there are still other costs relating to the assignment of a tenancy that the amendment has stayed silent on. 

 

Tenancy Services has put out a statement advising that "landlords and agents can still recover expenses reasonably incurred from a tenant if they wish to assign, sublet, or part with possession of their rental homes."

We drill down to find out exactly what this statement means by asking Katrina O'Connor, Barfoot & Thompson Property Management Customer Experience Manager to clarify that would be a 'reasonable expense' in these circumstances: 

"Interesting question: When considering the reasonable expenses in a break lease situation we would suggest you consider all of your costs - The obvious ones include Trademe.co.nz ($179.00) and credit checks ($10-15 each) for example or a letting & marketing fee if you are paying for the services of a letting agent, but if you are self-managing your property what about the less obvious costs such as the time spent completing a change of tenant inspection, final water reading costs ($25) time spent reference checking, preparing documentation, viewing attendance etc.

Barfoot & Thompson is advising tenants who wish to break a fixed term lease that the cost of doing this is $700+GST (with full cost breakdown).

 

It has yet to be "tested" at Tenancy Tribunal as to what is deemed to be "reasonable", however reasonable and cheap should not be confused as meaning the same thing."

Note that Katrina's comment relates to changes to an existing tenancy rather than the granting of a new tenancy. 

Do you have any tenancy related questions? Write to us at admin@apia.org.nz or hit us up on our social channels here and here

 

Recent Posts


Tags

short-term rental wins beginner investor insurance LIM subdivision financial advisers act Guest blog HHS TCIT robert kiyosaki minor dwelling wealth creation property Kris Pedersen Mortgages and Insurance Market report Investor story parry v inglis water bill Landlording scotney williams trust CCC ocr rent letting auckland Must know heating legal p lab renovation rental market gluckman report principal and interest HSWA How to rta reform television inspection house prices reserve bank ring-fencing Holler government equity rta debt enforcement cat buyer's agent nzpif warm up new zealand positive cash flow investment strategy banking investor income HHGA trespass personal growth holiday house skill shortage anz Property (Relationships) Act Investment tip rental wof asbestos capital gain property management tenant meth contamination return productivity unitary plan tax Q&A Jeff Bezos Editor's Choice finance buying rules lvr speculator development structure initio housing affordability partners maintenance Standards New Zealand mortgage CoreLogic sale and purchase bond sublease watercare Sponsored post cgt ird education rent arrears tenancy issues airbnb election 2017 property cycle building DTI bond form management Must knows property maintenance letting fee interest only tenancy tribunal privacy interest rates insulation market rent landlord ask an expert Question and answer business worksafe winz negotiation advice buying tenancy services first home buying sale and purchas trademe bad tenant cash-flow relationship auckland council off the plan property value market boarding house warren buffett housing bubble

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Keith Hay Homes logo Maintain To Profit logo The Insulation Warehouse logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited