Residential Tenancies (Prohibiting Letting Fees) Amendment Act 2018

The Residential Tenancies (Prohibiting Letting Fees) Amendment Act 2018 amends the Residential Tenancies Act 1986 to prevent the charging of letting fees to tenants.

For some tenants letting fees act as a barrier to renting

A letting fee covers the cost of putting a tenancy in place. It covers the cost for time involved by the letting agent for things like:

  • holding open homes
  • reviewing applications from prospective tenants
  • preparing tenancy agreements and conducting the initial property inspection.

Letting fees represented a significant up-front cost to some tenants. They often came on top of other costs — such as bond, rent in advance, and moving costs such as transport. The new law now prohibits any person, including property managers, from requiring a tenant to pay a letting fee, or any other fee, in relation to a tenancy.

Read the Act on the New Zealand Parliament website

Information for tenants and landlords

The Tenancy Services website has more information about letting fees, including your rights and responsibilities, and advice for tenants and landlords. 

Visit the Tenancy Services website

Published: October 13, 2021