TENANTS WARNING

      

            The Manawatu Tenants Union has concerns about the use of a Pre- Occupation Fee being charged by Property management companies.It is now a refundable fee,where previously it was charged as a an administration fee.The Manawatu Tenants Union is of the opinion that the fee was Key Money,which is prohibited under clause 17 of the RTA.

Clause 18a of the RTA states that a landlord may not require a  tenant to provide the landlord with  any form of security to secure any payment or performance arising out of,or in connection, with the tenancy.

However a landlord could charge a Pre- Occupation Fee,as long as the total of all money collected,as bond,did not exceed the equivalent of 4 weeks bond and it was lodged with the bond office. 

The MTU is collecting information on this practice and we are interested in speaking with tenants about their experience's concerning  add on fee's.You can contact us on 06 3577435 and leave a message if there is no one to answer the phone or call into the Community House King Street Palmerston North.