July 9th 2018
Did You Know
Submission's are being heard in Wellington at the select committee hearing's over the issue of letting fees which property managers charge tenants for signing them up to a tenancy agreement.This practice is now banned in all other like minded countries,it is seen as a fee that should be paid for by landlords.
One of the submission's warned that property managers could become creative and charge costs,when letting fees are banned [break lease fees - pet bonds-administration fees ].
It is good that creative fees are getting some oxygen and that the select committee will legislate to prevent these from becoming law.All that should be required is the present 2 weeks rent and up to 4 weeks bond no other fees,the fees are another cost to the tenant on top of the 6 weeks in advance.
Policy Paul Barber [ New Zealand Council of Christian Social Services ] made some pertinent points.
Disproportionate cost of letting fees on vulnerable tenants. Half of the New Zealand population, more than 2 million people are renters.Most people living in poverty were renters,very few of the wealthiest and high income earners are renters.Two thirds of people of Pacific ethnicity rent Maori also figure high in the rental league tables,while less than a third of European ethnicity rent.
7 out 10 children live in poverty in rental housing and they are likely to spend most of their lives in rental accommodation.
Most tenants are more likely to move around seeking affordable and decent accommodation and these moves make the tenants incur more costs with letting fees.The banning of these fees has been long over due and the facts above can testify for the need to abolish letting fees.
It is now the time to end the social apartheid that has become mainstream in a country that once prided itself on being an egalitarian society.Lets help make New Zealand a great place to call home,my place.
