While letting fees are to be banned from next month, Quinovic has announced a 'tenancy fee' of $550 to be paid by the landlord. Photo / Getty Images

'Tenancy fees' replacing banned letting fees

Author: Newstalk ZB,
Publish Date: Thu, 15 Nov 2018, 7:11AM

There are fears a new kind of letting fee will still hit tenants in the pocket.

While letting fees are to be banned from next month, Quinovic has announced a 'tenancy fee' of $550 to be paid by the landlord.

Property Institute chief executive Ashley Church told Kate Hawkesby in past, the fee was charged to the tenant, but in banning them the government's said if anyone's charged, it should be the primary beneficiary.

"If you're going to do it you actually need to levy against the person who benefits most from it and look there is actually some degree of validity to that argument."

Church said in some cases, the costs will be passed on in the form of higher rent.

LISTEN ABOVE AS ASHLEY CHURCH SPEAKS WITH KATE HAWKESBY