Aredwood: Among the changes that Labour is proposing to tenancy laws. One of them is making the charging of letting fees to tenants illegal. I fully agree with this change, as currently property managers have an incentive to keep on changing tenants each year, as they make more in letting fees by doing so instead of letting the same tenant stay for ages.
The letting fee has to go for that reason but also because it's a barrier to people moving from sub-par accommodation.
I wonder how are the RE agents going to get around that. It's primarily their pay when the property is advertised through them. I personally cannot imagine few hundred dollars would be worth it considering how stressful and time consuming is to look for new tenants (for me as landlord). Surely means a lot more work for the managers to change the tenants as well?
Letting fees are a bit of a legal black hole is some ways. As renters its not like we are paying the agency for a service. They represent the landlord and charge the land lord. To charge rentors is a conflict of interest or double dipping. What exactly am I paying $500 for? Letting me see the house? That's on behalf of the land lord. Legal paperwork - conflict of interest as they represent the landlord.
I detest letting fees. It would be more sensible to charge the landlord all the fees. They will then recover them via rentals.
If I have to pay one, I see myself as a customer of the agency. They work for me too and accordingly I expect a level of service. It's a lever to pull as/when required.
I have to say the rental agency that we deal with as tenants are good. Any issues have been promptly dealt with. We have a good relationship with our property manager. Much easier than dealing with an individual landlord.
I DO pay letting fees as a landlord.
The company I use, I use to find tenants only, he is very good at weeding out the problem ones. What does he do for the tenant, we he takes the time to take the tenant through the house, the lazy ones just hand out the key to pretty much anyone who asks. I have tried advertising myself, I have wasted multiple hours waiting for prospective tenants who never turn up, or who have outright lied about their previous tenancy.
If the landlord is expected to recover those fees, it will be calculated over a 12 month period because so many tenants only stay 12 months. Thing is the rent will not drop, so the Tennant will pay another letting fee, then another, then another....over all costing them MUCH more.
Now I have had one lot of tenants in a house for 5 years and I have not increased their rent. Why should I, the are looking after the property, I dont have a clean up to do after a tenant has moved out, I have no advertising or letting fees. However if they move out, the rent will go up to market rates.
I have also had other tenants who live like pigs and I have had to go to the tribunal to get rent arrears back as well as cover the damage.
Now if the government wants to make things tougher for landlords, then I hope they make things tougher for tenants, ie the government guarantees their debts and recovers it though IRD/WINZ, or perhaps we get a WOF for tenants.
Why am I a landlord.
I don't understand the sharemarket , and it seems to me the small investor is used to offset problems for the large investor etc
I don't have to pay massive "fees" to a fund manager, no matter how badly they do.
I am in control , I understand property ownership, I can do the maintenance