Letting fee refund

Our Experts Answer:

A letting fee covers the cost of putting a tenancy in place. This can include covering the cost and time involved for the letting agent for holding open homes, reviewing applications from prospective tenants, preparing tenancy agreements and conducting the initial property inspection. Letting fees can vary, but are normally one week’s rent plus GST. The tenancy agreement must state whether there is a letting fee. 

If the tenant signs or agrees to the tenancy, they must pay the letting fee. If a tenant is offered a tenancy by a landlord, pays a letting fee and then the property is no longer available, then the letting fee should be refunded. However, if a tenant signs a tenancy agreement and then for whatever reason changes their mind, they may not be entitled to a refund of the letting fee.

For more on the rights and responsibilities of landlords and tenants, go to www.tenancy.govt.nz or subscribe to our e-newsletter Tenancy Matters at www.tenancy.govt.nz/subscribe.