From 12 December 2018 tenants can no longer be charged a letting fee. The legislation banning letting fees was passed in late October.
Many tenants paid their landlord a letting fee of a week’s rent plus GST at the beginning of their tenancy. These letting fees cover the costs of the landlord’s letting agent or lawyer in setting up the tenancy.
Whilst tenants will be pleased with this change, landlords have given the news a lukewarm response saying that the letting fee ban may lead to rent rises.