A question recently came up in our Facebook group from Brian: “I can see on the RTA (section 44A) that landlords can charge for ‘any expenses reasonably incurred,’ but in reality, is this restricted to itemised costs paid to a third party for advertising and credit checks? Can self-managing landlords not charge for the time they spend conducting viewings, assessing applications, doing background checks, etc.?”
The short answer is: correct—but let’s break it down.
What Can You Actually Claim?
Under section 44A of the Residential Tenancies Act (RTA), landlords can be reimbursed for reasonable expenses they’ve actually incurred. These expenses typically include things like TradeMe listing fees, credit checking fees, travel, vehicle costs, and other disbursements, especially when a tenancy ends early in a fixed term.
However, the key here is that the RTA allows for reimbursement of actual out-of-pocket expenses rather than hypothetical charges. This means landlords can only claim costs they’ve paid to someone else, supported by an itemised list of expenses, and not for time they spend doing tasks themselves.
Why Can’t You Charge for Your Own Time?
The reason self-managing landlords usually can’t recover time spent conducting viewings, assessing applications, or doing background checks is straightforward: you can’t contract with yourself to perform a service. Since you can’t create a liability or incur an expense for time spent doing something for yourself, this doesn’t meet the criteria for a reimbursable expense under section 44A.
Even If You Negotiate, It’s Not Enforceable
Even if a self-managing landlord negotiates with the tenant to be paid for their time spent administering an early termination, such an agreement won’t be enforceable. Under section 11 of the RTA, while a landlord can contract...
