*Note that for the purpose of this article we will distinguish ‘letting’ from that of ‘property management’ as understood in the New Zealand context.
From 12th December, letting fees will be ‘abolished’.
By now, you should have received communications from your property manager explaining if and how you will be affected. Many have already advised their
new fee structures to help their landlords plan for upcoming expenses.
Abolishing the letting fee merely shifts the pendulum of liability from the tenant to the landlord. It does not, in and of itself, diminish the commercial
value of a professional letting service. Someone still has to pick up the tab. And from 12th December, that ‘someone’ is the landlord.
On the surface, this is an added cost to the landlord. Naturally, we expect there to be some degree of grumbling and discontent. That said, the good news
is that letting, as a professional service, will now be vetted and regulated by the market. Over time, market competition would see to it that the
good letting agents thrive while the underperforming ones bow out. “From the landlord’s perspective, they are really going to want to see what they
are paying for,” say Huw Evans, Barfoot & Thomspon Property Manager (Ponsonby), “Agencies that provide
good service will have nothing to fear because they can justify the cost. Those owners who do not feel that they are getting valuable service will
soon drop off, change agency or let themselves. From our point of view, 2019 is all about maintaining and exceeding service standards in the property
management and letting industry.”
Professional letting service also allows you to leverage off of your agent’s...
