It would be smug of us to say that 'we told you so' but what the hell - we told you so. Abolishing tenant letting fees WILL result in rents increasing and who is it that pays rent... the tenant. A number of the larger Property Management companies have announced that they will be passing letting costs on to landlords now that the Government have banned Property Managers from being able to charge tenants a letting fee (effective from 12 December 2018). The companies say that they need to cover the time involved in letting a property to new tenants. Already, in our view, we are seeing this impact on rents, by pushing them higher across the country - something we predicted when the idea of abolishing letting fees was first muted. This is in response to landlords pre-empting an increase in their costs from their Property Management company or Property Managers getting off the mark quickly and advising their landlords of an increase. By way of example Quinovic who are a major player in Property Management have announced they will be charging their landlords a tenancy fee which will be a flat rate of $550 plus GST. Here at Propertyscouts we are taking a cautious 'steady as it goes' approach and working out how we can best deal with the situation.
Landlords to bear letting fee costs National Propertyscouts
Growing numbers of property managers are announcing that they will have to pass the loss of tenant letting fees on to Landlords