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Residential Tenancies Act 1986

Tenancy agreements - Key money, bonds, and rents

17A: Requiring letting fee prohibited

You could also call this:

“ Tenants cannot be made to pay extra money just for renting a house. ”

You are not allowed to be charged a letting fee by anyone when you rent a place to live. This includes letting agents and other people involved in the rental process. If someone tries to make you pay a letting fee, they are breaking the law.

If you want to assign your tenancy to someone else, sublet the property, or let someone else use the property, the landlord can still charge you for reasonable costs related to giving their permission. This is explained in more detail in section 44A of the law.

If a landlord tries to make you pay a letting fee, they are committing an infringement offence. This means they might have to pay a fine. The amount of the fine is listed in Schedule 1B of the law.

Remember, it’s important to know your rights as a tenant. If someone asks you to pay a letting fee, you can tell them that it’s not allowed by law.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=LMS148340.

Topics:
Housing and property > Renting
Crime and justice > Criminal law
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17: Requiring key money prohibited, or

“You can't be asked to pay extra money to get or keep renting a place, unless the Tenancy Tribunal says it's okay.”

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18: Bonds to be no more than 4 weeks' rent, or

“The landlord can only ask for a bond that's equal to 4 weeks' rent or less.”

Part 2 Tenancy agreements
Key money, bonds, and rents

17ARequiring letting fee prohibited

  1. No letting agent or other person may require a tenant to pay a letting fee.

  2. Nothing in subsection (1) limits or affects section 44A (which entitles a landlord to recover reasonable expenses on consenting to the tenant’s assigning, subletting, or parting with possession of the premises).

  3. Any requirement to pay a letting fee in contravention of subsection (1) is an unlawful act.

  4. A landlord who contravenes subsection (1) commits an infringement offence and is liable to a fine or an infringement fee specified in Schedule 1B.

Notes
  • Section 17A: inserted, on , by section 7 of the Residential Tenancies (Prohibiting Letting Fees) Amendment Act 2018 (2018 No 44).
  • Section 17A(2): amended, on , by section 13(1) of the Residential Tenancies Amendment Act 2020 (2020 No 59).
  • Section 17A(4): inserted, on , by section 13(2) of the Residential Tenancies Amendment Act 2020 (2020 No 59).