Saturday , May 15 2021

Quinovic introduces new fee after prohibiting fees



Quinovic will introduce a new "rental cost" as compensation for rental fees that have been banned by the government.

Property managers usually take tenants a week's rent when they take out a new rent, a fee as housing minister Phil Twyford has said costing Kiwis million each year.

In October, the government announced that it would abolish rental charges through an amending act that would prevent landlords from directly transferring the cost of a rental fee to tenants, reducing the new rental cost.

The ban enters into force on December 12th, in the middle of what is considered the busiest time of the year for the exchange of condominiums.

In an email to property owners, Quinovic's General Director, Grant Clark, said the ban on allowing fees to have a "significant negative impact" on companies.

"Borrowing charges has historically been charged by a lease and does not cover the insignificant time and cost of finding and placing new tenants," he said.

"Instead of trying to increase our base management fees, we've decided to introduce a new rental fee."

He said that Quinovic would discuss the new fee with property owners before they started looking for new tenants, and the fee would be deducted from the first week's rent of the new rental.

Robert Whitaker from the advocacy group Renters United says the news is not surprising, but it will have real consequences for the tenants in the future.

"It's property owners who are the company's customers, they benefit from the service (not tenants) and therefore they can also challenge the fee if it's unreasonable," he told Newshub.

"When rents rise over the next few months, the rental fee will be used as an excuse – but the real reason is that we do not have enough leases in most of our main centers and real estate companies will take full advantage of" maximizing rental yields "for their customers, the owners.

"That is why we need the government to take the bull through the horns and build more affordable housing and rigid increases to inflation."

Quinovic has been approaching for comment.

In August, Andrew King, head of the Property Investors Federation, told The AM Show that many tenants "ironically like the rental fee" to be willing to pay it gives them an advantage over other potential tenants.

He also claimed to ban the charges would increase the tenant rent by about $ 10 per week.

Newshub.


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