Sorry, How Much?!
Can somebody please explain the ‘letting fee’ to me?
My wife and I are renters.
A few years ago we sold our home and moved on from Dunedin. A career step for the wife took us up the coast of the South Island to Kaikoura.
A stepping stone move for Wifey and a change of pace for me. A good one, as it turned out. We found an open and welcoming community, good schooling for the kids and a beautiful spot, complete with mountain and ocean vistas. So enamoured were we with life in Kaikoura, we brought another person into the world to share it with us.
The E-Bomb was born in Kaikoura, another home birth. This time, in the second rental property we lived in while we were living and working in that little slice of rugged paradise. Her place of birth, a house we sourced through some of Wifey’s colleagues, was a sort of house sitting situation. The place was on the market and we knew it could sell out from under us at any moment. It did, a handful of months after moving in.
Prior to that we had a lovely older place we found online through an agency.
Despite many of the horror stories out there about rental agencies, we had nothing but a good experience with Harcourts in Kaikoura. We made initial contact online, then via the phone, full of questions and concerns as we were taking the place sight unseen. The property manager went above and beyond, sending a ton of photos through and assuring us the place would be a good fit for us. It was.
Not to say there were no problems. There were leaks and other issues. But with an attentive, communicative property manager and an approachable landlord, nothing was ever a problem.
Life moved on and we did too. Waikato, a little rural spot called Te Mata not far from the equally beautiful seaside town of Raglan, this time on the West Coast of the North Island. Another career move for Wifey and finally, a step towards the type of climate my home town of Dunedin just cannot provide.
This time we dealt with an agent who did nothing more than vet us and show us the property. From there on we were in the hands of the landlord, a bloody good bugger in the old school Kiwi way.
The first time around we paid a letting fee. The property manager earned it we felt, as it seemed like she as very much in it for us, the tenant, as she was for the landlord, her client.
A few years later and we are set to be on the move again. In those intervening years it seems all the rhetoric around the rental market might be spot on. It seems tight, to say the least, with very few options around even close to suitable. So, with pressure on, the agents/landlords hold all the cards, meaning the likes of myself and Wifey and our crew, are left having to jump through hoops to even get a sniff of a look in.
A myriad of questions to be answered and boxes ticked, much of the information sought bordering on an invasion of privacy, all in triplicate and all done before you are even allowed to view a property!
Why does an agent need to know the names of our kids? Why do I need to provide multiple personal references, when we have written references from previous landlords? Why is our income all that relevant? I could earn a million dollars a month and spend $1,000,001.01 per month.
How about worrying about our ability to pay the rent, when we don’t!
No need to worry, any prospective landlords out there wanting to house our little nucleic family…we’ll pay.
I get that the agent is trying to protect the interests of their client. Understandable, just doing their job and all that. But, there lies the key point. Their client.
A rental agency is engaged by and works for, the landlord. Generally, they will take a percentage of the rent charged. They do the grunt work on behalf of said landlord, ensuring the property is maintained, tenanted, that the rent is paid and the place is looked after.
How come Wifey and I find ourselves doing all the grunting and groaning when searching for somewhere to live, only to end up paying a fee for the privilege?
One weeks rent plus G.S.T, which will work out as a cost of around $550-$600, with nothing to show for it except our own leg-work, our own persistence and perseverance and our own commitment to the process.
Because we need a roof over our heads!
Yes the letting fee is apparently set to be a thing of the past by the middle of next month. Yet, all adverts still state a fee is required, even if a property is not available until later in the month or beyond. I guess the idea is to get you signed asap, thus earning the fee, before handing the key.
Oh well, can’t waste any more time here, I have a home to find. That’s right, a home, not just a house.