The Salvation Army supports this Bill, specifically the prohibition of letting fees or any other fee charged in relation to the grant, extension, variation or renewal of a tenancy agreement.
a. In our experience, letting fees often act as a barrier for those who are looking to rent because of the significant cost of the bond and advance rent which is required when renting a property. This is even more of financial challenge for poorer households, particularly those who have lower incomes but are forced into the private rental market because of social housing shortages, or they are ineligible for this housing.
b. This pressure is compounded by the urgent lack of housing stock in Aotearoa, the rising costs of renting, and the existing housing stock being damp, cold and often inadequate.
c. We acknowledge that there is a possibility that landlords could pass on any loss of income from letting fees into rent increases for tenants. We would challenge landlords and other landlord associations to not undertake this course of action, particularly for vulnerable tenants renting their premises. Additionally, The Salvation Army acknowledges that there are many reasonable, ethical and fair landlords operating in our nation. We believe this Bill will help strengthen the rental sector, and provide assurances that the relationship between landlord and tenant remain just and practical