Letting Fees in NZ: Who Pays, What They Cover, and How Much (2026)

A letting fee in New Zealand is the one-off charge a property manager bills when they find and sign a new tenant. It is separate from the ongoing management percentage, and it is the single most misunderstood cost in residential property management.

Who pays the letting fee in NZ?

In New Zealand, the landlord pays the letting fee, never the tenant. This has been the law since 12 December 2018, when the Residential Tenancies Amendment Act 2018 made it illegal to charge a tenant a letting fee as a condition of signing a tenancy.

Before December 2018 it was legal (and routine) to charge a tenant one week rent plus GST just to move in. That is now banned. If you are a tenant and a property manager is asking you for a letting fee, that is unlawful and you can raise it with Tenancy Services.

How much is a letting fee in 2026?

Typical letting fees charged to landlords by NZ property managers in 2026:

• 1 week rent + GST for a standard re-let on an existing managed property.
• 1.5 to 2 weeks rent + GST when the manager takes on the property from scratch and has to photograph, list, run viewings, screen applicants, and prepare the tenancy agreement.
• Flat $500-$800 + GST at some boutique firms regardless of the rent level.

On a $600/week property, a one-week letting fee is $600 + GST = $690. On a $900/week property it is $1,035.

What does a letting fee cover?

A legitimate letting fee in NZ covers the labour and expenses involved in finding a new tenant. Specifically:

1. Advertising - writing the listing, professional photos (if included), posting on TradeMe ($140) and Realestate.co.nz ($99).
2. Viewings - scheduling and attending open homes, handling enquiries, following up with interested applicants.
3. Application processing - collecting applications, running reference checks with previous landlords, credit checks via Centrix or Equifax, income verification.
4. Tenancy agreement - preparing the written tenancy agreement, explaining it to the tenant, getting it signed.
5. Bond lodgement - collecting the bond, lodging it with Tenancy Services within the 23 working-day deadline.
6. Move-in - handover of keys, initial inspection with photos, reading meters.

A property manager who does all of this properly is doing roughly 8-12 hours of work per letting. At $120/hour that is $960-$1,440 of labour, which is why the fee sits where it does.

Are letting fees charged on tenancy renewals?

It depends on the property management contract, and this is where landlords often get stung. Some managers charge a renewal fee (typically $50-$150) when a fixed-term tenancy rolls over into a new fixed term. Others charge a full letting fee again on every renewal, which is aggressive and negotiable.

Before you sign a management agreement, ask: "Do you charge the full letting fee on a tenant renewal, or only on a new tenant?" A fair answer is "only on a new tenant, with a smaller renewal admin fee on fixed-term rollovers".

Is a letting fee tax-deductible for landlords?

Yes. Letting fees paid to a property manager are a standard deductible expense against rental income in your IR3R / IR10. Keep the invoice. RentManager NZ tags letting fees automatically if you import bank transactions or expense receipts.

What if I self-manage?

If you find and sign your own tenants, there is no letting fee - but you still carry the costs it was meant to cover: your own time, the TradeMe listing, any credit checks you run, and the paperwork for the tenancy agreement.

A practical way to think about it: if you self-manage and your own time is worth $50-$100/hour, a letting cycle takes you 6-10 hours, so you are saving about $300-$1,000 per letting compared to paying a PM one week rent.

Can a landlord ask a tenant to "reimburse" a letting fee?

No. Trying to disguise a letting fee as "application fee", "move-in fee", "admin fee", "key fee", or anything similar is unlawful under s 17 of the Residential Tenancies Act. The only upfront charges a NZ landlord can lawfully require are rent in advance (up to 2 weeks for weekly rent, 1 month for monthly) and the bond (up to 4 weeks rent).

Summary: the numbers to remember

• Paid by: landlord only, never tenant (since 12 Dec 2018).
• Typical amount: 1 to 2 weeks rent + GST.
• What it covers: advertising, viewings, screening, agreement, bond lodgement, move-in.
• Deductible: yes.
• Charged on renewals: usually no, or a smaller fee; check your contract.

For the full picture of what PM fees add up to across a year see how much NZ property managers charge.