Types of costs for assignment, subletting or ending a tenancy early

Landlords can require tenants to pay the actual and reasonable costs incurred due to agreeing to assignment, subletting or ending a tenancy early. Depending on the specific situation, this may include costs such as:

• advertising for new tenants
• completing credit checks for new tenants
• labour costs - e.g. the landlord's time to check references, complete the required paperwork or undertake the final inspection, or the property manager's fees for their time for these activities
• the rent lost until a new tenant is found

The following costs cannot be included by landlords as costs due to assignment, subletting or ending a tenancy early, and cannot be included in assistance paid to meet the costs of assignment, subletting or ending a tenancy early:

• blanket fees for assignment, subletting or ending a tenancy early (i.e. set fees that do not correspond to actual and reasonable costs incurred by the landlord)
• costs that are not directly related to assignment, subletting or ending a tenancy early, such as cleaning costs, rent arrears, costs to repair damages to the property

Other assistance may be available for costs at the end of a tenancy that cannot be included as costs due to assignment, subletting or ending a tenancy early. For example, if the client qualifies and the costs relate to the bond for a new tenancy, it may be paid as a Housing Support Product, Bond Grant.

If a tenant thinks the costs they are being asked to meet are not reasonable, they may choose to discuss this with their landlord and/or dispute the amount through the Tenancy Tribunal under the Residential Tenancies Act 1986.

Note if a client disputes the amount the landlord is charging, they may qualify for assistance to meet the costs of lodging the dispute with the Tenancy Tribunal.

If you are unsure if a cost can be included, contact Helpline to discuss the circumstances and the specific cost before deciding whether to grant the assistance.