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The risks of charging key money

Charging tenants unlawful costs could hit you in the back pocket or even make you the subject of a media story.

Generally, you can only change rent or bond to the tenant.

However, there a few exceptions to the rule.

Under Section 44A, landlords are permitted to charge reasonable expenses associated with tenants assigning, subletting, parting with possession or terminating the tenancy by consent (known as a lease break).

If a landlord does charge any unlawful costs, they can be liable for up to $1500 in exemplary damages or an infringement fee of between $500-$3000.

For those using the eBundle online application and agreement, we have you covered – our technology does not charge the tenant anything that could be considered key money.

So, what kind of costs could be considered prohibited key money? And what safeguards can you put in place to protect your office? Watch the full snippet training in Total Tenancy.

To request a Demo of Total Tenancy CLICK HERE

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