Watch: Wellington rental agency that wanted $1400 to alter tenancy backs down

A rental agency featured on TVNZ's Seven Sharp last night over its exorbitant "admin fee" for rental properties has decided to change its policy.

A group of Wellington students were given a hefty $1400 bill after they informed rental agency Oxygen that two tenants were leaving, and two others were moving in.

"Our contract states that we can't have anybody subletting so instead of just bringing two people in and letting them pay their portion of the lease we put them on the tenancy agreement," flatmate Finn Carroll said.

An email response from Oxygen read in part: "To add a new tenant to a tenancy requires a lot more work and inevitably a letting fee will need to be paid (1 week rent + GST)."

The students' letting fee has since been dropped to $250.

Property managers Oxygen say the "admin fee" is justified due to the work needed in adding tenants to an agreement. Source: Seven Sharp