A prediction others will follow suit, after a property management company quickly replaces letting fees.

While letting fees will be banned from December 12, Quinovic has announced a 'tenancy fee' of $550 to replace them, to be paid by the landlord.

Real Estate Institute CEO Bindi Norwell told Mike Hosking it's likely others will join them.

"They [property managers] have been thinking about this for a while now, how they are going to recover this cost and so this is probably a logical place for it to fit."

She said this may mean landlords pass the costs on through rent.

"There's still a service involved, that cost needs to be passed on probably to landlords."

"Landlords may choose to absorb the cost or pay it on, and if you think about it, they're still running a business so they may choose to pass it on as increased rent, so actually renters will still have to pay it just over time."

She said she understands why the Government banned letting fees but it doesn't take away the cost.

"Originally they were trying to decrease the upfront cost for renters. It's a very expensive time, you've got a bond, you've got moving costs, understand completely why they're doing this, however, there is still a service involved and still a cost."

She said it's possible landlords who manage their own properties will absorb the cost but we will have to wait and see.

LISTEN ABOVE AS BINDI NORWELL SPEAKS WITH MIKE HOSKING