shanemattMemberDecember 21, 2010 at 8:09 amPost count: 49
Is it normal for a property manager to charge a weeks rent when re signing the existing tenants to a new 12 month lease??? I understand paying a weeks rent when finding new tenantsScott No MatesMemberDecember 21, 2010 at 9:41 amPost count: 3721
yes. Some DO charge as it is ‘over & above’ collecting rent , administration of maintenance & paying outgoings. There is a negotiation & lease preparation as well.I am opinionated. Take me at face value, read between the lines.shanemattMemberDecember 21, 2010 at 9:46 amPost count: 49
Its $700,thats why I am questioning value for money when it takes very little work to renew a leaseScott No Mates wrote:yes. Some DO charge as it is 'over & above' collecting rent , administration of maintenance & paying outgoings. There is a negotiation & lease preparation as well.lifeXMemberDecember 21, 2010 at 10:52 amPost count: 617
Tell your agent you want an ongoing lease and to not send your tenants harassing letters suggesting that they will be kicked out unless they sign a new 12 month agreement.Live, Learn and Grow LifexperienceshanemattMemberDecember 22, 2010 at 5:24 amPost count: 49
The agency has agreed to waive the weeks rent fee for the renewal and just charge $18- for lease prep.
I am glad they responded to my concernsDan42MemberDecember 22, 2010 at 5:31 amPost count: 615
Wow – $700 down to $18! That's some good negotiating by you.
Lease renewal for the same tenant shouldn't cost a weeks rent, because there is hardly any work in it. For a new tenant, that's fair enough, but not to extend the lease of the same tenant.Kaz YoungMemberDecember 23, 2010 at 6:14 amPost count: 21
Good on you for questioning it. I recently changed property managers on a couple of different properties in different locations and so did the big phone around and fee comparison across a number of real estate agents and property managers.
A few things that I learned from my experiences:
- It is definately worthwhile to shop around as there are differences in the the fee structures in terms of what they charge you for as well as the amounts.
- Everything is negotiable, so if you're not happy with a specific fee or charge, speak up.
- Speak to someone who can make decisions. Often the junior person will tell you the fees but has no ability to negotiate with you so it may be worth speaking to someone more senior.
I think the fee to find a new tenant is justified but the fee to sign a new lease for an existing tenant is a crock I think!
Another thing to watch for where I was overcharged – one property management company was sending me duplicate statements and charging me for them, despite me bringing it to their attention – never did get the money back, but I did change managers!
KazKaren Young - Buyers Agent Brisbane and Queensland www.propertyzest.com.au | m: 0448 111 387 www.everydaypropertyinvesting.comBelinda at homeParticipantFebruary 9, 2011 at 1:28 amPost count: 2
no – for all new tenants a definite plus GST – but not a renewal – but there are a lot of bottom feeders out there. other charges could include a lease prep fee. I would change agents…that is just rude.Belinda@homePaulDobsonMemberFebruary 9, 2011 at 12:12 pmPost count: 1148
Not that anyone's mentioned it but it's worth noting that, since 31 Jan in NSW, it is no longer permitted to charge the tenant a lease preparation fee.
Cheers, PaulPaul Dobson - Vendor Financier - http://www.negative2positive.com.au Ph: 0447 973 235 - http://www.jvpropertypartners.com.au http://www.vendorfinanceinstitute.com.auAndrew_AParticipantFebruary 10, 2011 at 1:05 pmPost count: 372
This might be of interest. It's a standard enough charge these days.
Lease Renewal Fee – I cannot believe there are still a lot of departments not charging this fee. To sign an existing tenant to a new fixed term agreement, we see departments charging anywhere from as little as $25 right up to 1.1 weeks rent. It is common that the lease renewal fee represents half that of the letting fee.
- Top 15 fees charged in Australia. Leased MagazineAllen Real Estate Buyers' Agent - Brisbane www.allenrealestate.com.au 1300 443 581DerekMemberFebruary 10, 2011 at 1:19 pmPost count: 3495
Fees & conditions are negotiable despite some agents suggesting otherwise.Derek New Perth JV project coming - high profits & rent returns http://bit.ly/15h2HQF W: www.eosproperty.com.au E: email@example.com T: 1300 558 114michaelandre70MemberFebruary 10, 2011 at 4:10 pmPost count: 34
good bargain from $700 to only $18.
are the lease fees always a percentage of the rent or are there companies who charges a fixed amount no matter what the rent is?Western NY propertiesshanemattMemberFebruary 10, 2011 at 9:18 pmPost count: 49michaelandre70 wrote:good bargain from $700 to only $18.
are the lease fees always a percentage of the rent or are there companies who charges a fixed amount no matter what the rent is?
The $700 represented one weeks rent.
You wouldn't believe it,but after all this the tenants decided to move out.All worked out well as we had 25 groups through the open inspection to rent and someone offered tenty five dollars more than the asking price to secure it at $750.XeniaMemberFebruary 17, 2011 at 10:20 amPost count: 1165
To answer your question, it is more normal to charge than not to charge. I run a property management agency and mostly do not like lease renewal or letting fees. I like to negotiate one up front fee with clients that's both transparent and fair.Professional Bio www.xeniaioannou.comDafnnyMemberFebruary 27, 2011 at 11:31 amPost count: 18
Lease renewal fees are normally disclosed in your managing agency agreement, they should have run through all costs. I also run a property management business and do not charge a renewal fee.De Dona Property Management Website: www.dedonapropertymanagement.com.au Email:firstname.lastname@example.org
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