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  • Avatar of shanemattshanematt
    Member
    @shanematt
    Post count: 70

    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 tenants

    Avatar of Scott No MatesScott No Mates
    Participant
    @Scott-No-Mates
    Post count: 3,786

    yes. Some DO charge as it is ‘over & above’ collecting rent , administration of maintenance & paying outgoings. There is a negotiation & lease preparation as well.

    Avatar of shanemattshanematt
    Member
    @shanematt
    Post count: 70

    Its $700,thats why I am questioning value for money when it takes very little work to renew a lease

    Scott 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.
    Avatar of lifeXlifeX
    Member
    @lifeX
    Post count: 651

    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.

    Avatar of shanemattshanematt
    Member
    @shanematt
    Post count: 70

    Good news!

    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 concerns

    Avatar of Dan42Dan42
    Member
    @Dan42
    Post count: 620

    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.

    Avatar of Kaz YoungKaz Young
    Member
    @Kaz-Young
    Post count: 25

    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!

    Kaz

    Avatar of Belinda at homeBelinda at home
    Participant
    @Belinda-at-home
    Post 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.

    Avatar of PaulDobsonPaulDobson
    Participant
    @PaulDobson
    Post count: 1,179

    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,  Paul

    Avatar of Andrew_AAndrew_A
    Participant
    @Andrew_A
    Post count: 392

    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 Magazine

    Avatar of DerekDerek
    Member
    @Derek
    Post count: 3,544

    Fees & conditions are negotiable despite some agents suggesting otherwise.

    Avatar of michaelandre70michaelandre70
    Member
    @michaelandre70
    Post 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?

    Avatar of shanemattshanematt
    Member
    @shanematt
    Post count: 70
    michaelandre70 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.

    Avatar of XeniaXenia
    Member
    @Xenia
    Post count: 1,231

    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.

    Avatar of DafnnyDafnny
    Member
    @Dafnny
    Post 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.

    Avatar of crustycrusty
    Participant
    @crusty
    Post count: 127

    None of my PMs charge a lease renewal fee for exsisting tenants, and if they tried to I would be getting a new PM.

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