Hey there
Just bought a place, spoke to the agent today about managment (same 1 who sold it to me), seeing as the original owners are wanting to stay on and rent back to me. wen i was talking to the gal answering the fone (not the property manager, who was out) she said that she was gonna charge a weeks rent as a finders fee… now i hav been charged this fee before, but i would hav thought that in this case seeing as they did NIL work in finding the tenant, then the fee is unjustified in this case…
she is gonna call me bak monday or tue.. would like some info if this is the norm ???
what u think???
thanx! Jason
TeacherK6,
I wouldn’t think that if they were ethical that they could charge you that fee…..
I would be trying to stress to them that you will be purchasing additional properties and if they would like to continue this alliance then the fee should be waived.
I don’t think any of us would mind paying a finders fee if you know they did a fair days work for it…….but to just charge it because they can…….to me is unethical.
Congratulations on your purchase and good luck with your furture purchases.[
]Regards,
Milkman
Hi there,
No way, they shouldn’t be charging you a finders fee for an existing tenant. Also as you’ve purchased through them you may well be able to negotiate a discount on the management fee.
Rod.
Better than one quote I recd. 9% of total rental contract (ie 52 weeks @ 190pw x 9%) plus 11-16% of weekly rental.
Polar Bear,
Man.[
]………..that would turn a +ve gearded property into a -ve geared one.[xx(]Considering the cost, it may be better to manage them ourselves until the portfolio gets too large. But then we may have some leverage with Property Managers….[
]Regards,
Milkman.
Hi Jason,
We have a contract in place that specifies that if a new tenant is found 1 weeks rent is to be paid by us for the cost associated with finding a tenant. For re-signing of a lease by the same tenant, this costs us half a weeks rent. We tried to negotiate this down but the property manager wouldn’t negotiate on that part, but we managed to get rid of or downgrade some other costs instead.
I would speak to them about this and say that since they are only re-signing an existing tenant that you believe the cost is less to them and hence you should be paying less for that service.
Worth a try!
As the agents introduced you to the vendor and subsequently the tenant they can probably argue their case.
Not saying I agree.
Perhaps you need to let them know you are speaking to another PM and see if this changes their tune.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Cheers
Thanx guys / Gals….
Ill try a few of ur ideas… after all they r not the only agent in town lol
Jason
]………..that would turn a +ve gearded property into a -ve geared one.[xx(]
]
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