Hi Everyone,
Just want to know whether the agents apart from management fee(which is monthly) also charge for annual fee (which is 2 weeks rent) every year when they manage the property.
Is that a common practice that they do?
just want to make sure..
Not common practice from my experience.
They normally charge a week or two for finding a tenant – after that, it's usually just a percentage of rent and some other minor admin charges for postage, ect.
Paying two weeks rent each year is quite a bit.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Not common at all opee. Most they should be taking is one weeks rent at the start of the agreement
Thanks guys for the reply..Much appreciated..
I suspected that…I have lost 2 weeks rental twice like that..basically got ripped off.
when I asked him to manage the property the property was already tenanted. So i wouldn't have been charged anyways at all.
Sometimes you trust ppl and they break ur trust.
ANyways the property manager has been given a flick had enuff of lies and scams.
I can't get any money back from him but a lesson learnt hard way.
There should be a site where you can name and shame individuals / companies that rip you off.
I wish Joe..But atleast I am on the right track now and away from these ppl..
I can claim some of these fee on tax too.. so overall not too bad..
Hi Opee,
Recommend you re-read the property management agreement you had with this company. Their fees and charges will/should be detailed in that.
Some agents typically try and charge two weeks rent when there is a change of tenant. Did your tenants move out?
Many agents will try on re-lease fee if the same tenants remain in situ but on a new lease.
Hi Derek..
The tenants never moved out when I bought this property. Original tenants in place all the time.
Despite of that I was charged with Annual fee. This was my first IP and first time rented out.
When he gave me the contract he did mentioned on that annual fee but I thought that was common.
I really feel frustrated and betrayed.
HI Opee,
Sounds like you can write this one off as 'tuition fees' – when next negotiating any agreement just remember all fees are negotiable. Most states have websites run by the state based Real Estate Agent Industry or Consumer Affairs which detail what fees are typically charged in each state.
See if you can grab yourself a copy and have that in your back pocket when next negotiating agreements.
Thanks Derek…
Thanks derek.. He only charged me management fee and Annual Service fee But no letting fee.
But annual fee was charged annually with everything covered. But i still dont think it was fair anyways I have got a new manager now which is good
opee wrote:Thanks derek.. He only charged me management fee and Annual Service fee But no letting fee.
But annual fee was charged annually with everything covered. But i still dont think it was fair anyways I have got a new manager now which is good
Certainly looks like was double dipping.
In life one always learn lessons…
Atleast i have sacked him n got a new one and now learnt and gained
knowledge which will help me and I can pass on to ppl
who are regularly being scammed and double dipped.But one thing these ppl should always remember
Whatever goes around comes around…
Double dipping is a good way of putting it Derek
We have found with all our places that when we are satisfied with an agent but not some of the management contract conditions they will usually agree to cutting these out if you negotiate or just cross them out when signing. Eg we didn't want to pay a $15/mth admin fee, so we crossed it out. Also didn't want to pay a half week rent for re-newing a lease so crossed this out too. Plus we always change the notice period to between 30 days or less, rather than 60/90.
I agree with Derek, make sure you find out the standard rate in the area and then negotiate down. They are trying to win your business after all and will usually meet you at a lower rate to avoid losing you to the competition.
Recently we decided on a company who had been wonderful to deal with prior to signing and then the property was handed over to an inexperienced PM who stuffed us around. Out of that we learnt that the agents will put a lot more effort into finding you a good tenant and fast when you multi list and they are racing another agency to win the business. A lesson learned the hard way (property empty for four weeks before I took it into my own hands to fix) but good for the future!
Hi Peachy..Thanks for the comments.
Its true lesson learnt hard way.. I have finally sacked the property agent and got a new one and getting things back on track.
Its just the world now is full of greed and ignorance and these ppl make you learn in life.
Thanks anyways..
PEACHY wrote:We have found with all our places that when we are satisfied with an agent but not some of the management contract conditions they will usually agree to cutting these out if you negotiate or just cross them out when signing. Eg we didn't want to pay a $15/mth admin fee, so we crossed it out. Also didn't want to pay a half week rent for re-newing a lease so crossed this out too. Plus we always change the notice period to between 30 days or less, rather than 60/90.I agree with Derek, make sure you find out the standard rate in the area and then negotiate down. They are trying to win your business after all and will usually meet you at a lower rate to avoid losing you to the competition.
Recently we decided on a company who had been wonderful to deal with prior to signing and then the property was handed over to an inexperienced PM who stuffed us around. Out of that we learnt that the agents will put a lot more effort into finding you a good tenant and fast when you multi list and they are racing another agency to win the business. A lesson learned the hard way (property empty for four weeks before I took it into my own hands to fix) but good for the future!
Peachy, not always the case. Sometimes they Will find you “anyone” just to be in first with finding you a tenant.
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