Property Manager price rise.

Hi Mikal

They are welcome to put their fees up.  Equally, you are welcome to take your business elsewhere or negotiate with them.  Nobody is forcing you to sign their new agreement. 

You are welcome to put your rent up.  Equally a tenant is welcome to accept the rise, or move out.  As to whether you would get another tenant quickly depeneds on many factors, including the condition and location of the property, its price, how many tenants are looking for a place to live, and what kind of dwellings people are looking for.  Generally tenants will not move for a $5/week rise. 

If your Property Manager tells you the market is flat, or that your tenant cannot endure a rental hike, this is information you are, in part, paying them to give to you.  I think that most folks can sustain a $5 hike.  If they could not, then they can never afford anything at all out of the ordinary to happen to them ever.  eg get sick, must go to doctor, and purchase a packet of antibiotics. 

I always listen to my PM and factor in what she says, but I don't always do precisely what she says.  It is often a combination of what she thinks and what I think, based on our respective knowledge of the market at the time.

If you want your PM to put the rent up, send him/her an email clearly stating  you want it done and by when. 

Hi Mikel,

JacM  has really provided you with some good advice. Depending on what area you are in, it could be true that the rental market is struggling in some areas and booming in others. You will start seeing real estate agencies increase their PM fees for two reasons over the next couple of months:

1) Cost of running real estate business has increased – So to absorb some of the cost increases this is one way to increase revenue.

2) Sales are pretty flat in allot of areas, So agents will increase rates to absorb some sales losses as well.

You have a couple of options,

1) call the agent and say you have received the letter and advise them you are not prepared to work on does rates. But you have to look at your options, if you move to another agency how will the service be? Some times its better to no the devil you know then the devil you dont know

Hi Mikal.

Looks like your own costs just went up too, like the REA.

So you could advise the PM to increase your rent by $5 to cover the PM increase.

Cheers

thecrest

Hi Scott

Blame the pandemic of litigation lunacy spread and fed upon by the compensation lawyers for that particular cost increase.

Very few brokers or agents can  afford (literally)  to be without Professional Indemnity Insurance nowadays, one claim could cause bankruptcy.

Wish it were otherwise.

Cheers

thecrest