I am cranky. I have been charged $192 for re-leasing my property (to the same tenants) and the lease was for 6 months. Now they want to charge me another $192 to re-lease it (to the same tenants) for another 6 months.
I have questioned this (which was ignored the first time) but finally answered when I mentioned that another agent in the same area was charging $55 for the lease renewal paperwork. They showed me (highlighted for great effect!) where I signed the management agreement 8 years ago agreeing to 55% of the weekly rental for a lease renewal. But then said (because they were afraid I was going to terminate the agreement) that they would only charge me the ‘standard’ fee of $55 for the next lease renewal.
The agency has changed hands since the agreement was signed and on this agreement (which I have looked over now with a fine tooth comb) the assignment clause was initialed by one of the owners of this property (ex-husband). Not both. Does this invalidate the assignment clause and should a new agreement have been drawn up because the agency was now operating under a different company name?
I am just peeved about the greed of this agency who is now quick enough to revert back to the ‘standard’ fee when they think they may lose my rental but happy enough to milk me when I don’t ask questions.
I have looked up the REIQ home page and it does say agents can ask for 0.55 of the weekly rental for lease renewal however I believe this is discretionary and I have been charged $0 for my other 3 rentals with 3 different agencies managing these rentals (Brisbane, Nanango and Townsville) The rental property I am referring to is in Maryborough.In Sydney we pay 5% of rent (+0.5% gst) + 1 weeks for a new tenant, On one of my investments I’ve paid $40 for a lease fee to “re-up” an existing tenant and let them know this would be the last time I’d be paying for a new lease to be drawn up and it needs to be taken out of the 5% otherwise I’d be moving my property to another agency.
I’ve also let them know that the property is NEVER to be a month to month rental without my written permission so longer leases mean less work for them.
Thank you for your comments. I have checked the agreement again and am being charged 3.85% management fee + 5% commission (8.85%) + $6 for sundries and post. They have never posted anything to me and I am now questioning the sundries!
I am now convinced that I am being ripped off and need to change agencies.I would be concerned if the agency was encouraging of 6mth leases rather than longer leases, because it costs you big time as you are learning.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
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