This is a new one to me an wondering if any other LL’s have seen this before……
Just got the property management contract for a new IP that I’m looking at and noticed that in addition to the normal advertising costs for new tenants, lease prep fee, and 1 weeks “tenant finders fee” I noticed that for renewals that Glenn Regan in Newtown are ALSO asking that for lease renewals in addition to the normal $33 lease prep fee that an ADDITIONAL WEEK Rental for any lease renewals.
WTF?
This is in addition of course to their normal percentage fee + gst.
Just wondering if any other LL here had seen other agencies trying this one on or if this was a new thing? My response of course was thanks….but no thanks and i’ll flip it to one of my other PM’s but wondering if other LL’s had seen this before.
Hiya,
Not sure about over there in Sydney as all areas are different, but its very common in SA for there to be a 1.1 week incl gst renewal fee. Are you bothered by the cost or just the label on it?
You should weigh up the overall cost by factoring in the management fee, monthly admin fee, advertising costs, routine inspection fee, letting fee, renewal fee, etc to see what the actual overall annual cost will be.
Beyond that you should look at which PM agency is actually best in your area. A difference of plus or minus a few bob in either direction wouldn’t really change this. Ie Circular Quay restaurants cost more than McDonalds but if it was all about cost then the former would have 0 customers right?
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
It’s quite normal.
Has applied to all my IPs
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]
@Jaime, I guess I’m just lucky, none of my PM’s are charging me this and to be honest I’d pull IP’s from any that did try to do this. I think the PM’s do just fine on the 5% weekly cut based on what they do for it.
I don’t mind paying it – I think it’s a reasonable cost for finding a tenant.
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]
@jamie, I think you misread the post.
This isn’t the 1 weeks rent+gst for “finding the tenant” this is a new fee that I saw an agent trying to introduce for 1 weeks rent for “renewing” the lease + the $33 lease prep fee.
So basically for “coming up with the renewal price” and 20-40mins spent calling the tenant asking them to resign a new lease…..this agent is wanting to charge 1 weeks rent.
Basically 2% of your rent every year even if they did nothing but spend 20-40 minutes resigning the existing tenant……
Fairly common across the country. If there’s sufficient issue with it, some providers will no doubt market without that fee to gain market share.
What’s the saying about price and quality though?
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
What’s the saying about price and quality though?
Probably the same people who have no qualms about paying through the nose for BMW badge instead of a Toyota…..me….I ride the subway :)
Best $2.75 you can spend and can get you anywhere in NYC in 30 mins and faster than any car or cab.
My point being is if you don’t care about 2% ROI…..then feel free to keep paying.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
