Does your property manager charges you Supervision and Sundry/Postage Fees on top of Management Fees? How much?
My manager in SA that had steadily raised her Supervision and Sundry/Postage Fees. When it was $3.00+GST per month I did not much worried (it’s what everyone is charging after all).But now it’s split on Supervision and Postage Fees. I’m getting $4-6 in Postage and $2-9 in Supervision (it’s varies from bill to bill) per proeproty per month. She manages few properties, so it adds. And considering rent is just $190 per property – it’s a large %.
They told me Postage fee also includes phone calls regarding the property.
As for Supervision fees (whatever it is) – why I need to pay it at all? Whatever supervision they use – isn’t it part of their Management Fees?
If it is not on your management agreement and there haven't been any amendments to the document tell them to retract these or you will walk.
Supervision fee, hmmm maybe I try it on and see what my clients would say…..(Does it relate to supervision charges pertaining to works done on the houses? – there is a % or $ fee attributable to this).
Thanks for the post, and well done on being diligent in managing the expenses.
It seems like this is an extra way to claw some money for essentially doing their job, but it is not uncommon.
The first thing I would do is get an accurate understanding of what the cost relates to… i.e. what postage and what supervision.
You can look to renegotiate if you can find another agent in the area who doesn't charge this fee and mention that you are thinking about transferring over your business unless the charge is removed.
I also agree that the fee should be mentioned in the rental management agreement. If not, it is unreasonable to charge it.
Sincerely,
– Steve
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
This 'sundary and postage fee is just another cash scam to claw more money out of you to do the job you are ALREADY paying for.
7-10% of rent is more than enough to cover all expenses; if not, then are you just paying them the 7-10% to 'just' recieve money everytwo weeks which is usually done via an auto bank transfer.
And do they also charge the same 'postage' fee if they sen their accounts via email (with no postage costs incurred)?To be honest, they are taking the mickey with those extra fees.
E.g. these days postage is actually worse service than email (less convenient, if you're paperless you have to scan it manually) and the want a fee for worse service?
And on Colin's point about paying somebody to collect money for you: some agents don't even use direct debti (e.g. they take the money from the tenant's account), they rely on direct deposit (i.e. the tenant has to click pay each month, it's not even automated).
I recently met a guy in property management who charges 8.8% fees including GST and all fees, and the paperwork is on an online portal. But he's rare in providing that level of service. And he's not in SA, so I can't pass on this name.
On the other side, most agents I've come across quote 8% but forget to say that it's GST exclusive, and that there are other costs on top of that, the biggest being a "letting fee of 1-2 weeks rent.
Incidentally, quoting a price GST-exclusive is illegal and considered an unfair trade practice by the ACCC.
Back to your point: when picking an agent I'd rather the guy who tells you the total price up front .
I had a disagreement with a colleage this week about property management. I said I think 1 in 10 of our landlord clients are happy with their real estate agent. He thinks it's zero out of 10.
Ol Painting wrote:As for Supervision fees (whatever it is) – why I need to pay it at all? Whatever supervision they use – isn’t it part of their Management Fees?
That's a first for me – I've never heard of such a fee before. The sundry/postage line item is standard stuff but it really should be part of their "management" fee.
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]
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