New Authority Fee’s !!

What’s the difference between the two?
My letting fee is either one week’s rent (I’ve heard that you guys in WA have it tough with the two weeks thing. Never heard of a tenant having to pay a letting fee over this way!!) or2.3% which works out to be just more than 1 week’s rent.

That’s steep with all charges below on top. We get 7.5%, plus some, not many charges below. We used to get 6.6%, but had just about ALL charges below – I know which is better. I’ll take the 7.5% anyday!

I think mine is about $70

Never heard of this one. I would assume that is what you are paying the management fee for!!!

If this is different to the condition report (how?), then I only ever get charged the inventory, which is $70 – complete with digital photos on CD etc.

Part of management!!

Assume tribunal? I think we got hit with $150 flat fee, but can’t be sure…. I have paid $150 though

Is that per property? We were ($10 per month on the 6.6% fee, 5.50 on the 7.5%, but they are only charging us for one prop which is good)

Meeting with who? Different to the court/tribunal? Better not charge for meeting with landlords or tenants…

I think you’re better with a set max – our 6.6% agent charged us about $50 per ad per property (and they ran 2 per week for several properties!). Our 7.5% agent charges a max of about $25 per week, they cover the rest cos they know it’s advertising themselves more so than our props.

Redwing, I’d start shopping around!!!! These rates are outrageous!!

Note: Comments coming from somebody who owns no property in WA, and therefore has no experience with how the agents do it over there.

Cheers
Mel

This is a subject I’ve often wondered about.
We pay a flat 11% management fee with our PM, and a two weeks rental fee for finding a tennant, and one week’s rent for re-letting.

We did heaps of research and found “other” agents charge the same, but with a list of extras as mentioned above.

Have learned some interesting things by speaking with people who have used the agents I chose.

Look forward to other replies.

Diane

Speaking as an ex PM in NSW – Wow what a slug ! With fees like that, they’re not going to care whether they collect rent or not, or go to Tribunals, or the tenant does a runner. Its a win win win for the REA. Actually looks like a REA windfall every time you lose a tenant, so why would any agent want to find you a stable tenant? Better to have an unstable tenant who plays property leapfrog, worth much more for the REA, viz.On a $200pw property – re let fee ($400), 2 condition reports($140), final bond inspection ($50), ads ($50), new lease ($20), (sub-total $660) plus Tribunal time $$?? And having spent so long in Tribunals, man, wish I’d been on $99 per hour while you wait from 9 am to 11 to be heard, plus outside negotiation time with extra for hostilities and death threats at a premium, plus re-hearing time back inside after “negotiations.” Starting to look like lawyer fees at court to me. And 2 weeks re-let !! [ohno] Looks like the incentives are in the wrong place.
Better to encourage the agent to find a good tenant and keep them.
So, LOWER the following fees:
re-let,
condition report,
final bond inspection,
routine inspections,
court/tribunal attendances,
meetings.
INCREASE / ADD the following fees :
management fee for rent collected,
bonus for 12 month continuous uninterrupted rent,
bonus for successful unchallenged 6 monthly rent increases,
bonus for fixed lease renewal for same tenant.
30 day cancellation period of management contract or without notice while vacant if the property is vacant for more than 14 days.
There, that puts the shoe on the right foot.

After all, they’re supposed to “look after the best interests of the PO” , and all managements are open to negotiation and restructuring.
Offer the same deal to a number of REAs while the management agreement is up for renewal.
Got hides like Rhinos most of them.
good luck
cheers
thecrest

west Oz is the worst for charges. Not only did they think deregulation was a sign to put up pricing….DOH!!! but they cant even make a mid month payment happen on time, if at all. They all use the excuse that their accounting package wont allow for it.(of course not, Dos is so inflexible) and the quibble about doing it manually. Then the high rates, then the stupid leasing charges. I would still be investing there if they got their coollective heads out of the sand and stopped living in the dark ages.

Eastern states dont have that problem, tassie is a little high for management but its all inclusive with no stupidity on extra fees. Nice to have most in Qld where they are at least fair with pricing and charges, ask if you want variable payment options (mid month or weekly)phew, and are proactive in getting quotes when things need doing. Altogether with the lower everything and still the best potential for growth in any state im happy to do Qld a few more times.

Anyway enough babling from me, good luck with negotiating. I actually cross out fees and clauses, change 90 days to cancel into 30 days and initial it before handing it back to the manager. They wear it or I walk these days, and I check management fees before buying too.
One agent in Perth smiled at me and said 14% management. I smiled and tore up the contract.

Have fun.

DD

Don’t sweat the small stuff,and it’s all small stuff!!

Redwing,

Why sign a new agreement, your old one is probably still sufficient, it usually says in it that once the original authority runs out, then the agreement continues until either party gives 21 days notice or something to that affect. Last time a managing agent sent me a new authoity out, I simply emailed them advising that I was happy with the current agreement and I would continue with that one unless they give 21 days notice that they no longer wish to be part of the agreement (and quoted the paragragh in the agreement that states this, of course) and guess what, I’ve not heard anything from them since and they are still charging me the orignal fees that I signed under.

If they give notice of the fee increasing then I’ll decide whether to stay or go.

Lastly with the letting and management fee increase, it may be that the orignal contract showed the prices without the GST and the new contract shows the prices with the GST included as the difference is exactly 10%.

Good luck.
PK

Must be the outer limits who have a misconstrued opinion of their worth.

One Rockingham agent thought 9.5% of gross rental income (yes you read that correctly) was a fair letting fee. Needless to say I didn’t continue our discussion.

Derek
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