About renew property management contract

Discussion in 'Property Management' started by paguatao, 3rd Apr, 2009.

  1. paguatao

    paguatao Member

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    Our contract with the PM is about to expire (been with them for 12 months). Their management fee is currently 9.35%, am also paying $5 monthly postage with $55 quarterly inspection fees.

    I have emailed them asking to discuss the renewal and negotiation of any discounts, and the reply (as expected):

    The fee of 8.5% is the standard management fee for one property. But I did several discounts for you in areas of postage, nil advertising fee, nil search fee.

    I will also not charge the normal $25.00 monthly admin and $150.00 lease renewal fees that are now standard on all the 2009/ 2010 management authorities. So your new contract will have all the above discounts included.
    We have also had no rent arrears or any other problems in our 12 month term of management either, that can lead to other costs for owners to bear.


    My question is re. "normal $25.00 monthly admin and $150.00 lease renewal fees that are now standard on all the 2009/ 2010 management authorities."
    This isn't in our current contract anyway, and what does it mean by
    "now standard on all the 2009/ 2010 management authorities."?
    Standard for all REAs? Standard for 2009/2010 where they weren't before? This is still negotiable right, like all the other fees?

    Why would I want to negotiate on something which I'm already not paying for - I want to negotiate the fees which I am currently paying!

    I don't think I can get them to budge on the 9.35% - maybe ask them to slash the $5 postage fee? :) They should really try emailing the statements. I get one statement a month ...
     
  2. Xenia

    Xenia Xenia

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    It just means that they have increased their fees for all renewed management contracts.

    Everything is negotiable! It's just a matter of you stating that you would be happy to re-sign another 12 month contract as long as they waive the $25 admin fee or whatever does not work for you.

    X
     
  3. steveadl

    steveadl Member

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    Bloody hell! PM's in WA really do charge a hell of a lot don't they! :eek:
     
  4. paguatao

    paguatao Member

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    Yeah, I know. A bit too scared to negotiate, even asking about raising the rental (currently $275 for a 3BR house 30km south of city) and I get "Oh, rents are flat at the moment, a lot of people are buying instead of renting ..."

    They have been good about getting a rent increase in the past, and I have had no problems with the tenant, so .... now I'm hoping they will just stay on!