Am I too naive

I've been in here for a while and thanks to everyone I learn a lot from all of you guys. This is my very first post and I need your opinion pls.
Here's my story.I just purchased my 1st investment house in QLD through a buyer agent and the owner wanted to rent back while completing her new house. Thing is she only agree to pay for $270pw while the market price is around $295pw, so the REA said he will help me by managing the house without any fee during her stays and the old owner will deposit weekly payment directly into my account (this is all I heard from my agent buyer and thought this is alright for me). During the settlement progress, I asked to have a rental agreement from the owner which both agents said I don't need to as this will create hassle for the REA,I kept my opinion firmly.
Yesterday after everything's settled, I called the REA and only knew that I need to pay half of the fee for them to do rental agreement (it's sending to me now) and I have to manage the IP myself because they can't do it for free unless I pay them 7% management fee(which is discount fee because I bought house from them). I haven't talk to my buyer agent yet, he currently on holidays and will be back next monday. I'm a bit upset and getting nervous since I'm new in this and in Sydney, it may hard to manage the IP. I wonder what if I didn't asked them to do the rental agreement for me, they may tear me into parts now.
 
I just purchased my 1st investment house in QLD through a buyer agent and the owner wanted to rent back while completing her new house. Thing is she only agree to pay for $270pw while the market price is around $295pw, so the REA said he will help me by managing the house without any fee during her stays and the old owner will deposit weekly payment directly into my account (this is all I heard from my agent buyer and thought this is alright for me). During the settlement progress, I asked to have a rental agreement from the owner which both agents said I don't need to as this will create hassle for the REA,I kept my opinion firmly.
Yesterday after everything's settled, I called the REA and only knew that I need to pay half of the fee for them to do rental agreement (it's sending to me now) and I have to manage the IP myself because they can't do it for free unless I pay them 7% management fee(which is discount fee because I bought house from them). I haven't talk to my buyer agent yet, he currently on holidays and will be back next monday. I'm a bit upset and getting nervous since I'm new in this and in Sydney, it may hard to manage the IP. I wonder what if I didn't asked them to do the rental agreement for me, they may tear me into parts now.

Yes, you probably were a bit naïve. Think about it. Why would the REA ‘manage’ the property for free? What did you expect them to do if you didn’t pay them anything? In any case, you were probably dealing with the selling agent. Did you ask their rentals team? Also, what legal rights were you expecting if you didn’t sign a lease?

My suggestion: get a rental agreement (so that you have the rental bond, etc). Do it at the $270pw because that’s what you agreed to. Sign for 6 months, and pay the 7% REA fee.

It’s not much. You’re only losing out on a couple hundred dollars. After the 6 month period, raise the rent. I wouldn’t get too upset about it. In the long run this couple of hundred dollars will mean nothing. Learn a lesson for next time.
Alex
 
What Alex said.

Cop it on the chin, sign a lease, pay the fees, don't stress for 6 months.
At the end of the 6 months, up the rent, and decide if you are happy with the managing agent..


Welcome to Somersoft. May it aid your property knowledge.
 
Thanks for your all replies. I will speak to the buyer agent on monday to see what we can do, in worst senario I will pay 7% management fee.
Think about it. Why would the REA ‘manage’ the property for free? What did you expect them to do if you didn’t pay them anything? In any case, you were probably dealing with the selling agent. Did you ask their rentals team?
Alex,I didn't believe it at first so I confirmed with buyer agent more than 2 times. I did speak to the rental lady and she told me she does what the selling guy tells her to do :eek: he's business owner, so you know who's really in charge.
Also, what legal rights were you expecting if you didn’t sign a lease?
That's why I asked to have rental agreement.
 
For this to be real, you would have had to ask for a rental agreement that says your management fee is zero. Unfortunately verbal agreements aren't worth the (non-existant) paper it's printed on.
Alex
 
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