Body corp as forced property manager

[ramblin]

I'm currently looking at purchasing a property to put my mother in as the tenant. I really like the property but just found out all rental properties have to go through the body corp...with a fee. The actual agreement is between the tenant and landlord though and can be whatever we set it at. They won't disclose the fee until we have a contract in place! They said it's standard so I'll assume 6-8%?

Kind of takes the sheen of the whole venture but I'm wondering what's to stop me from charging my mother a token rent amount of $100 pw, paying them their $8.00 and then my mother paying the difference to me privately.

I realise there is an ethical consideration here. I guess I am in defensive mode at the moment trying to work around something I find unfair (forced property management). I do have to pay body corp as well so to pay an extra % to collect rent burns my chaps.

Just not sure whether to walk away, work around it or live with it.

 

[Bats]

Never heard of this - is the Body Corp licensed to receive rents and charge a fee.

The easiest thing would be get your mother to pay you direct - who you have in your unit is your business.

 

[travelbug]

It sounds like a company titile???

Where is the property located? What does the contract say in regard to this?

Unless it's a company title I don't see how it is enforcable.

 

[ramblin]

the plot thickens i think
We looked at 4 units and 3 of them are being sold by RAAS (in QLD) and the other was being sold by another RE.
My husband asked the guy at the admin building (on site) about the rent and the story he told my husband was as I described above
The guy then went to show my husband the other 3 units and amongst the discussion the guy mentioned a 3rd party real estate agent was going to be putting a tenant in one of the units soon possibly
so my husband said hang on, how can another real estate agent be putting a tenant in if you're taking fees for rent...so that's 2 property managers?
the guy then back peddled a bit and said the story he previously told my husband was if we were going to be buying a few units and living in one and renting others out....how he sees that as an everyday occurrence I'm not sure
thankfully the one we do like was the one being sold by another RE

so I think it will be ok and we will just avoid this guy like the plague. we are yet to put a contract in place....will be making an offer in the next few days

Thank you for confirming it was an odd arrangement. It didn't feel right so am glad to hear others thought so too.