Can real estate agents charge that?

[rodimus]

Im renting the place im living in at the moment. The rental agent has told me that to renew the lease, they cannot post it to us due to new company policy (said some contracts sent out were not signed). So they demanded thatI have to make a trip to their office to sign it. Also, i have to pay $15 for them to prepare the contract(?). She said the contract costs $35 to draw up, tenant pays $15, and owner pays the rest.

Is it normal for tenants to pay this sort of things? What can i do?

 

[Sultan of Swing]

It's not the done thing here and I've never heard it happening anywhere else either. Sounds like a bit of a rip off.

 

[duncan_m]

Geez.. whenever I think Agents and PM's cant sink any lower.. a post like this pops up and once again I'm proved wrong.

 

[trajik]

What should you do?

first, communicate with the agent that the fee is not acceptable and very unusual, and asked that it be waived,

second, have them send the contract by registered post, at their cost,

third, start looking for a new agent, or just do this first.

They are within their rights to charge you, and you are within your rights to look elsewhere, and I would also think that the tenant would be unimpressed as well.

 

[Bandita]

What should you do?

first, communicate with the agent that the fee is not acceptable and very unusual, and asked that it be waived,

second, have them send the contract by registered post, at their cost,

third, start looking for a new agent, or just do this first.

They are within their rights to charge you, and you are within your rights to look elsewhere, and I would also think that the tenant would be unimpressed as well.

I think Rodimus is the tenant!

Hi Rodimus,

I've never heard of this before - this should be the owners expense, if anything. When you apply to rent a property - you don't pay a contract fee (the owner might in the "letting fee" - but not the tenant) - it should be no different in renewing the lease.

Accordiing the to VIC Tenants Union - it appears to be illegal! See 'Complaints about estate agents and landlords' P.2,

http://www.tuv.org.au/advice/resources.aspx

"Other offenses include......trying to charge for things that landlords or agents are not entitled to charge for (eg. a property inspection, a tenancy agreement)..."

I'd tell the agent you'll be reporting them


Cheers,
Jen

 

[Xenia]

Licened agents including those working in property management can charge whatever they want, it is not "normal" but is allowable by law. The fact that it is legal does not make it ethical.

As a property manager I think these people are being very unfair for 2 reasons:

1. I agree that tenants should sign leases in person, but the pm can take a trip to the tenant, that's what they are getting paid for!

2. Charging anything to renew a lease with the same tenant is just absurd even if the law does allow it!

Landlords should look at contracts with agents very closely before signing, if they are charging anything other than the initial letting fee and management fee, do not sign it, you are being ripped off!

By the way, it costs NOTHING to prepare contracts, we download them for free of the real estate institute or OCBA websites and get the tenant to sign them. I'd like to know what has cost them $30?????

 

[ani]

I have always paid a $15 fee each lease in NSW having rented for the last 20 years!

Seems to be standard here though I don't make my tenants pay it.

 

[Rolf Latham]

Yeah ANI

But behind ur back your PM probably is

ta
rolf

 

[sailor]

This is highway robbery! Tis illegal in Qld. Check out the rules in Vic, and report them if they are doing the wrong thing.

 

[LearningMan]

I have always paid a $15 fee each lease in NSW having rented for the last 20 years!

Seems to be standard here though I don't make my tenants pay it.

We have also paid the $15. Are there any licensed NSW Property managers on the forum who could comment ?

 

[ani]

From The Dept of Fair Trading, NSW

Agreement costs
The landlord can ask the tenant to pay half the cost of preparation of the tenancy agreement, but only up to a maximum of $15 (GST inclusive).

This means that if an agent or solicitor charges more than $30 to prepare an agreement the landlord must pay the balance over $15.



http://www.fairtrading.nsw.gov.au/realestaterenting/tenantslandlords/entrycosts.html

 

[redwing]

WOW

Never heard of this one before and in WA the PM's have a charge for just about everything !

Property Management Fees
-Not sure how to link to a single previous post?

 

[dave99]

In Victoria:

A landlord or agent cannot charge for:
- showing the premises to a prospective tenant
- issuing a rent payment card
- the establishment or use of direct debit facilities
- the making, continuing or renewing of a ‘Residential Tenancy Agreement’ (also known as a premium, bonus, commission or key money).

If the landlord or agent attempts to charge the tenant for any of the above services, a $1000 fine can be imposed.

Tell them that and if they don't back off, report them to Consumer Affairs!

Link: Renting Guide

 

[rodimus]

yo guys
im in NSW at the moment. The agent says charging me $15, which does not include gst. Said the gst is paid by the owner.

 

[Jacque]

From The Dept of Fair Trading, NSW

Agreement costs
The landlord can ask the tenant to pay half the cost of preparation of the tenancy agreement, but only up to a maximum of $15 (GST inclusive).

This means that if an agent or solicitor charges more than $30 to prepare an agreement the landlord must pay the balance over $15.



http://www.fairtrading.nsw.gov.au/realestaterenting/tenantslandlords/entrycosts.html

Ani is spot on, and it's very common for NSW landlords to have a debit of $18 on their rental statements, as lease prep fee on renewals. Total cost is $33 (inc GST) so the tenant pays half minus GST = $15.00

All my NSW properties PMs charge this amount.

 

[jac]

I haven't seen this in residential leasing, however it is common practice that these fees are split equally between tenants and landlords in Commercial tenancies.

By the way, it costs NOTHING to prepare contracts, we download them for free of the real estate institute or OCBA websites and get the tenant to sign them. I'd like to know what has cost them $30?????

Ahhh, you forgot labour costs!


Jeff.

 

[Xenia]

I haven't seen this in residential leasing, however it is common practice that these fees are split equally between tenants and landlords in Commercial tenancies.




Ahhh, you forgot labour costs!


Jeff.

Jac you are right, commercial leasing costs money to prepare because often there are solicitor costs involved and it is more of a specialist lease. Commercial and residential leases are completely different.

As for labour, that's what the management fee covers!

I still think it is unethical to charge for renewing a lease with the same tenant!

 

[jac]

I agree, if it's a straight forward renewal with no changes, amendments etc. then it should be a "goodwill" gesture.

I suppose as with other service industries, the principals/owners only look at revenue rather than service!

See how such a (virtually) insignificant amount of money can put someones nose out of joint, and ultimately lose the client.

I often give free advice. Sometimes it leads to new clients.


Jeff.

 

[dave99]

Hmmm - for NSW:

Agreement costs

The landlord can ask the tenant to pay half the cost of preparation of the tenancy agreement, but only up to a maximum of $15 (GST inclusive).

This means that if an agent or solicitor charges more than $30 to prepare an agreement the landlord must pay the balance over $15.
​

Doh!

http://www.fairtrading.nsw.gov.au/realestaterenting/tenantslandlords/entrycosts.html