Does this sound right?

[Ellmay]

Hi,

My PM recently breached my old tennant to leave as she stopped paying rent for about a month and was always in arrears etc. Left the house in a shambles etc. All the good stuff. Anyway, the tennant has left now but agreed to pay back the rent she owes me (aprox $1,300) as a payment plan of $50 per fortnight. She's agreed to co-operate as she doesn't want to end up on TICA.

So I received a statement from the PM for the first payment. They charged me a managment fee AND a postage and petties fee...bringing the total down to $40
To me this seems unfair considering they're not actually managing anything..just passing the money on, and i dont see how there would be any postage and petties involved. They will already be charging me all these fees for the actual house i have rented with them (when i find a tennant for it). Seems like their doubling up on fees.

Would i be better off just asking them if i can get the money directly deposited into my bank account? Then theres the issue of the tennant deciding not to pay back the money anymore as its not backed by an agency.

Thoughts and opinions would be very much appreciated.
Thanks

 

[Scott No Mates]

Is the agent doing their duty ie collecting outstanding debt and transferring to your account?

When the new tenant takes occupation, then your petties & postage will remain constant they won't be doubled because they are collecting debt + rent.

 

[Woodley]

Hi,

My PM recently breached my old tennant to leave as she stopped paying rent for about a month and was always in arrears etc. Left the house in a shambles etc. All the good stuff. Anyway, the tennant has left now but agreed to pay back the rent she owes me (aprox $1,300) as a payment plan of $50 per fortnight. She's agreed to co-operate as she doesn't want to end up on TICA.

So I received a statement from the PM for the first payment. They charged me a managment fee AND a postage and petties fee...bringing the total down to $40
To me this seems unfair considering they're not actually managing anything..just passing the money on, and i dont see how there would be any postage and petties involved. They will already be charging me all these fees for the actual house i have rented with them (when i find a tennant for it). Seems like their doubling up on fees.

Would i be better off just asking them if i can get the money directly deposited into my bank account? Then theres the issue of the tennant deciding not to pay back the money anymore as its not backed by an agency.

Thoughts and opinions would be very much appreciated.
Thanks

Does it sound right - yes
Is it the right thing to do - no
I'd be negotiating it down so no postage and petties were payable at least until the time that the property is retenanted. We're currently charged $7 for postage and petties to receive one emailed statement per month.
I seriously do not understand some property managers. Those ridiculous meagre fees that they charge could potentially cost them the ongoing management of a property, and recommendations.

 

[BeYourOwnAgent]

Does it sound right - yes
Is it the right thing to do - no
I'd be negotiating it down so no postage and petties were payable at least until the time that the property is retenanted. We're currently charged $7 for postage and petties to receive one emailed statement per month.
I seriously do not understand some property managers. Those ridiculous meagre fees that they charge could potentially cost them the ongoing management of a property, and recommendations.

^^^ Exactly what he said.

We had a policy for situations like this - we would not collect fees on tribunal awards or arrears chase ups.

Technically you can, but it didn't make commercial sense to me.

Just email the agent and ask if they can waive it in this instance, for the sake of good will and the business relationship.

 

[Peterw]

With every thing computerised, its on auto pilot. I would imagine that the agency has not picked it up, and would be happy to reverse it if you pointed it out to them.

 

[Ellmay]

I emailed them about it and they said that when my house is eventually leased, the rent arrears payments and new tenants payments will go on the same statement to avoid double ups. Apparently they charge commission on rent collected and this payment plan goes towards the rent therefore they take their commission. The postage and petties fee is taken monthly and contributes towards the "free" financial statement at tax time.

 

[BeYourOwnAgent]

I emailed them about it and they said that when my house is eventually leased, the rent arrears payments and new tenants payments will go on the same statement to avoid double ups. Apparently they charge commission on rent collected and this payment plan goes towards the rent therefore they take their commission. The postage and petties fee is taken monthly and contributes towards the "free" financial statement at tax time.

What a joke.

A end of year financial statement is literally just clicking a button on the software to create the statement, and it's then sent out. There is absolutely no human input or effort.

 

[DaveM]

What a joke.

A end of year financial statement is literally just clicking a button on the software to create the statement, and it's then sent out. There is absolutely no human input or effort.

Except for a "little miss pouty" office junior stuffing 500 envelopes at the front desk

 

[BeYourOwnAgent]

Except for a "little miss pouty" office junior stuffing 500 envelopes at the front desk

Haha - true. Never a fun job!

 

[mattysavager]

My PM recently breached my old tennant to leave as she stopped paying rent for about a month and was always in arrears etc. Left the house in a shambles etc. All the good stuff. Anyway, the tennant has left now but agreed to pay back the rent she owes me (aprox $1,300) as a payment plan of $50 per fortnight. She's agreed to co-operate as she doesn't want to end up on TICA.

To me this seems unfair considering they're not actually managing anything..

I think the PM charging management fee on this money is totally fair. For the last month that the tenant was living in the property but not paying rent, the agent was managing it for free. No rent paid = no agent commission. They did the exit inspection and all the work involved for 'free'?

Also, when you say that the tenant agreed to pay back the $1,300 - did the agent do the phone calls and threatening to get this money back for you?

Like Erik said, I don't charge commission on insurance payouts or bond claims, but if it's just rent that is being paid now, that was supposed to be paid previously, then I don't see a problem. That might be the agent in me talking, but as a landlord also, I'd be happy to pay the commission on that $1300.

As for the postage and petties, I would ask to not pay those until the property is re-let, as that's fair enough I think. You usually only pay those when you have a tenant, as that's the way the software works, so this isn't the agent being nasty - but then again it might not be worth annoying them to recover. It'll be what, $5.50 if it takes 4 weeks to rent your property?

Matt

 

[BeYourOwnAgent]

As for the postage and petties, I would ask to not pay those until the property is re-let, as that's fair enough I think. You usually only pay those when you have a tenant, as that's the way the software works, so this isn't the agent being nasty - but then again it might not be worth annoying them to recover. It'll be what, $5.50 if it takes 4 weeks to rent your property?

Matt

Fair point, but I think it's the principal of the matter that the OP is talking about.

From the point of view of the agency; is it worth the landlord thinking they are greedy for the sake of $5.50?

 

[mattysavager]

From the point of view of the agency; is it worth the landlord thinking they are greedy for the sake of $5.50?

Look I think either party is silly to want their $5.50. My coffee costs more than that. To be honest, I hadn't even considered that the owner would be paying an extra postage and petties in this situation until this post on Somersoft. Usually owners pay it every single month as they usually get money every month.

It would only be 'extra fees' for the statement period where there was money coming in, but the property was otherwise vacant. If the tenants had renewed, the OP would be paying the $5.50 anyway.

As it's already been deducted automatically, in this case the OP would have to ask for it back, which might annoy the PM. If I was the OP, I'd just be glad that I was getting any of the $1300 back and not lose sleep.