Is a $125 fee for a quote reasonable??

K

Kitkat

I had a potential tenant request that some minor squeaking boards be fixed prior to signing up.

As the issue was minor I advised the property manager that I would be prepared to pay up to $200 for it to be fixed. She then went and arranged a quotation which was $550 plus GST which was way too much so I didn't proceed.

My husband and father consequently fixed the problem themselves in about 1 1/2 hours.

Upon receiving my monthly statment I find that I am being charged $125 for the quotation.

I find this absolutely unreasonable, what do others think?

Your input is valued!
 
Everyone deserves to be paid for their work, so I generally don’t have a huge problem with paying for a quote if it takes some time to do.

However, $125 for a job totalling $550 seems quite unreasonable.

How long would it have taken to inspect the problem and write up a quote? How much does a tradesman charge himself out at?

I would not pay more than $50-60 for this quote.

Most tradesmen factor in the cost of quotes and overheads into their rates though and don’t charge for quotes, especially small jobs like this.

I would dispute the payment with the r/e agent.
 
In my opinion, it is cases like these that cause people to intensely dislike property managers.

You have told them that you will go to a maximim of $200 to fix and they spend $125 getting a quote ???????????? :eek:

As they use tradesmen regularly, they would be aware that this person charges for a quote, if it was a new guy then they should have asked.

Ask for a credit, if no credit, then I would get a new PM :mad: :mad:
 
An added insult to this situation is that I have just called the company involved and arranged FREE QUOTE for work on my current house. They were adamant that they do not charge for quotes. My question is then who is getting the $125 payment?

I am now not quite sure of what to do! How easy is it to ditch property managers after only 4 weeks of a tenancy??????????/
 
Maybe ring the PM, tell them that what you just found out and ask them directly what the cost for the quote is for - their time and effort, or the Tradesman.

Maybe its part of your rental agreement with them - is it written anywhere in your contract with the PM?

T.
 
Simon said:
Tell the PM you will be contacting the Office of Fair Trading to see what they advise.

Cheers,
Click to expand...

Agree, providing they have no clause hidden in their contract to cahrge for quotes I would report them but also accept you will be looking for a new PM because they will retaliate.

IS your tenant OK? If so take them over personally ( give notice) and move to another PM. Abyhow, they obviosly had no idea of the price so why pay for idiots to manage your investments?

This stuff sucks. Peter 147
 
We've all had similar experiences it seems. But keep you head, dont kill anyone (yet), and remember is only $150 so far. Dont go accusing someone of anything yet, just keep making 'enquiries' as to what the fee was for, why was it charged when normally they dont, etc etc.

Get all the info first, THEN sack the r/e agent if the facts warrant this.

TheBacon
 
Kit Kat,ive been a tradesman for 17 years and know lots of tradesman and dont know ANY that charge for quotes.

Most likely the PM has his own little Quoting Biz on the side.
 
has the PM given you with the original receipt
from people that did the quote?
If not go to their office and ask for it to be produced on
the spot
 
You have the PM over a barrel. Caught conducting fraud.

Wouldn't it be interesting if it went to a court case and it became public knowledge to the rest of their rent roll?

I think they'll address this situation promptly so that it doesn't.

Cheers,

Aceyducey
 
Hi Kitkat
Smells like hell.
Does your monthly statement say who was paid the $125 ?
If the statement names the repair company or tradesperson, then write your request to the PM for copies of all quotes, invoices, statements or receipts for all the expenses incurred in managing your property for the month.
If you don't get the paperwork you requested, hand the matter to authorities.
In NSW, Dept Fair Trading, who issue licences to REA's also do snap audits of their accounts, trust accounts, daily accounts etc, just the thought of them turning up at the office puts shonky REA's on the ledge.
Fraud deserves no mercy - hope it's an error.
cheers
crest133
 
Kitkat said:
An added insult to this situation is that I have just called the company involved and arranged FREE QUOTE for work on my current house. They were adamant that they do not charge for quotes. My question is then who is getting the $125 payment?

I am now not quite sure of what to do! How easy is it to ditch property managers after only 4 weeks of a tenancy??????????/
Click to expand...

No need to go any further, ask your PM for a refund, get it, then get a new PM
 
A further update on the situation is that there was a small "mistake" in that the fee is "only" $72 and not $125. I have asked for all the paperwork and have expressed my lack of "understanding" of any fee, only to be told again that it is standard for all tradesmen to charge to give quotes.

I think my next move will be to boot the agent, another agent expressed that they would not use tradesmen who charged landlords to give quotes, that this was not in their best interest. Quite obvious I think!

thanks for the input
 
Hi Kitkat.

Have you made it known to your PM that you have spoken to the company involved and have been told that they do not charge for quotes?

I would be hitting them with that, then once it is resolved, they would be getting the flick.

Regards
Marty
 
Kitkat,
before you boot the PM, push the point! You mentioned that you arranged a FREE QUOTE on your own place by the same company that did the quote on your IP and that they did not charge for quotes, tell the PM this. I would definately be PUSHING the point!!!! I would not even be paying the $72.

Kind regards
John
PS: Then change PM, but check your contract you may have with your PM first before you do
 
I think I would insist on documentation first, I would NOT tell them I had contacted the company direct.

I would then go to consumer affairs and tell them what has happened. They should be able to advise you from there.

Good luck
 
I have asked for the invoice and all documentation associated with the charge. I did actually tell the property manager that I have arranged a free quote. All I got from that is that they charge "them" for quotes. No surprise, no concern that I have been unnecessarily charged. I actually should have told her that they can pay for the quote given that anyone else can get it for free!

They do have a guarantee that if I'm not satisfied then I get 3 months property management free. I will take them up on that and then give them the boot I think!

This is actually a very surprising occurrence with the particular agency. I would not have expected this at all.
 
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