Letting Fee Query

[Modal Harmony]

We have just settled on our 6th IP and have a new PM due to the location (QLD Sunshine Coast). The house already has 2 young ladies as tenants who were on a periodic lease (monthly) after the seller put the house up for sale. This shall now revert to 6 month lease with these same 2 persons.

Question - should the new PM expect a letting fee considering no advertising was required? They merely had to collect the paperwork from the existing PM (who we decided not to proceed with).

The let fee is generally one week's rent and the new PM has suggested 50% of this let fee, but in fact are flexible since they want this to be a long term relationship. All the other credentials of this new PM appear in order.

 

[sunshine]

I have bought two IP's with tenants already in place and I did not pay a let fee at all. Very fair me thinks too.

Sunshine

 

[LynnH]

MH

I think that a letting fee under the circumstances you describe is really a bit rich! Maybe time to check out just how flexible the new PM is?

Cheers
LynnH

 

[marg4000]

Check the agreement you signed with your new PM. All fees and charges will be clearly set out in it.

You did read it, didn't you?

(Not being sarcastic here - we were less than thorough with the first PM agreement we ever signed and learned a valuable lesson.)

BTW, we have an IP on the Sunshine Coast and to pay a fee for the situation you advise would not be included in most PM agreements that we have seen for this region.
Marg

 

[Modal Harmony]

Thanks all for your replies. Yes Marg4000, we did read the agreement and the item schedule (Item B - Commission) states the letting commission as one week's rent, however, the comments which conclude this sub-section state "Renewal of existing tenancy will be free of any fee or commission."

To my understanding, this would apply to transfer between PM agencies. Any thoughts anyone?

 

[LynnH]

"Renewal of existing tenance will be free of any fee or commission" sounds pretty clear to me! Surely they would have included something along the lines of "except where the property is transferred from another PM" if they wanted to hit you with a letting fee? It's not as if transferring an IP to another PM is an unusual situation.

Cheers
LynnH

 

[marg4000]

Clearly this is a renewal of a tenancy so therefore there is no charge. Simply quote the agreement to the PM.
Marg

 

[Xenia]

I don't see a reason to charge a letting fee if it is taking over an existing tenancy. It is already let!

However, I wouldn't squable over 1/2 week rent if the agent is otherwise good and reliable!

 

[kathryn d]

I don't see a reason to charge a letting fee if it is taking over an existing tenancy. It is already let!

However, I wouldn't squable over 1/2 week rent if the agent is otherwise good and reliable!

If this PM is new to her, how does she know yet if she is "good and reliable"?
All she knows now is that she wants money for nothing.