Hi,
I have just challenged my RE agent for a bill a while back where I've noticed that they charged me management fees on a bond payment from a tenant. The payment was not the lodgement of the bond, but actual payment for things that had to be fixed upon their leaving - i.e. expenses I was out of pocket for.
The RE agent answer was the following: "I have confirmed that Gross rental includes ALL collections - water cons etc and anything else we collect from the tenant on your behalf."
I don't believe that the management agreement carries a definition of "Gross Rental" but will check again tonight.
My laymans view is that the term "Gross Rental" would be used to ensure that if rent received is say $400 and the RE agent pays a property bill for me of say $50, they still receive management fees on the $400 - which is fair. If however the RE Agent has passed a water consumption bill to me of say $100 for water consumption of the tenant (which they sometimes do) and the tenant then pays back the $100 to me in the next months rental payment, I don't believe I should be paying fees on $400+$100 of "Gross Rent".
Appreciate others experiences on this.
Thanks,
I have just challenged my RE agent for a bill a while back where I've noticed that they charged me management fees on a bond payment from a tenant. The payment was not the lodgement of the bond, but actual payment for things that had to be fixed upon their leaving - i.e. expenses I was out of pocket for.
The RE agent answer was the following: "I have confirmed that Gross rental includes ALL collections - water cons etc and anything else we collect from the tenant on your behalf."
I don't believe that the management agreement carries a definition of "Gross Rental" but will check again tonight.
My laymans view is that the term "Gross Rental" would be used to ensure that if rent received is say $400 and the RE agent pays a property bill for me of say $50, they still receive management fees on the $400 - which is fair. If however the RE Agent has passed a water consumption bill to me of say $100 for water consumption of the tenant (which they sometimes do) and the tenant then pays back the $100 to me in the next months rental payment, I don't believe I should be paying fees on $400+$100 of "Gross Rent".
Appreciate others experiences on this.
Thanks,