New Managing Agency Agreement

[Sylvie]

We have received a letter from our PM asking us to sign a new Managing Agency Agreement due to the new legislation in NSW. We only sign with them last year in April.
The problem is the new agreement is completely different to the previous one. I agree we have to pay the $33.00 in full for the Residential Tenancy Agreement Preparation fee as we cannot charge the tenant for half of it anymore.

But they also changed:
- Management fee from 6.6% to 7.7%
- Initial lease fee from 1 week to 1.5 week
- Subsequent lease fee from 0 to 1.5 week
- Advertisement fee from 0 to $25.00
- Arranging Repairs or Maintenance or Council rates / land Tax from 0 to 7.7% ( % of what?)
- Appearing at Court/Tribunal + preparation from 0 to $55.00
- Annual Statement from 0 to $55.00
- Insurance Claim from 0 to $55.00

So every thing we negociated last year is gone through the window! As far as I am concerned, the only change "due to the new legislation" should be the Residential Tenancy Agreement Preparation fee that we have to pay in full. Or have I missed something?

What should we do? Can we change all the figures back to what it was before signing the new agreement, or just try to find a new PM? We are in Brisbane and the property is in NSW which does not make it easier!

Thanks for any suggestions.

 

[Propertunity]

What should we do? Can we change all the figures back to what it was before signing the new agreement,

They are probably sending out hundreds of new agreements to LLs......and it is probably the office junior doing it.

They will just be inserting their 'standard' charges because they are either too lazy to look up the old agreements, too incompetent, or too hopeful that you won't notice.

Just amend the new agreement back to the old figures you had before and send it back. They probably won't even notice you changed them.

 

[russellpeter]

very cheeky

I went to a grow your rent roll training the other month and one of the things the trainer told us was to get your owners to sign a new agreement every 12 months and keep putting up your fees. $2 to $5 pa on postage of add a new fee and half a % on management and send it out to everyone.

He said a lot of owners will just sign and send back

then send a letter reminding them

then call them

and if they still haven’t sent it back forget about it as at this point over 80% of your rent roll has had increases in their fees.


great way to up the value of the rent roll and cash flow.

as you can see I didn’t really agree with him and of the % fee but this is what some agencies will do.

don’t sign it and just continue on with their management if you are happy with their service. and see what happens they can’t increase the fees without you giving them written agreement and they will not want to lose your listing.

 

[chilliblue]

They are probably sending out hundreds of new agreements to LLs......and it is probably the office junior doing it.

They will just be inserting their 'standard' charges because they are either too lazy to look up the old agreements, too incompetent, or too hopeful that you won't notice.

Just amend the new agreement back to the old figures you had before and send it back. They probably won't even notice you changed them.

Remember to inital or countersign any changes made.

 

[Sez]

Contact them and advise them that they have made an error on your new management agreement. I would imagine that they have simply hoped you would sign, send it back and not notice. Have them send you a new agreement with your current charges and the one additional change, just so they know you caught them out!!

 

[twobobsworth]

Could be the carbon tax.

Seriously, I would question the ethics of your agent if they have just shot you out the new agreement with no explanation. I would be calling them to confirm and if it was intentional, move on with another agent.

Next thing you'll tell us there's a 90 day termination notice.