New reletting fees introduced

PM has been managing our 5 properties for 6 years and we pay them approx. $200 a month in management fees. They sent out a letter to all landlords stating they were introducing a $55 fee to re-sign existing tenants.

I have just been slugged for 4 leasing fees, one fee out of another property's rent.

My question is - can they charge this fee? I was under the belief that in Victoria you cannot charge a fee unless it is set out and agreed to/signed on an authority.

When I asked the PM's boss I was told "it is was it is".

HELP!!
 
$200/month per property, or across all 5? If it's all of them that's very cheap! :eek:

In regards to your question, check your management agreement.

Some will state that new fees may be introduced if landlords are advised in writing, others you will need to sign a new authority. Best practice would be to have you sign a new authority.
 
it's not a shocking deal, in WA it can be 2 weeks for a relet. On a karratha IP that could be close to $5000

.WA is more expensive than across the country
.Even if it's not expensive, they may not be able to charge it if there's no provision in the contract.
 
Fees seem to be going all up all round. The industry has to, with all the legislation and paperwork now required by a real estate to maintain. Its quite understandable. I am expecting costs to rise on my IP at some stage.
 
If they've been managing your properties for 6 years and have not increased fees in that time, there must come a time when increased business expenses have to be passed on.
They did send you out a letter.
If you do not agree with it, not much else to do apart from take your business elswhere, but it does not necessarily mean you will get a better deal elswhere.
If you're happy with their service and overall their fees are competitive, you should be satisfied and stay.
 
If they've been managing your properties for 6 years and have not increased fees in that time, there must come a time when increased business expenses have to be passed on.
.

Hmmm........during 6 years, there is bound to have been rent rises. This in itself gives the agency increased fees, as the fees are usually percentage based.
 
Hmmm........during 6 years, there is bound to have been rent rises. This in itself gives the agency increased fees, as the fees are usually percentage based.

Lets say these 5 properties were $500/week rent each, at $40/month per property, that's a measly 1.8% management fee......
Even if the properties were renting at just $200/week, that's still only a 4.6% fee.

I'm assuming the $200 management fees covers all 5 properties.
 
Fees seem to be going all up all round. The industry has to, with all the legislation and paperwork now required by a real estate to maintain. Its quite understandable. I am expecting costs to rise on my IP at some stage.

But are property owners and REAs communicating that to their local politicians?

Responsible tenants too must realise that they are paying extra - all of that regulation costs somehow somewhere.
 
Lets say these 5 properties were $500/week rent each, at $40/month per property, that's a measly 1.8% management fee......
Even if the properties were renting at just $200/week, that's still only a 4.6% fee.

I'm assuming the $200 management fees covers all 5 properties.

It's more likely to be 5 x $150pw with a 6.6% management.

Based on that assumption and presuming they are in an area with high demand, then the properties may have been left under-rented for a long time - which putting up the rent to market will give both the Agent & the owner an increase in income.

Of course, I could be way off & they may be in some backwater & getting a good income for what they are too.
 
Four of the properties are 2 bedroom units walking distance to the centre of town, the other is a 4 bedroom house which we bought for us to move in when the kids went to the school around the corner. As it turns out this will not happen as the kids go elsewhere.

While I appreciate everyone's comments what I wanted to know was is it legal for the REA to introduce a new fee - not increase a fee - which was not stated nor signed for on our authority. If we allow this to happen, what other fees can REAs introduce and deduct from our rent, without our approval?

Will an auditor ask to see signed authorities approving these fees being charged?
 
Hmmm........during 6 years, there is bound to have been rent rises. This in itself gives the agency increased fees, as the fees are usually percentage based.

Bingo. I've seen rents rise by almost 50% in some areas in the last 6 years. That's a 50% increase in management fees for the agency.

I wouldn't go so far to say that the industry is being de-regulated but Fair Trading changed the rules recently for agents annual CPD points. Made life a little easier to get the points but they still charge a fortune for the annual renewal fee.
 
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