One week rent as "finders fee" ?

[monster24]

Hi there,

today we got the monthly statement from our PM to see that one week rent was deducted as a kind of finders fee. Okay, I have signed the contract but this charge was not mentioned to me explicitly. Of course I didn't study it in detail so it's kind of my mistatke. However, I think they need to mention any additional fee and not hopping that I don't ask !!

I do really feel ripped-off. Is this common practice to charge this kind of fee ? I am really not happy with that and wonder what you guys think...

Cheers
Thomas

 

[Belu]

finders fee for what?

 

[buzzlightyear]

Letting fees are standard for PM's. 1 week is the minimum, I have seen 1.5 & and even 2 weeks letting fees.

I could almost guarantee that it would be outlined in your agreement, it is generally the second item after management fees.

 

[monster24]

for finding a tenant ...

apparently it's in the contract - 1 week rent.. but they haven't explain it to me...wow, even 2 weeks rent are common ? But I don't like it not to be told what I have to pay .... that's not good practice ...can I break the contract with PM at any time or are they other fees involved ? The lease with the new tenants are for 6 months?
Cheers
Thomas

 

[Ausprop]

can be 3 weeks in WA for a 12 month let!

 

[buzzlightyear]

for finding a tenant ...

apparently it's in the contract - 1 week rent.. but they haven't explain it to me...wow, even 2 weeks rent are common ? But I don't like it not to be told what I have to pay .... that's not good practice ...can I break the contract with PM at any time or are they other fees involved ? The lease with the new tenants are for 6 months?
Cheers
Thomas

Agree that you should have been told, but you will find many more frustrations with your PM in the fuure. Chalk this down to a learning experience.

Most contracts with PM do not have any break fees, usually some sort of formal notice.

Check in your schedule of fees, if your tenant signs another agreement iat the end oif this current lease, whether you pay a lease renewal (wording may differ) fee? This one I would not be happy about. Sort of a defacto re-letting fee without them actually re-letting to another tenant.

Welcome to the world of residential IP ownership

 

[Rixter]

Monster the PM has done nothing wrong and you signed the agreement. Its not their fault you didnt read it. They are not going to hold your hand and take you though every sub-clause to spell it out......

Look dont get me wrong Im not talking sides - It is a standard Qld management agreement.

Letting fees are just a cost of doing business. Get used to it. Its not going to break the bank. If it is then I think you may need to address your suitability towards being in business in the first instance.

This will be just one of many surprises for you...Focus on the big picture, not the day to day "glass half empties" you are sure to experience more of along the way.

As Buzz says welcome to the world of IP Business.

 

[Xenia]

They cannot charge additonal fees that are not mentioned in the contract.
If it was in the contract and you signed it then you cannot cancel the contract on the basis that you were not verbally told. There dosent need to be any verbal communication for a contract to be binding!

You may try approaching them to see if they would waive the fee on the basis that there was no verbal communication.

 

[s_t]

They did tell you - by writing it into the contract...... There is no other proper way of telling you!

Can you break the contract? Hmmm, now where do you think you might have to look to find that out?

Do you normally sign things without reading them? If so, can I have your address please? I'd like to pop around with a proposal and some documents

for finding a tenant ...

apparently it's in the contract - 1 week rent.. but they haven't explain it to me...wow, even 2 weeks rent are common ? But I don't like it not to be told what I have to pay .... that's not good practice ...can I break the contract with PM at any time or are they other fees involved ? The lease with the new tenants are for 6 months?
Cheers
Thomas

 

[Buddybee]

I do really feel ripped-off. Is this common practice to charge this kind of fee ? I am really not happy with that and wonder what you guys think...

Cheers
Thomas

While I appreciate you feel ripped off and unhappy - the person you should feel unhappy with shouldn't be the agent - it should be yourself for not reading the contract properly!

Put it down to lesson 1, and move on. Perhaps you should read your contract thoroughly and ask your agent questions on items you need clarified.

Cheers
Buddybee

 

[buzzlightyear]

can be 3 weeks in WA for a 12 month let!

Everyone is making far too much money in the West!

 

[Rixter]

Everyone is making far too much money in the West!

The WA Govt changed the laws so landlords cant charge the tenants a letting fee any more to try and recoup the costs.....All it has done is put pressure on landlords to increase the weekly rents to help cover costs that way.

 

[chrispy]

It was a month's rent to let my commercial office, presumably because the lease is for 3 years with an option of a further 3 years. Plus advertising costs of course.

Normal business expense I am afraid...welcome to world of property investment

Chris

 

[Xenia]

Everyone is making far too much money in the West!

There is no such thing! This is like saying people are far too healthy.

 

[Pushka]

It is in the contract, and ours is 1.5 weeks. How can else they cover the cost of opening, intervewing, and establishing people's reliability? I have more of an issue for the costs they charge in collecting the rent and general property management - we seem to have different ideas on what a PM should do.

 

[kyliej]

What you need to remember is that Property management is a business and the individual companies need to make enough money out of managing their rent roll to pay for salaries and over heads. if they dont make enough money they have to employ inexperienced staff, which untimately results in mis management of rental properties. Trust me I do not know many property management companies that are making millions of dollars profit each year . most are just making enough money to pay costs.

 

[Alabex]

What you need to remember is that Property management is a business and the individual companies need to make enough money out of managing their rent roll to pay for salaries and over heads. if they dont make enough money they have to employ inexperienced staff, which untimately results in mis management of rental properties. Trust me I do not know many property management companies that are making millions of dollars profit each year . most are just making enough money to pay costs.

Great point, i think that it is sometime forgotten that property management is suppose to be a professional service. PM are in the business too = they need to make a profit or there is no point!

 

[WASP]

Everyone is making far too much money in the West!

http://www.news.com.au/perthnow/story/0,21598,23931386-2761,00.html

A NEW study has found Perth is growing at the fastest rate of any city in Australia's 200-year history.

Monash University population expert Bob Birrell said Perth's population would increase by 43 per cent between 2005 and 2021, taking the number of people living in the city from about 1.5 million to more than 2.1 million.

Dr Birrell said that would constitute the fastest rate of growth of any Australian city, at any time.

"This is absolutely massive, completely unprecedented,'' Dr Birrell said.

"It's a massive task for building infrastructure.

"Perth is already running out of water, plus there will be huge problems with congestion as there's pretty much a one-to-one ratio between new arrivals and vehicles.''

Over the same period, Dr Birrell said, Melbourne's population would grow by about 25 per cent and Sydney's by 18 per cent

 

[Mamaof3]

letting fees are one of the standard fees that are charged with PM's....this must be your first rental i'm guessing? If so just take it as a learning experience. 1 weeks letting fee is quite good because alot of the PM's here in Adelaide charge 2 weeks.

we weren't happy with our last PM and simply told her so (in a nice way that is) and she wasn't too impressed to let us go but there'd be no point for her to make us stay and continue to use her...so she let us move on....there weren't any fees involved but i have heard of some PM's charging something so if you want to go down that track then best to confirm these fees beforehand (see if there's anything in your contract)

good luck

 

[MissMuffitt]

we weren't happy with our last PM and simply told her so (in a nice way that is) and she wasn't too impressed to let us go but there'd be no point for her to make us stay and continue to use her...

good luck

I have just sent a letter to our PM in Agnes Water. Basically saying the same thing, just not happy with her. I asked for 30 days, but she has made me stick to the original contract of 90 days. That is not a problem, I just thought that I would ask on the off chance of an earlier out!. Problem is now that the tenant that should have signed a 6 month lease, and crossed that out and put in 3 months is due to sign another lease (6 months I hope!) but "they are not sure what they are doing yet"...(wording from the PM)

Again, it's a wait and see....