Pay Letting Fee?

My property manager said I will still have to pay a weeks rent for a letting fee even though I have already found possible tenants myself without any advertising yet. We have not starting any lease or anything but the PM is looking after another property as well and I mentioned to them I would like them to manage my PPOR which is soon to become an IP as I travel overseas.

Is it normal for a PM to make you pay a weeks rent for a letting fee even though they don't have to do any advertising and finding the tenants? They will have to do all the usual things like checking references for the tenants etc and I will be paying them only 5.5% for management fees.
 
My property manager said I will still have to pay a weeks rent for a letting fee even though I have already found possible tenants myself without any advertising yet. We have not starting any lease or anything but the PM is looking after another property as well and I mentioned to them I would like them to manage my PPOR which is soon to become an IP as I travel overseas.

Is it normal for a PM to make you pay a weeks rent for a letting fee even though they don't have to do any advertising and finding the tenants? They will have to do all the usual things like checking references for the tenants etc and I will be paying them only 5.5% for management fees.

5.5% with 1 week letting fee is not a bad deal considering that many agents charge 1.5 weeks letting and some with additional advertising costs (depends what your place rents for I guess).

The agent will still need to do a bit of work lodging the bond forms and completing the lease paperwork so I would not begrudge them the entire fee.

If you still have an issue with the fee then talk to your pm, usually they are very receptive to landlord concerns and may do you a deal to keep you happy.
 
ok thanks for the feedback. I don't have a problem with them charging me the fee as long as it's the normal thing to do as I do know another PM who will charge 5.5% as well but I would rather go with the first one since they already have my other property.
 
Is it normal for a PM to make you pay a weeks rent for a letting fee even though they don't have to do any advertising and finding the tenants?

It is the "normal" thing - yes. Their standard agency agreement terms would say so.

HOWEVER, when I've found my own tenants (usually people who are friends or relos of friends, dropping in to see the property mid-reno), then I've asked my PM if they will waive their 1 week's letting fee, and each time they've agreed.
 
It is the "normal" thing - yes. Their standard agency agreement terms would say so.

HOWEVER, when I've found my own tenants (usually people who are friends or relos of friends, dropping in to see the property mid-reno), then I've asked my PM if they will waive their 1 week's letting fee, and each time they've agreed.

ahh, ok I see, that is the info I was looking for. Well I guess it's not a big deal just one weeks rent but still might be worth asking them to drop it or even see what the other pm will do.
 
With this, if the owner has found the tenant and we as agent still have to do all the checks,lease prep, etc we would only charge 0.5 weeks let fee. Go back to the PM and see what you can negotiate.
 
Haggle - especially if you haven't actually signed an agreement yet.

And be happy - our local agent charges 2.2 weeks and 9% odd with a minimum for low rent, so 15% for me. 1.1 weeks to resign a tenant. Plus $35 per inspection. If it wasn't 'work' and expensive to get the licenses I'd be tempted to start my own PM business.
 
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