Please Help Very Confused Massive Letting Fees

Can anybody please help we just received our first bill from our estate agent and I almost fell off the chair, we are not even getting a third of what we need to pay to our morgues.
Here is the bill can anybody please help, holly molly
:confused:207 24/05/10 Title Search - New Property Murphy Boyden Real Estate 18.00
(Includes $1.64 GST)
413 24/05/10 Website Entry and Rent List Report Murphy Boyden Real Estate 66.00
(Includes $6.00 GST)
411 24/05/10 Lease Sign 31/03/10 Murphy Boyden Real Estate 44.00
(Includes $4.00 GST)
460 24/05/10 Letting Fee - New Lease Murphy Boyden Real Estate 1100.00
(Includes $100.00 GST)
464 24/05/10 Property Condition Report Murphy Boyden Real Estate 220.00
(Includes $20.00 GST)
204 28/05/10 Special Meter Reading Water charges 11/03/- 17/05/ Water Corporation 60.45
338 28/05/10 Mow & edge lawn & remove palm fronds Kalgoorlie Home & Lawn 99.00
(Includes $9.00 GST)
Total for all properties 1607.45 2166.66
481 *Management Fees 184.17
483 *Postage & Sundries 7.00
 
Can anybody please help we just received our first bill from our estate agent and I almost fell off the chair, we are not even getting a third of what we need to pay to our morgues.
Here is the bill can anybody please help, holly molly
:confused:207 24/05/10 Title Search - New Property Murphy Boyden Real Estate 18.00
(Includes $1.64 GST) pretty standard - done to confirm that you are the registered proprietor.
413 24/05/10 Website Entry and Rent List Report Murphy Boyden Real Estate 66.00
(Includes $6.00 GST) Pretty Standard
411 24/05/10 Lease Sign 31/03/10 Murphy Boyden Real Estate 44.00
(Includes $4.00 GST) Pretty Standard
460 24/05/10 Letting Fee - New Lease Murphy Boyden Real Estate 1100.00
(Includes $100.00 GST) Pretty Standard - usually equivalent to two weeks rent
464 24/05/10 Property Condition Report Murphy Boyden Real Estate 220.00
(Includes $20.00 GST) Pretty Standard - IMHO a little on the steep side though
204 28/05/10 Special Meter Reading Water charges 11/03/- 17/05/ Water Corporation 60.45 Pretty Standard
338 28/05/10 Mow & edge lawn & remove palm fronds Kalgoorlie Home & Lawn 99.00
(Includes $9.00 GST) Not sure about this one...
Total for all properties 1607.45 2166.66
481 *Management Fees 184.17
483 *Postage & Sundries 7.00

dettetynik, most of these charges are quite standard as fas as resi Leases go, only the figures differ between agencies.
Of course, you can negotiate any or all of these charges if you so desire - most though, just cop it on the chin as the agent will look you in the eye and claim that you are unable to alter thier standard contract :rolleyes:

They would have been listed on the Agency Agreement which you have signed (and most probably the agent will have made you initial after every fee and charge if they are anything like my PM!)
If you have signed the Agency Agreement, I'm not too sure as to what you are so confused about??:confused:

If it's any consolation, most of these fees are a one off at the start of the Lease so you *may* expect considerably more cashflow in subsequent periods...

Boods
 
This is why lenders only take 80% of rental as income for their serviceability, along with maintanence, rates etc.
 
Property Condition Report Murphy Boyden Real Estate 220.00

:confused:

What exactly are you paying the management fee for? Looks like they charge you for everything they do as well as charging the management fee!
 
@ boods well this is the first month we got our house rented, and let me tell you I honestly did not expect it to be like this.
I went back and looked at the agreement and yes we signed everything, but I guess because it is our first time we were not aware it is so high.

@ hobo-jo - yes there are so many fees, they ask management fees $184.17, guess we will learn as we go along.

boods may I ask the tenants we have in there only signed for 6 months, if they then decided to take it for another 6 months do we have to pay that fee again I mean the fee of $1100?

WE have just put an offer in to purchase another home in QLD, at the moment we live in Darwin, but as soon as we buy the other house I will be selling the house in Kal.
Honestly who can afford fees like this.?
 
I honestly did not expect it to be like this.
I went back and looked at the agreement and yes we signed everything, but I guess because it is our first time we were not aware it is so high.

Don't feel bad....you're very similar to most people on earth who also don't read and/or understand what they sign. Take comfort that you are in the vast majority.


Honestly who can afford fees like this.?

Only the people who sign the agreements authorising them.
 
I recall that there have been a number of threads on this site over the years about WA agent charges.

I know in NSW when I was looking for a PM, the agents who were managing the property for the Vendor offered to manage for me. They sent me their "standard contract" which had so many additional charges that I thought they must have considered they had a share in the property. I appointed a different firm which has done a pretty good job over the past 9 years at much more reasonable rates.
 
@ Dazz you are so right, but what could we do, the house was empty for a while.
I mean after it was trashed by my own child..........yep my own child trashed my home and left us with a $3000 bill in repairs and clean up.

It is a long story but I should have know better, but as her mum I felt sorry for her, lesson learned.

We will just move on and roll with the punches
 
although u clearly researched the investment property ins and outs very throughly u r in for some more surprises unfortunately,

the bank who lent u the money will want to charge interest on the loan, even though u signed the mortgage documents and agreed to the terms who could have guessed the amount would be so much.

Also unbelievably the council will send u a rates notice, and you will have to pay it and to completely knock u off ur chair you will have to insure the property as well so another complete shock, who can afford this stuff?
 
Sounds like you've got some dirty family laundry that probably doesn't need to be splashed over the internet. Seems like you know what the problem is, which is always the biggest step...now you just need to sort it out.

Good luck with it all. You'll be alot wiser with your 2nd acquisition in Qld.
 
Dette, your case illustrates the risk of buying regional property, whether resi or comm. Usually you get a choice of one PM, who is a resentful slacker looking after property for miners on 4x his income.....

We've been burnt for 110k by an incompetent mining town com PM in the last 12 mths. How did this happen? If your PM doesn't adequately document all property damage and lessee actions, your insurer has a pretty good case to reject your insurance claim.
 
PM fees can get nasty. While my local one was still willing to manage my old house, I worked out that their fees over a year added to 20% of the rent. Slightly lower in second years - 2 weeks rent to sign a new tenant, 1 week to resign an existing. Our local PM charges like a wounded bull for inspections too, watch for that one every 3 months. Sounds like you'll get it :p

As much as I would rather not own this IP of mine (I'd prefer the lump sum from sale to build a new house), self managing does work for me ... I have pensioner tenants so Centrelink collects their rent for me, at the fixed cost of $1.98 per fortnight and the rent turns up in our bank account as "centrelink pension" which doesn't look good but whatever :rolleyes: If that house doesn't sell before our new one is built I'm going to self-manage our next as well, which should be easy enough as we'll be right next door. Not helpful if you have a house in Kalgoorlie :)
 
I have ranted a couple of times about fees on fees that REA's here in canberra seem to charge. I believe in paying for good service, but when they have a 10% management fee and then itemise every little thing they could possible be required to do as part of the management and charge a fee for that too, they get to the point where they are just ripping you off.
 
Can anybody please help we just received our first bill from our estate agent and I almost fell off the chair, we are not even getting a third of what we need to pay to our morgues.
Here is the bill can anybody please help, holly molly
:confused:207 24/05/10 Title Search - New Property Murphy Boyden Real Estate 18.00
(Includes $1.64 GST)
413 24/05/10 Website Entry and Rent List Report Murphy Boyden Real Estate 66.00
(Includes $6.00 GST)
411 24/05/10 Lease Sign 31/03/10 Murphy Boyden Real Estate 44.00
(Includes $4.00 GST)
460 24/05/10 Letting Fee - New Lease Murphy Boyden Real Estate 1100.00
(Includes $100.00 GST)
464 24/05/10 Property Condition Report Murphy Boyden Real Estate 220.00
(Includes $20.00 GST)
204 28/05/10 Special Meter Reading Water charges 11/03/- 17/05/ Water Corporation 60.45
338 28/05/10 Mow & edge lawn & remove palm fronds Kalgoorlie Home & Lawn 99.00
(Includes $9.00 GST)
Total for all properties 1607.45 2166.66
481 *Management Fees 184.17
483 *Postage & Sundries 7.00

WOW - thanks for sharing! Umm...why did they charge you for the LEASE sign?? Once they have it rented - they take it back and can use for another property? Was your Lease sign "unique"?

Entry Condition Report - LOL - (don't know about WA real estate agency laws....but in Qld, they have to provide you with a copy as part of their duties...you've been charged a let fee...which should include this)

It's like ordering a salad sandwich and getting charged for lettuce on top.

Internet listing?? IMHO: money grab - what are they actually doing for the Let Fee?? Two weeks at that too!

Water meter reading?? I have been told this is a "specialist job" LOL - the way you counter this argument in case of future disputes - TAKE A PHOTO OF THE METER READING! all digital cameras have date stamps on it!!

Double check if you will get charged a "Lease Renewal Fee" - sound like you will, given they way they have already charged you....now that you have a tenant in place - start looking for another property manager with more reasonable rates.

Just because an agency agreement has all these terms in it, doesn't mean you can't cross it off or amend it...

I feel for you , that was a big chunk out of the cashflow...
 
From my experience the management fees vary widely depending on the location. The PM managing my inner city IP charges me a much lower fee percentage wise than my out of town PM to the point the dollar amount is almost the same for both IPs, yet the rent for the inner city IP is more than double the other. I've attributed that mainly to competition and the rents are high close to the city so a lower percentage still works out for them.

I do believe my out of town PM is worth her money though as she does an excellent job and the area is a bit rough and I've had bad experiences with other 'cheaper' PMs. Guess you'll need to work out if yours is worth his money.

Do you know what the going rate is in your area? If everyone charges like that then there's not much you can do about it.

Check your management agreement how much notice you need to give to the PM if you want to get out.
 
My only fees to PM are 7% of weekly rental, plus one week's rent to source and install a tenant (plus GST). PM won't touch the smoke detectors to we have to pay extra at the start of each lease to an independent company.

Can't believe what agents charge in WA.
Marg
 
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