PM increasing commission without notice?

[daniel cunningh]

Hi guys.

Just anonther quick question regarding PM's.

I remember years ago when i purchased my IP signing an agreement with the PM indicating amount of commission etc.

After just reviewing a few of my monthly statements i have realised that they have increased their commission without notifying me.

Firstly is this legal or do they need to get me to sign something agreeing to this increase.

Secondly if this is not legal can i claim the money back off them.

Cheers!

 

[RightValue]

Firstly, what has increased, the dollar amount of their commission or the percentage?

If it is the former has the rent increased during this time?

Secondly what is the dollar amount (per month) by which they have increased their commission?

How much in total is the additional commission that they have deducted.

Finally after you ask them to rebate the amount and if they refuse to ... is that amount worth the probablly 8 hours of your life you will spend fighting this thing with them???

Even if they rebate the overcharge I would just take the property off them and put it with another agent .. after all, would you really want to leave your business with a company that just ups their fee percentage even if they agree on going back to the lower amount.

cheers

RightValue

 

[daniel cunningh]

hey rightvalue,

When i first rented the house through them the commission was 7.7%.

After reviewing my latest few statements it appears they are charging 9.35%.

On $285/week they are taking $26.65 which is a lot higher than 7.7%.

So equates to roughly $20 extra per month.

Its a fair increase and the only thing i ever signed outlining their costings were the original contract to use them (i think it was a 'Form 20a' or something).

Thanks for your help

 

[travelbug]

it appears they are charging 9.35%.

So ARE they taking 9.35% or does it "appear" that way?

Is this just the management fee (including GST) or total?

On my statements they have management fee, sundries and postage, GST. 3 things all itemised separately.

Look and let us know. It will be easier to see the problem (if any).

 

[daniel cunningh]

It is 8.5% plus gst. Thus 9.35% in total.

They are taking 9.35% of the weekly rent as opposed to 7.7% of the weekly rent when i first went with them.

And yes there is $5.50 on top for postage etc

thanks

 

[jaycee]

So they went from 7.7% + GST to 8.5% + GST (which is what I was paying 2 years ago) wihtout telling you

I have no answer for you and certainly no defence for the proeprty manager.. common sesne tell me that in most cases one would tell their customer of price rises.. particualrly if you've they signed up for a set price but what Ido I know, if I thoguht that knew anything about anything, I'd be a qualified REIWA qualified agent

 

[JustRent]

That is very ordinary form...any changes like this should be disclosed to the owner.

 

[dragonlady309]

The Managing Authority you signed would have stated 7% plus GST, so one would expect it to stay at that. I'd certainly be asking why this had gone up. A bit of complacency on the PM's behalf perhaps???

 

[lura]

Yours is a Form20a - so it is a Qld based agent.

They will need your authority in writing prior to increasing the rate.

Excuse my rudeness for a bit - generally I'm really nice but I am ultra annoyed at the actions of some agents - and I'm sure they are the same agents that would do this kind of things...I should calm down by the end of the week.

You should technically, receive a letter to advise of the increase with a spot for your signature to authorise the increase - this document will then be added/filed with your current Appointment to Act.

Or

They should send you out a new Appointment to Act with the new rates.

If they are not open about this, start to question your other charges.

I just had one client recently come across with invoices every month - unauthorised and without their knowledge - after lengthy chasing of invoices and liaising with tenants - half those fees were not applicable to their property.