Property Manager wants 6 mth fees up front

[Alabex]

Hi Red Ten

Yes, they are entilted to their portion of the rent, the contract you have with them binds them to an agreement to manage the property regardless of when and how much the tenant has paid.

they still need to manage the property. If they do not and there is a breach of contract you have the rights to cancel the agreement and the money paid to them needs to be refunded. It is in their best interest to do the right thing by you and by the tenant. Sounds like an awesome tenant!

Agreed with xenia

.. we have lots of tenants that pay in advance and the fees come out of rent paid... never been questioned on it. we often talk to the landlords about keeping a portion to cover things like rates, insurances, levies etc that we pay on their behalf. Most are happy that we think about it and look after it for them... some even ask us to hold the whole 6 months rent and pay it to them in monthly installments to assist their cashflow.

 

[Red Ten]

Thanks Everyone!

Will not fight this... agent gets fees up front! All the best, Red Ten.

 

[lura]

If you want to be paid all the monies up front - the agent is legally permitted to take their fees from this. This is the case legally between you and your agent.

Legally between the agent and the tenant - the agent is not entitled to their fees until such time as the tenant has "used" up their time. If you really want to get technical, even on a daily basis. So, if the tenant got into financial trouble one month down the track and asked for half their money back...you have to give it back because they have not breached their contractual terms.

Following from this then, even the owner is not entitled to the funds yet...so, just keep your fingers crossed that your tenant doesn't ask for the monies back.