Reasonable property management charges

M

mlandon

I have recently had a tenant re-sign for a 12 month lease. My prop. manager has charged me $33 for re-lease and an additional charge for $506 for something. Same tenant re-signed, rent went up moderately in line with market. My understanding is, if a new tenant is signed there will be a charge of roughly 1 weeks rent, but when an existing tenant re-signs charge should be for prep of new lease only. My question is - What is a reasonable charge for this re-lease?

Cheers,

Mike.
 
Not from your area so I can't comment on what is common in your area but WOWEEE!!! Find out what that $506 is for, check your authority that the charge is in there (because if it is you signed for it and can't do much). If you did sign for that charge then re-negotiate your charges. The re-leasing fee of $33? I've heard of people charging far more than that so I can see how that would work :).
 
My management agreement states that one weeks rent is payable for 12 month renewel, which in retrospect is ridiculous for a renewel, I will have to get this changed. But my question was - What is a reasonable charge for this? A ballpark number is all I am after.

Cheers

Mike.
 
I only charge an initial letting fee to new tenants not re-newal but companies I have had dealings with in the past charge between $50 - $150 for a new lease to existing tenant. I would agree to something in between those areas if it was going to be charged :).
 
mlandon said:
My management agreement states that one weeks rent is payable for 12 month renewel, which in retrospect is ridiculous for a renewel, I will have to get this changed. But my question was - What is a reasonable charge for this? A ballpark number is all I am after.

Cheers

Mike.
Click to expand...

HI Mike


$0 is reasonable

it takes less than 5 min to do up the paperwork and post it out.

maybe the cost of a stamp
 
russellpeter said:
HI Mike


$0 is reasonable

it takes less than 5 min to do up the paperwork and post it out.

maybe the cost of a stamp
Click to expand...

5 minutes??? are you kidding me? you mustn't be doing it properly! What about the phone calls to the landlords and tenants, and the follow up phone calls because they wont call you back, and what about the time taken to chase the tenants and the landlords to get them to return the lease, and the preparation of the notice to increase rent if applicable??

$506 is extremely excessive i agree and so i one weeks rental and while i dont charge a re-leasing fee i also wouldn't disagree with a small charge of $100-$200 for a re-leasing fee. It certainly takes more than 5 minutes of work!!
 
my mum property in sydney doesnt charge a renewal fee....i think....


I know for sure that if there were to find a new tenant then it will cost you 1 weeks rent + advertising fee.

If the existing tenants signs a renewal contract for 6 or 12 months then you shouldnt be charge for it at all.

My recommendation is ring up other real estate agent and also the fair trading.....

They really havent done that much of the work.... if you go and tell them you'll be moving to another new manager ithink they will re-think abt charging u.....
 
There is a bit of work involved in re-leasing to an existing tenant, however, perhaps when asking for a fee reduction in this area you suggest to your PM that instead of creating work by calling and sending out leases, re-doing them when lost in the mail or lost by tenant etc. they make an appointment with the tenant to come in to sign the new lease? This cuts their work time down A LOT, they will save time doing it this way and as a result you should be charged less :).

I don't think you would go too well calling fair trading as you did sign the authority for this charge. But as Leeman said, if you tell them you are thinking of changing agencies because of it I think they will change their fees for you pretty quickly :D.
 
Reletting fee

I can understand a cost for the time for a new lease (esp since you can no longer charge the tenant for 50% of the lease in NSW with the recent changes) but a 1 week letting fee? Simply not on - sure there is some time ie 6 monthly inspection & a bit of to-ing & fro-ing. I might just have to hike up the charges for my services.
 
Management fee of 7.7%: fair?

Hi all

Have just bought (from my mother, now in a retirement village) a villa in sunny Woy Woy NSW. Local agent has quoted me a mgmt fee of 7.7% plus $7.70 per month admin fee (expected rent $350 pw). Is this the going rate? :confused: Also quoting a leasing fee of 1 mth's rent but increased to 2 mth's rent if a 12 mth lease is signed which seems a bit steep ? :eek:

Thx in anticipation
 
melbinman said:
Also quoting a leasing fee of 1 mth's rent but increased to 2 mth's rent if a 12 mth lease is signed which seems a bit steep ? :eek:
Click to expand...
Cue Dazz... something about it not really being a lease. Comm is where the real leases are at.

No even 1 month's rent leasing fee?? Gilla mate
 
of course they put all those fees in, they hope the customer doesnt know better
If they get the owner to sign it unaltered, whoopee,
 
melbinman said:
Hi all

Have just bought (from my mother, now in a retirement village) a villa in sunny Woy Woy NSW. Local agent has quoted me a mgmt fee of 7.7% plus $7.70 per month admin fee (expected rent $350 pw). Is this the going rate? :confused: Also quoting a leasing fee of 1 mth's rent but increased to 2 mth's rent if a 12 mth lease is signed which seems a bit steep ? :eek:

Thx in anticipation
Click to expand...

Wow those fees are massive! I am not overly familiar with NSW pricing structures but i believe they are fairly similar to Melbourne... one months rent for a leasing fee??? wow i thought my 3.3% of the annual rental was on the high side!! And increased to 2 months rent for a 12 month lease?? That is just crap! Most lease agreements tend to be 12 months anyway and a 2 month leasing fee is highway robbery! over $3k to lease a villa unit? you have to be kidding.. they actually seem so ridiculous i have to ask are you sure you have understood the fees correctly?? $7.70 admin fee is on the high side... most agents generally charge $3-5 for the admin fee. 7.7% management fee is reasonable... its what i charge but there are agents who will drop their pants and charge 5.5%

If i was you i would be doing a ring around and compare the fees with other agents...
 
I'm giving out 5.5% ongoing fee for managing my property in melbourne and 2 weeks rent on signing a new lease. I havent had to experience re-signing leases yet so not sure about that. 1 week rent for leasing? Thats pretty good....

Maybe its time for me to be looking for new PM's but to say my current one definitely earn her keep. Hard worker for sure
 
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