What does a Let Fee cover?

[kathryn d]

Who signs a long term contract with a PM company? I've just experienced my first issue with a young PM who I was given when my previous one left. I've been with this company for about 18 months with no issues until now (possibly due to their luck also in that I had a good tenant). They've given me rubbish service the last few months so I'm off.

To find a new PM, I have gone on the recommendation on someone who uses a different company who has a PM who has been around for a while and she is an older lady. She's been so helpful to myself and the person who recommended her to me. The first question I asked her, was not what she charged. The recommendation of her by someone who has been using her for a few years and the fact she's older and more experienced and gave me exactly the information I was looking for is the reason for me choosing her.

If she leaves somewhere down the track and I'm handed a 20 year old who gives me the same issues as the previous company, then I can leave there too. But hopefully, seeing as she's been around a while, as far as I know, and not new into the industry, she'll be around for some time.

Therefore, in my opinion, the fee is not the main reason for selecting an agent. It reminds me of the people who get on here and complain that their accountant didn't do all they should have. When asked who they used, they say they used H & R Block and paid $100. Say no more...

When you change PM agencies, do you have to pay any fees? Or does it start off as a rent percentage?

BTW..I left a chartered account who charged the $100 and went to H& R Block, we get much better service and is closer to $2k a year.

 

[Luv2Travel]

When you change PM agencies, do you have to pay any fees? Or does it start off as a rent percentage?

No, no fees. They just take their percentage when you start with them, so it doesn't cost anything to change.

BTW..I left a chartered account who charged the $100 and went to H& R Block, we get much better service and is closer to $2k a year.

Ok, the "you get what you pay for" is there there but in reverse with the company and fees.

 

[kathryn d]

Ok, the "you get what you pay for" is there there but in reverse with the company and fees.

I'm just trying show, because one person has good luck with a certain company, another may not feel they are getting the same result.


Thanks for the info on changing PM fees

 

[Ajax]

I just had a Sydney inner city terrace relet.

Paid a letting fee of one weeks rent ($630) + gst of $63, + a tenancy fee of $30 + $3 gst and got a credit of $15 from tenants for lease preparation fee.

Also paid an $80 internet adverising fee with $8 gst added

Total $799.

When you consider that the property was empty for 18 days (previous rent of $600/week lost)=$1542 and that this is the second time the property has been vacant this year it all starts to add up (equal to about 7 1/2 weeks rent).

Maybe the standard assumption of 2 weeks vacancy a year is a bit optimistic (with all these other fees added in).

 

[Luv2Travel]

Maybe the standard assumption of 2 weeks vacancy a year is a bit optimistic (with all these other fees added in).

I just had tenants break a lease 2 months before the end of it. They paid rent until new tenant found (which was quick anyhow) plus all re-letting costs. Saves me paying them in January now and I didn't miss a day's rent.

 

[noisuf]

Quick update, they're not budging on advertising fee as their argument is they paid out of pocket for the featured listing.

I'm putting all this down to hard lessons learnt...

At least I'm on a cheap commission %.

 

[womble66]

Quick update, they're not budging on advertising fee as their argument is they paid out of pocket for the featured listing.

I'm putting all this down to hard lessons learnt...

At least I'm on a cheap commission %.

That would be the final straw for me with that PM................
Give them the written notice required in the MAA and say goodbye :>)