Bad Property Manager asking for marketing fee

My previous property manager did not do their job properly. It’s been 2 weeks since last tenant moved out but the cleaning wasn’t done yet. Exit inspection only happened 5 days after tenant leave and a few other bad experiences over the year.

They have been struggling to find new tenant for me and was pushing for lower rate. I happened to find a couple friends that want to move to the area and right away but due to the delay of the exit inspection etc, it has been pretty much 2 weeks loss of rent for me.

I spoke to the previous manager yesterday saying I have new tenant starting and will no longer need his service. He of course tried to warn me but that then moved on to him shouting over the phone that I sacked him and saying not nice and unprofessional words including continuing asking when I wanted to pick up the key and that his job is done as he has been sacked etc. I politely told him that his job hasn’t finished yet, and as part of previous tenancy agreement, he still needs to make sure the cleaning is done at the very least) . After trying to calm him down and explaining to him how bad the service I’ve been receiving, he had to confirm with his staff the facts and agreed with me that it has taken longer than it should be. He however wanted to charge me $250 for having marketed my property (realestate premium ad). I understand that he may have incurred the fee (not sure if the amount is correct) but due to their inefficiency and bad performance, I at least have lost 2 weeks’ worth of rent (approx. $1000). Do I have to pay for this marketing fee? I consulted with couple friends, they all think given my opportunity cost loss of rent is of a much bigger amount, I have the right to not pay him.

Has this ever happened to you? What do you think I should do? Any advice is greatly appreciated.

 

Refer to your MAA (managing agency agreement) for the period of notice you must give to cancel the agreement. Many PMs have 90 days unless you changed it when originally signed. If unchanged, then the PM may be entitled to legally charge you advertising.

 

Did you ask the previous property manager to re let the property for you ? if the answer is yes , have a look at your Managing Agent's Authority to see what you agreed to pay for advertising expense for the property when it is vacant with the agent who is trying to re let the property on your behalf.
Technically speaking if your previous managing agents agreement stated that you were to get x amount rent and this time around you are seeking more rent or different rent, then the agent should have drawn up a new agreement as the rental is different -therefore you can argue you that you are not paying the $250 as another agreement should have been made.

Everything else is relevant etc- its the managing agents authority form that is key here

 

You do not need a new Management Agreement every time the rent changes.
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Otherwise agreed- Although you may feel that the agent should have waived their fees in light of the poor experience, they have a legal entitlement to anything listed on the Management Agreement.

 

Agree with Tom, a new agreement is not required and if it is listed on the management agreement they have a legal entitlement to the cost of marketing the property even if they were not able to secure a tenant for you.

 

For example if the old management agreement form had an asking rent of $200 p.w and then the agent then advertised the property and achieved a rental of $210 pw, then a new management agreement should have been drawn up. (THATS FACT )

 

hi @tajid, as my colleagues said, it depends on the management agreement that you have in place, but a standard one was used, you will find that they are open ended - ie until either party gives X notice to the other. Also, regarding rent it would nominate an initial rent amount but also say something like "OR as otherwise instructed by the principal". This is why you don't need a new agreement every time the rent changes.

Regarding not paying the marketing fee and them not doing the cleaning... again, if you look at your agreement it should say after giving notice that both of you need to fulfil your accrued and incurred obligations. So they need to do everything until the handover day including giving you your property back as they found it, paying all the bills, chase repairs etc etc but unfortunately you also have to pay for their marketing costs.

Regardless... can I just say my view? It's not ideal... they weren't the greatest and you lost a bit of money. On the other hand you found tenants yourself and you'll save some money... Being slow I am afraid is hard to prove that they weren't their job. So cut your losses and move on. You do your part and hopefully they will do theirs, too...

- Best of luck.

 

If you can prove this with any correspondence I wouldn't pay it, let them waste their time in some tribunal and possibly not get the money out of you. How would the real estate employee or owner like if they lost $1000 out of their wages, you've engaged them to do a job for you and they haven't for-fulled their duty because of that it's cost you money. If what you've said is true, the agent should have cut their losses after making you lose money not the other way around. My knife cuts both ways when it can.

 

Ahhh no...
Couldnt be more wrong

 

If the agent states in the management agreement that the rent is ie $200 per week (Subject to change pending market conditions) a new agreement is not required. Regardless, price can change as per written instruction such as email. This is based off a QLD agreement.