Lease renewal fee

Discussion in 'Property Management' started by oneone, 7th Jul, 2017.

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  1. D.T.

    D.T. Specialist Property Manager Business Member

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    All of mine do. And so do all investors I know in WA , SA and act.
     
  2. oneone

    oneone Well-Known Member

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    sorry forgot to mention the rental apartment is in NSW
     
  3. oneone

    oneone Well-Known Member

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    quick update, so PM just came back and said they'll waive the renewal fee. so Pat, I think you'll have a chance there

    great as I don't really want to move if there isn't a need. but don't want to fight this battle every year either...
     
  4. Wealth Effect

    Wealth Effect New Member

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    Why not just get to know the tenant and build a relationship with them yourself? If the tenants are reasonable people, pay on time etc. why pay an agent? Don't you want to get to know the people that are in your multi hundreds of thousands of dollars investment?
     
  5. dabbler

    dabbler Well-Known Member

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    Because a lot of people just do pay.

    Some will get irritated when they wake up to what is going on down the line, others never check or do not care.
     
  6. dabbler

    dabbler Well-Known Member

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    Absolutely not, what purpose does that serve ?

    It is an arms length business transaction.
     
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  7. splatters

    splatters Well-Known Member

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    I emailed the PM and was told that my fee was already reduced (which it wasn't) but that she would have to speak with her team leader if I wanted to change it. So I have said yes, I would like her to chat to the team leader. The reletting fee is more than the extra $5 per week rent that was agreed to.
     
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  8. Stoffo

    Stoffo Well-Known Member

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    Seems it is the way everything is going:confused:
    Service fee's :eek:

    Imagine if you went to buy petrol, oh that's $1.20 per litre PLUS the refining/distribution/storage/safety/service charge & fuel levy & Govco charges, total due is $1.98 THANKS o_O

    Break down every part of the annual service, put a price on each part and charge for each step used "in addition" to the now reduced annual fee :rolleyes:
    Total is now 40% higher, and we can justify this with 40 pages of generic paperwork :p
     
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  9. 10773

    10773 Member

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    I'm sorry to hear that you have been stung with a $400 renewal fee. Being a property manager myself, I can't justify a $400 renewal fee. We charge $99 lease renewal fee and this is a standard fee for all our owners.
    Agreed with the comments it is becoming more and more frequent to charge as there is more work involved than what is just seen by owners. But everyone has the right to negotiate and get the best deal. I have also had the mindset, there is no harm in asking, this goes for tenants as well. But I would always advise to check the management agreement and make sure all the fees are correct.

    Agreed with Andrew, it is always not best to go with the "cheapest" management fees etc as this could point to poor service and be in the same position where you started. More than happy to help or answer any more questions if you need.

    Samantha Ellis
     
  10. Big Will

    Big Will Well-Known Member

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    Depends on state and agency but for our house in Brisbane we don't pay a renewal fee and we also don't petties either.

    Our rent is paid bi monthly with no distribution charge.

    You negotiate what the agent will agree to, this agent our family has been dealing with for ages and they have a number of properties with them so they know if they don't look after us we will move. In saying that we are happy with their performance hence why we have all the families properties in the area with them (they don't look after properties not in their area).
     
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  11. JetstreamVic

    JetstreamVic Well-Known Member

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    Fees to renew are ridiculous, I would never go with a pm that charges them.

    Given that they spend their entire working day looking at property, it becomes very easy to put a figure on what a place would get.

    As for the extra time setting it up? Maybe they could become a little bit more efficient and do a re-sign the same day as their inspection.

    As property investors we have the choice, if we accept it, they will pricegouge. If we walk, they won't.

    Just remember they don't charge less for every other month when they do nothing except take the top from the rent to send to you
     
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  12. Tanya1335

    Tanya1335 Well-Known Member

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    Hi Pat
    Just wondering how it all turned out, did your PM wave or reduce the renewal fees?

    Tanya
     
  13. dabbler

    dabbler Well-Known Member

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    Dont make too much sense, or you will get a bill for it !

    I also suggested to some that they should change battery in Smoke alarm at yearly inspection, I got blank stares and silence and we dont have a ladder.....err....BS, more like you do not want to spend any decent time doing inspections, just a quick glance or walk through (read, brisk walk), yeah, walls are up, not burnt down.....pass.

    Of course there are agents that do proper inspections too.

    At the end of the day, there are a bunch of PMs charging good fees who think that fee is for doing an absolute minimum too nothing but rent collection, they are far more common than the ones who care or give half a damn & in saying all that, this is the attention they give to the wheel with squeaks, imagine what those that never check etc get ??? Just more fees I imagine and jobs for mates.
     
  14. Scott No Mates

    Scott No Mates Well-Known Member

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    That's IF all of the tenants are present when the inspection is completed AND are in position to sign on the day AND there are no further amendments required to the new lease.
     
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  15. dabbler

    dabbler Well-Known Member

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    That is why the invented phones and calendars and the pen and pencil SNM :p

    No wonder the fees are so high if people do not line ducks up in a row :)
     
  16. Scott No Mates

    Scott No Mates Well-Known Member

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    I've very rarely seen a tenant take a part day off so that they could be present at the inspection or to sign documentation.
     
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  17. splatters

    splatters Well-Known Member

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    hi tanya
    no they didn't waive it. there were many emails and they finally reduced 1 property to $220 (prev a week's rent plus GST which was $400) and the second smaller property to $110. however i have now found an awesome PM through a family recommendation so will change PMs in the coming months. not just because of the fees - i am not looking for a bargain basement agent, but there were a few things i haven't been totally happy with.
     
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  18. splatters

    splatters Well-Known Member

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    i'd be very happy with a flat $100 renewal fee per property. that seems to be what most agencies charge.
     
  19. dabbler

    dabbler Well-Known Member

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    I rarely see many tenants that work full time, it annoys me how many sit at home and pick things and call the PMs who then do not filter and call me..... GO TO WORK ... lol..... you have a point, but do you have to ruin every dream ? ;)
     
  20. dabbler

    dabbler Well-Known Member

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    Nope, no they do not, most charge a very minor fee... 15-30 bucks, been like that for decades at least for Sydney, but I do not get slugged elsewhere either for this, would not wear it to renew same tenant.