Let fee - when a property was already tenanted when purchased

Discussion in 'Property Management' started by aussieB, 26th May, 2017.

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  1. aussieB

    aussieB Well-Known Member

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    Hello,

    What's the industry norm around this - A property was tenanted. The tenants chose to stay. An investor purchased it and asked a new property manager to manage the property. In this case, does the new property manager charge a let fee ?

    Cheers,
     
    aussieB, 26th May, 2017
    #1
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Generally not but....were they required to prepare the new lease? (still wouldn't be a full charge).
     
    Scott No Mates, 26th May, 2017
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  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Generally not, but would need to know more about the situation / circumstances
     
    D.T., 26th May, 2017
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  4. aussieB

    aussieB Well-Known Member

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    No. The lease was just 'transferred/taken over'.

    What details would you like to know ?
     
    aussieB, 26th May, 2017
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  5. aussieB

    aussieB Well-Known Member

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    aussieB, 26th May, 2017
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  6. Perthguy

    Perthguy Well-Known Member

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    Depends if they prepare an outgoing property condition report and an incoming property condition report. These should be done and there would be a fee.
     
    Perthguy, 26th May, 2017
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  7. Tanya1335

    Tanya1335 Well-Known Member

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    Generally not, the entry report carries over as the tenancy is existing. All other relevant documents are transferred to the new PM, the only time we charge a let fee is for example PPOR is sold and the seller is staying on as the new tenant. There then needs to have an entry report, leases etc
     
    Tanya1335, 26th May, 2017
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  8. Luke T

    Luke T Well-Known Member

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    I believe they can charge it but most don't due to starting off on a good foot with the new owner .I wouldn't be happy if I was charged that .
     
    Luke T, 27th May, 2017
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  9. aussieB

    aussieB Well-Known Member

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    aussieB, 27th May, 2017
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  10. Xenia

    Xenia Well-Known Member

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    NO
    No letting fees should apply.
     
    Xenia, 27th May, 2017
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  11. aussieB

    aussieB Well-Known Member

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    Yeah. The advice on possible rent and the cost of inspecting the property before sale and pre settlement inspection, which was understood to be a favor (in turn awarding business) wasn't really a favor. Those 'services' were charged as letting fee. Thanks for replying @Xenia
     
    aussieB, 27th May, 2017
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  12. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sutherland Shire & Surrounds Business Member

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    If it's a tenanted transfer then no condition report is done when a new manager takes over, it is only done at the commencement of the lease.

    Definitely no letting fee should apply in this case.
     
    MyPropertyPro, 28th May, 2017
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  13. Yolanda

    Yolanda New Member

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    No, no let fee applies since this is take over the Lease.
     
    Yolanda, 30th May, 2017
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  14. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    If the property already had a tenant and your agent wants to charge you a letting fee for taking over - I suggest you find a new agent.
     
    eletronic_exp0430, 30th May, 2017
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  15. DaveM

    DaveM Well-Known Member

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    If a PM i had chosen tried this on, they would be terminated
     
    DaveM, 30th May, 2017
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  16. dabbler

    dabbler Well-Known Member

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    No, not 1 week + GST let fee, a lease prep fee possibly......
     
    dabbler, 30th May, 2017
    #16