Letting fee

Discussion in 'Property Management' started by runfromtheunicorns, 12th Jan, 2019.

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  1. runfromtheunicorns

    runfromtheunicorns New Member

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    Hi all,

    I terminated the agency agreement to rent out my property and my agent tells me I will have to pay the letting fee (1 week rent), but no tenants ever signed the lease agreement or given the rental bond. I agreed to lease it to a potential tenant he had found because he told me that they will give the bond plus sign the paperwork on the day. However, I found out this never happened which is why i decided to terminate because he keeps breaking his promises.

    So my question is, do i have to pay the letting fee ?

    Thank you.
     
  2. dabbler

    dabbler Well-Known Member

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    How can you pay a letting fee if no tenant. Some other fees maybe, but a letting fee ?
     
  3. D.T.

    D.T. Specialist Property Manager Business Member

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    Just to clarify, property is still vacant and this is first time they've rented it for you?

    Could understand reimbursing of costs incurred (eg photographer, advertising) if that's in your contract, but not letting fee.
     
  4. Lil Skater

    Lil Skater Well-Known Member Business Member

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    Comes down to what's on the agreement you signed, it should have a fixed price or something else on there. I'd say at least 90% of agency agreements would have something in there about early termination fees, generally it won't be the full let fee - but a nominal amount to cover marketing charges.
     
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  5. Ricky Adelaide

    Ricky Adelaide Well-Known Member

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    Cant charge a letting fee if the property isnt let. As everyone else has mentioned, there may be other costs listed in your management agreement. If its not listed in your management agreement then you shouldnt be paying it.
     
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  6. Michael Mitchell

    Michael Mitchell Well-Known Member

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    Depends if a breach of contract has occurred on your behalf. You need to check what your Appointment to Act and any terms & conditions/addendums of that contract state. Most have a termination period (such as 30-60-90 days) and the T&C's state they're entitled to any fees and charges ordinarily payable during that period if for example the Lessor chooses not to wait out the termination period with the current Agent. If the property hasn't been re-let & no rent collected therefor no fees/charges ordinarily payable, then nothing is claimable by the Agent. In this case it sounds like the Agent has gone to some effort/expense to try and let the property, but these aren't specified in the Appointment, so they only get paid if the property is leased, but since you've terminated the appointment they're going "well hang on", but at the end of the day that's a risk they take by the way they choose to do business..
     
  7. charlie01

    charlie01 Well-Known Member

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    The le
    If the letting fee was 1 week rent, and the 1 week rent you received was $0, then the letting fee would be $0. Simple. Primary students should know that kind of math.
     
  8. dabbler

    dabbler Well-Known Member

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    It may not be that simple.

    If the tenant was signed but did not pay due to some dispute, or other, then the agent may be entitled to the letting fee.

    Lets say an agent just placed a tenant for the Opal tower and was due to go in when all the probs started, then I would guess the agent may have grounds to ask for the fee.

    If the agent had advertised, but no tenants put in an application & OP decided to change, then there would be no fee I would expect.

    So it is in the detail & what is in agreement, but, yes, most would expect no to let fee.