PM charges letting fee + Management fees on reletting?

Hi All,

My tenants are leaving the property this Thursday and new tenants will be taking over on 24/2/17.
My PM has charged me 110% of weekly rent as the letting fees. She charged me the same when we had our first tenants. Can some one please let me know if it is charged everytime tenants change. I used to think 110% is only first time and after that it is around 150$ or so for each change.

Thanks
Nishant

 

Hi Nishant,

Have a look on your management agreement but the let fee of 110% or one weeks rent + GST is a common fee that owners pay to secure a new tenant for the property. This fee includes the agent showing the property, processing applications and completing the sign up and also the vacate of the previous tenant and the entry report for the new tenant moving in.

The other fee you will be thinking is the lease renewal fee when the current tenant extends their current lease for another period of time.

 

Usually 1-2 weeks rent + gst for new tenants. Lease renewal (same tenant) varies

 

Varies in different states, and even among different agencies. 2.2 weeks letting and 1.1 weeks renewal (inc GST) is pretty common in SA, but 1.1 weeks letting and 0 renewal might be common in another state, or higher, lower etc.

Also look at what those fees actually include, eg advertising, photography, rent market review, negotiation, lodging paperwork, etc

 

I would have said that the Sydney norm is 1 weeks (+gst) charge on the initial placement of a tenant on getting the property under management. Any subsequent placements are 1/2 weeks rent (+gst)

As mentioned have a look at your management agreement and if it's not this then renegotiated or move your property if you have other issues.

 

Thanks all for your replies and help!
May be I misunderstood it earlier then. All seems to be good now.

Cheers
Nish

 

Yeah I am changing agents now and I was surprised that a re-signing fee was charged the same as finding a new tenant. How they charge full letting fee for taking a piece of paper to the tenant to sign is beyond me. Obviously I negotiated out of that before signing a new agent.