Pm charges?

Discussion in 'Property Management' started by Nuncasuficiente, 1st Feb, 2019.

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  1. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Just after some guidance on a few new charges I received on this months statement.

    I was charged $79 attendance fee for my property manager “on site manager” when a new hot water system was being installed.
    Seems to me it was not nessecary for him to attend nor did I request this.

    I was also charged $55 for “internet advertising fee” (the lease isn’t up until mid March and as far as I know the tenants are staying). Also can’t find my property advertised anywhere...

    Can anyone clarify this being normal?
     
  2. mikey7

    mikey7 Well-Known Member

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    What's in your contract?

    The advertising fee I could understand if they knew the tenants were leaving and they were prepping the advert. Just because you can't see it doesn't mean it hasn't been done - they can complete the advert and set an 'active' date where it appears online at a set date.
     
  3. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    They told me it is part of a subscription they have for internet based advertising... It is in the contract but seems like an unnecessary charge when I’m not advertising.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    On-site managers live off the fees that come from the property. If you don't like the fees (which you agreed to but probably didn't fully appreciate), terminate the arrangement.
     
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  5. Pumpkin

    Pumpkin Well-Known Member

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    I guess it's hard to pinpoint a specific charge. I'm big Picture person and would like to ask what's their other fees like, commission %, management %, Let Fee, Re-let fees etc....
     
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  6. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    I have been referred to the agreement where it states a $15 maintenance attendance fee + 5% & GST of the invoice cost.
    It’s in the agreement but in my opinion this is bs. Thoughts?
     
  7. Cimbom

    Cimbom Well-Known Member

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    If it's in the agreement then you agreed to it
     
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  8. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Fees:
    Re letting - 12 months: 1 weeks rent + GST
    Maintenance attendance $15 + 5% & GST of invoice.
    QCAT hearing $66/ph
    Admin fee $11 a month
    Internet advertising $55 per year
    Tenancy database $7.70 per year
    Rent collection 7.5% + GST

    Interestingly they also collect a $5 a week “carpark maintenance fee” that is not in the agreement. I would’ve thought that is covered by my strata fees?

    Thanks
     
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  9. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Correct, I’m just wondering if these are normal charges to other property owners. They seem excessive to me
     
  10. D.T.

    D.T. Specialist Property Manager Business Member

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    Attendance is a valid charge if its in your contract, but i'd question it if you didn't request their attendance

    Internet advertising is a valid charge if its in your contract, but i'd question it if the property is not actually advertised.

    I haven't seen anyone charge this one before (I wish lol!)

    This one need not actually be in your agreement, it might be a bill they're paying for on your behalf. You'd need to check who is actually charging it to be able to help further.
     
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  11. The Y-man

    The Y-man Moderator Staff Member

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    Is it a high-rise with lifts?
    In most high-rises, if they don't have a specific goods lift (unlikely), they need to protectors up (to stop getting damage to lift walls etc) as well as possibly access to bulky delivery doors (don't want trolley tracks on marble floor etc) - all of this needs attendance by building / onsite manager

    The Y-man
     
  12. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    It’s a walk up only three stories...
     
  13. The Y-man

    The Y-man Moderator Staff Member

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    Well, then I would feel dudded too! :(

    The Y-man
     
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  14. Pumpkin

    Pumpkin Well-Known Member

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    Thanks for sharing. My comments (All + GST):
    1. Re letting - 12 months: 1 weeks rent: Most people charge half-week for Re-let. How about Let Fee (New Lease)?
    2. Maintenance attendance $15 + 5% of invoice. - this is new to me. I can understand if it is a big job, painting or something like Project Management. But every job??
    3. Internet advertising $55 per year - that's cheap. How about photography?
    4. Tenancy database $7.70 per year - that's super cheap
    5. Rent collection 7.5% - that's average I'd say. In Brisbane many people charge 8.8%, depending on area, size of PM, and rent amount. The higher the rent amount the lower the %.....
     
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  15. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    So, I did ask why it was necessary for him to attend when I didn’t request this and also stated that I think 5% + GST of an invoice seems excessive to me and asked why is this in the agreement.

    That was about 11am yesterday, No reply yet.

    The Lease is up in about 6 weeks I have told the PM that I would like raise rent $10 as far as I know they have not started talking to the tenants.
    If they renew the lease and I change pms after that, do I have to pay 1months rent to the new agent as well? Can anyone clarify this for me?

    Thanks
     
    Last edited: 2nd Feb, 2019
  16. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Thanks
     
  17. The Y-man

    The Y-man Moderator Staff Member

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    There are very few "have to" between you and the PM by law other than the contract. It all comes down to what you negotiate. So if you don't want to pay a lease fee to a new PM (can't see why you would if you already have tenant), you just tell them, and see what they say - negotiate form there. Negotiate invoice/postage fees, negotiate management fees.... none of this is set in law. Purely between supplier of service and you (the service user).

    The Y-man
     
  18. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Thanks Y man
     
  19. MyPropertyPro

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

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    Is there an additional advertising charge when the property is advertised for rent? As it is a per year fee it looks more coincidental that it occurred around the time you were looking at a lease renewal. What would be interesting to know is exactly what this covers. Most of the advertising platforms charge a monthly access or subscription fee then an additional charge for each individual advert. Most agencies absorb the monthly fee and just pass on the cost when an individual property is advertised but they may be oncharging that underlying access/subscription charge.

    - Luke
     
  20. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Odd fee structure. The only thing there I would be especially annoyed about is the maintenance fees, otherwise it all seems okay. Of course you also need clarification on the carpark fee being charged when it's not in the agreement and the advertising fee charged when it's not advertised, but that's a given.