PM's Routine inspection fees!

On my recent rental statement from my PM in QLD, I noticed my PM had charged me $75 for a routine inspection fee. This is on top of the 7% management fee and the $6.60 admin fees they charge. When I enquired them about the $75 fee, they said they do routine inspections every 3 months, and to let them know if this is not required. I am new with this PM, as I had only bought this property 3 months back. My PM in NSW doesn't charge me for routine inspections, which they do every 6 months. Does your PM charge you for routine inspections, if so, how much?

 

What does your agency agreement say?

 

Its like what do they charge you the 7% for if they charge for events like this?

 

Did you read the MAA that you signed with this new PM? Their fees would be explained therein.

Personally, I don't pay for inspections but that is part of the agreement reached when were were negotiating the T&Cs.

 

I've seen everything from $16.50 to $100 for routine inspections.

 

Bummer!!! I rechecked the rental agreement, and yes in fine print its mentioned there will be a $75 charge on routine inspections. Which I think is crazy. I have dealt with 3 other PMs before, none of them charge this fee. Guess, reading the fine print was never my strong point.

 

$75 lesson learned... that's a cheap one in property!

 

Renegotiate the agreement or terminate and go elsewhere. Good lesson learnt and shared.

 

Consider looking elsewhere, the 7% management fee sounds a little on the low side generally in Qld. Is it still competitive as a management fee with this 3 monthly charge added in? Are you getting good service?
It's probably not a bad marketing idea as the headline fee would be lower than most.

 

Thanks for the replies folks! No, I haven't had any other issues with this PM, mind you still early days. I just got this report last week and PM asked my permission to repair a few minor things. I haven't given them the green light yet. I am just gonna stick with this PM for now, and ask them to do the inspections every 6 months. If I have further issues I will consider changing PMs.

 

Yeah, reneg.

I got a lease renewal fee a little while back for about 1/2 weeks rent.
I was thinking, why should they get that, it's not like they had to do anything special, just a form with a signature on it.
So renegged it right away and I won't be charged a lease renewal in future.
Apart from that, very satisfied with the PM.

 

I'd still renegotiate the rental agreement and get this fee crossed out on the grounds it's not consistent with QLD agreements. In my opinion doing three or four routine inspections per annum reduces your risk by spotting issues earlier.

 

I like regular inspections as Citystar said problems are picked up quickly, possibly saving you money by limiting future damage.
Think of things like door stops, minor water leaks, animals not approved on leases etc.
I haven't heard of a inspection fee in Qld before, is this an independent agency or nationwide brand?

 

Seriously?? You're being taken for a ride.

 

The PM is Ray White Waterford, so definitely not an independent agency.

 

Okay that's different, I use a few different RW agencies but I haven't come across this.

 

Why is it a ride when it was documented in the agreement and signed as an agreement.

 

There are a lot of quality PM boutique agencies with fee structures that do not have extensive lists of add-on's worth exploring - always read through contractual agreements carefully - many agencies only require 30 days notice to move your business and the process of moving to another agency is easy with the new PM agency looking after all the transfer of documentation etc. In relation to inspections - it is important to have at least three inspections per annum to keep on top of things not taking into account additional PM visits to a property to follow through on maintenance matters

 

It is also worth noting that you can request a change to any terms.

All my agreements have a termination of 14 days rather than 40 and no relet fee for an existing tenant.

At the end of the day, you need to remember that you are signing a contract and you must understand what you are getting yourself into.

 

I believe a professional way should be highlighting the $75 inspection fee instead of using fine print to hide the fee. This kind of behaviour is pretty bad. I would tell the PM to drop it or you go somewhere else.