RE agent commission

Discussion in 'Property Management' started by Sydlad, 19th Apr, 2020.

Join Australia's most dynamic and respected property investment community
  1. Sydlad

    Sydlad Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    96
    Location:
    Nundah
    Hello all

    Question about re commission for property management

    If the bond is kept is it normal for them to take their % fee of the bond kept ?

    The tenant had outstanding rent but also damaged to the property that exceeded the bond

    My instructions were that the bond was to go towards the damages and that I wouldn't claim the rent as the LL insurance policy excess made it not worth it

    Your thoughts ?

    Thanks all
     
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member

    Joined:
    15th Aug, 2005
    Posts:
    7,544
    Location:
    Gold Coast
    How much was the comm ?

    ta
    rolf
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    20,384
    Location:
    Sydney or NSW or Australia
    The bond has been applied against the outstanding rent & other costs.

    It was your decision not to lodge a claim with your insurer.
     
  4. Sydlad

    Sydlad Well-Known Member

    Joined:
    5th Jul, 2015
    Posts:
    96
    Location:
    Nundah
    As the damages + outstanding water were more than the bond I would have thought they would have left it as being a recovery of my costs with no comms

    Their comm is around 10% so only $120 not end of the world

    Guess it's time to find a new agent
     
  5. ChrisDim

    ChrisDim Well-Known Member

    Joined:
    13th Jul, 2018
    Posts:
    259
    Location:
    Sydney
    Unless bond is used for rent there shouldn’t be any management fees. Property managers get paid - usually/mostly - as a % of the rent which is kept from the rent. That’s how property managers get paid for their work which will be a lot in this instance by the sounds of things while they are sorting out the damage from the tenants. Also remember - yes there is a leasing fee in the end but- while the property is empty and being repaired, they make no money either.

    Instead of worrying about a few dollars on management fees, why don’t you give your property manager a call to see how they can jump onto the repairs quickly and cheaply, how you can support them, and how you will work together in current very challenging environment to find a good tenant and quickly? Just a thought...
     
    Tom Rivera and AaronCG like this.
  6. JoannaK

    JoannaK Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    73
    Location:
    Sydney
    Depends what their management agency agreement says. Some agreements say they'll take comms on rent collection only.....some say they'll take comms on all collections.