Rent Commission Fee to Agent

Discussion in 'Property Management' started by 1stepcloser, 25th Jan, 2021.

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  1. 1stepcloser

    1stepcloser Well-Known Member

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    Hello,

    Last month I noticed on my monthly statement a fee Rent Commission Fee to Agent $27 x 4.

    The agent has told me its a fee for each week tenant pays into their account..

    I have never been charged this in the past, can they just created a new fee without any warning or informing me.

    I have told them I want to up the rent by $27 to cover he cost.

    I pay my rent through DEFT Payment Systems which incurs a 1.5% surcharge which I pay as the tenant not the owner.
     
  2. thatbum

    thatbum Well-Known Member

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    ...is there a question?
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    Are you the tenant or the LL? If it isn't in your management agreement, they can't invent new ways of bleeding you dry.
     
  4. Michelle Evans

    Michelle Evans Well-Known Member

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    Could it be that the tenant pays weekly and it's just showing that the commission is coming from the rent and is just showing 4 transactions. For example, if they paid 4 weeks rent in one go, then the commission on that one transaction would be $108?

    I'm not sure how things work in WA (other than they do have generally higher fees than us here in Victoria) but they can't just create new fees to charge you things on top of your commission if it's not part of your management agreement.
     
  5. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    is the rent about $340 pw?
     
  6. 1stepcloser

    1stepcloser Well-Known Member

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    Thatbum: can they just created a new fee without any warning or informing me. Is a question I just forgot the question mark.

    Scott no Mates. I am the LL and no I have not signed any paper work to change the management agreement in over 12 months.

    Terry_W its $400 pw but way I see it now with this fee its only $373 pw
     
  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    that is the 7% management fee?
     
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  8. wylie

    wylie Moderator Staff Member

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    That's what it sounds like to me too. Perhaps it is just shown a different way to usual?
     
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  9. Trainee

    Trainee Well-Known Member

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    Are you getting less than what you were before, on a weekly basis?
    What it sounds like is the normal management fee. Is there another line for management fee?
     
  10. 1stepcloser

    1stepcloser Well-Known Member

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    Terry_W & wylie, Yes that sounds about right its just the last 12 months its never been displayed on the statement like that. I knew I was paying 7% but never seen it taken out the way it showed up.

    Thanks guys for helping clear that up..
     
  11. Mel Morgan

    Mel Morgan Sydney Property Manager Business Member

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    It sounds like the tenant might have started paying weekly as the software calculates and charges the management fee on each sum of rent received. Or maybe the agents changed their software system.
     
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