Vendors staying on as tenants - PM charging letting fee?

When I was looking around, 2 weeks seemed to be the Vic average. When I bought my IP the selling agent discounted this 50% and also gave me a 10% discount on management fee. They had to find a tenant and charged advertising on top.

 

I will charge a letting fee if the vendor is staying on, but it is discounted as there's not the same outgoings on my part. I imagine most agents would be the same. What does your management agreement say for letting charges? Did they discount? What paperwork did they provide?

The fees are different across each agent.

Unfortunately for agencies, the cost to market a property alone costs hundreds (and that's only with RE.com and Domain, not any others). At the end of the day it is a business and to run it effectively, and profitably the agent needs to pass these charges on. Most agencies will negotiate on these charges depending on the rent of the property, but for some it's just not feasible to do this.

 

I agree with Sam. We wouldn't charge a full letting fee in this case as much of that fee is the cost of conducting open homes (@D.T. home opens?) but as has been mentioned there is still plenty of work involved in preparing the property for tenancy in different areas. You definitely should not be charged a marketing component if that is part of your agreement but in reality, what was going to be charged should have been negotiated prior to the event.

If the agreement says "$X charged for new tenancies" then that's effectively what's happened and that's what they've charged and are well within their rights to do so. After all, it is a contract.

 

In Qld our letting fee is equal to one weeks rent plus gst.