Perth NOR PM- current re lease fee too high

Hi there,
I’ve had the current PM for my IP in Girrawheen for a while now. Recently they charged me a re lease fee of 1 weeks rent plus gst. I’ve had the same tenant for 10 plus years, this re lease fee is just re signing the same tenant for another lease term. I feel that it’s way too high, esp other agents in other states don’t have such a fee and it’s not like they had to find a new tenant. current management fee is 7.7% I have brought it up with the PM but they don’t seem to want to budge on this.
Do others have to pay such a fee in Perth ? And if not and recommendations for good Pm with reasonable fees NOR ?

many thanks !

 

Typically, the renewal fee is around $110 as there is home opens or vetting of tenants. You need to have a look at the management authority. If you have a standard REIWA Management Authority the agreed renewal will be on page 3 part (i)

 

In this case of re leasing, there is actually no home opens or vetting of tenants bc it is the same tenant ! I unfortunately did sign the agreement of 1 weeks rent plus gst bc I didn’t read it carefully, but my point is this seems way too high.

 

Here is a tissue ........

You agreed and signed a contract and now you feel hard done by, boo hoo!

You have options. You don't actually have to renew and sign a new lease as the current fixed term lease should automatically become a periodic lease if a new agreement is not signed.

Your choice.

 

I thought one week rent for renewal is the standard in Perth.

 

Not for mine.

 

Any negatives from a landlord insurance perspective if I just let the lease become periodic ? I know the tenant can break lease earlier if if it’s not a fixed lease but I’m ok with that.

 

If you go to periodic there shouldn't be any effect to your insurance, but not all insurance policies are the same. Just give your insurance company a call to confirm.

 

Yeah the whole "rolling into periodic might void your insurance" seems like this trope that gets bandied around a lot in these forums, but I've never actually seen any insurance policies that say that in reality.

It probably is a thing that has happened somewhere at some stage, but doesn't seem common in my personal recent experience.

 

https://www.rentcover.com.au/info-centre/fixed-term-vs-periodic-leases