Real Estate Agent Charging Exorbitant Amount to Do a Tenant Transfer

AssamLaksa on 06/07/2015 - 21:25

Hi guys, I need some advice… Long story coming so please bear with me….

So, I'm currently staying in a two bedroom apartment. I share a bedroom with my boyfriend, and we have a friend, J, occupying the second bedroom. We moved into this apartment in January 2014 and signed a lease agreement for 12 months, then extended it for a further 6months. The current contract expires on July 11th 2015. So all three of us have signed the contract together and hence the bond registered under RTBA carries all three of our names. J initially intended to continue living with us but due to unforeseen circumstances decided to leave at the end of our current tenancy agreement. He told us this pretty early on, so we informed our agent very early on that J would be vacating the premises at the end of our contract. My boyfriend and I however, intend to continue living here and decided to look for a new housemate to take over J's room and sign a new contract with them. So while the room is empty at the moment we told the agent that we'd like to continue renting on a month-by-month basis. So naturally, we would have to return J's portion of the bond to him. I asked my agent about this, and she told me that it would cost $110 to do a tenant transfer, just to remove J's name from the bond. I was quite taken aback by the amount cost. Why are we being charged $110? It hardly seems fair, seeing that our contract has already ended, and we haven't broken any of the rules in the agreement. We informed her that J was leaving way before the 28 days notice requirement.

If I could get some advice from the OzB community regarding this, that would be great. Do you think I should contest/challenge the $110 fee? I feel like the agent is ripping us off. We have yet to find a new housemate yet, so if we were to do a tenant transfer to remove J's name, and then again when we find a new housemate, we would be charged double the fee?

TL; DR : Agent charging $110 just to do a tenant transfer even though the lease agreement has already ended.

Thanks for your time. Your input would be greatly appreciated.

Poll Options

  • 7
    Contest the $110 fee and bring it up with VCAT
  • 3
    Suck it up and pay the $110
  • 0
    Beg for a discount
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Comments

  • Master Bates on 06/07/2015 - 21:50
    +3

    No experience with the issue, but some light reading for you:

    • AssamLaksa on 07/07/2015 - 13:18

      Thanks for that. Seem like a couple of other people find it unfair as well.

      Regarding the Consumer Affairs website, I've checked the RTBA website and confirmed that they do not charge any fee for changing tenants, so the $110 was imposed by the agent. I could actually claim my bond back myself by submitting it online, but I would still need the Tenant Transfer form from my agent to complete the process.

  • zolinger on 07/07/2015 - 00:41

    Why not pay J the 110 and claim the full bond back?

    • AssamLaksa on 07/07/2015 - 13:25

      Sorry, but I don't quite understand how that solves the problem? Could you explain a bit more?

      The $110 is imposed by the agent (probably as processing fee or something). I'm not sure how paying J the $110 changes anything. He will then have to pay the agent that same $110 to get his name off.

      • zolinger on 07/07/2015 - 16:12

        i.e. Buy out J share and claim full bond back after you end lease

  • pjetson on 07/07/2015 - 08:20

    https://www.tuv.org.au/

  • zappy32 on 07/07/2015 - 08:20

    They usually claim that it has to do with the cost of checking with referees, credit history etc. Is your friend J asking about having their named removed from the lease? You could just keep their name on the lease until you find a new house mate.

    • AssamLaksa on 07/07/2015 - 13:34

      He's not pressuring us for the bond or anything. So we will definitely find a new housemate before doing the bond transfer.

  • misu p on 07/07/2015 - 09:06
    +1

    Besides the possible validity of your claim that you may be overcharged…. since when is 110 AUD an "Exorbitant Amount"?

    • AssamLaksa on 07/07/2015 - 13:11

      "Exorbitant" is relative. From my perspective, $110 can give me more than 11 meals. I think I would have sucked it up straight up if it were like $20. But $110 feels a bit ridiculous to me when we're not breaking any agreements.

      • misu p on 07/07/2015 - 18:15

        Fine, this means 110 = 36 * 3 dollar meals… In some countries (like mine) that would be a lot for some people, but here it is less than 1 days work for the minimum wage (or am I wrong).

        Again I agree that the sum may be too much ….

  • iamdead on 07/07/2015 - 13:36
    +1

    "Marston & Cook" RE Agency asked for $250 for the same! Me any my partner with the friends consent - have left it as is.

    We paid my friend his share of the RTBA refund; and at the time of we relocating, for the refund we can opt refund cheque to be give in one of the Tenants name [in this case My name]

  • Scorpiogirl on 07/07/2015 - 13:39

    Fair trading (Renting) in Nsw would have your answer. Not sure what it is in Victoria. If it doesn't seem right, it probably isn't. We have laws for a reason so people like real estate agents don't make their own rules.

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