Rental Agent Claiming Management Fees

Hey guys,

Short story is due to hail and damage my tenant had to leave to fix damage. Strat insurance is covering loss of rent. I stupidly agreed for it to be paid via my real estate company's trust account like normal rent. I noticed they are still deducting 5% a week for rental management/fees even though no one is residing.

Should i just ignore it (amounts to $100 a month- prob for total of 2-3months).

strata said they'll still pay loss of rent when looking for a new tenant even after repairs are done- and i assume RA agents will still take 5% then prob claimm $400 for new tenant found…

Feel like telling them to stop charging bogus management fees when they're not managing the property (they do however liase with the strata company via email- although i have now taken over it)

edit:
I uploaded the link to my agent fees https://files.ozbargain.com.au/upload/143535/70777/agent.png

It just says 6% of all moneies collected. Does this mean anything that goes into their trust acocunt- because i've accepted a 4k for settlement of floor damage but i asked them to send it via agent's trust account.

Poll Options

  • 1
    Ignore it given it'll create a sour relationship with RA agents
  • 32
    Complain to their director/ask politely to stop the fees till it is tenanted

Comments

  • +1 vote

    What does your contract say on these fees?

  • +1 vote

    If they've been good property managers i would wear it.

  • +4 votes

    I was going to just tell them and strata, to just pay me directly because going via the real estate takes 2 weeks because they pay at the end of fortnight and excuse them like that. Then since the money is going directly to me they cant get 6%

    I mean i didnt mind them charging 6% when they were dealing with teh strata insurnce company.. But now they're not doing anything because i've taken over

  • +3 votes

    "It just says 6% of all moneies collected."

    Seems pretty straightforward, plus they were liaising with Strata for you up to now. Where's the confusion?

    •  

      so if 4k settlement goes via their trust account- they have the right to deduct 6%? seems crazy to me lol

      • +1 vote

        Technically yeah. But I voted "ask politely that they don't deduct 6% for these amounts".

        But you're using their trust account, and they're doing work. It'd be unreasonable for you to expect that they do that completely for free too. Work something out with them.

        •  

          yeah it's prob just easier to get strata to just pay me directly so not use their trust account.

  •  

    "Complain to their director/ask politely to stop the fees till it is tenanted"

    They might charge you two weeks rent or whatever they have contracted when the tenant moves back in as it will be re-tenanted…

    I'd just wear it.

  • +4 votes

    Based on what you've posted, they are entitled to 6% + GST of all monies that pass through their hands to you. Whether that's "true rent", loss of rent insurance monies or lump sum payments, it reads that way in the absence of any other qualifying clauses.

  • -1 vote

    what diff does it make to you, you are no worse off.

    i would not care less, in fact i think its fair enough

  •  

    Contract says you owe them.

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