Real Estate wants to Charge an Additional 3 Weeks Rent Upon Signing a Lease [NSW]

LFochisle on 14/02/2022 - 23:04
Last edited 15/02/2022 - 13:33

Hi there,

First time moving out and I've just been approved tenancy for a property. Everything given by the real estate lines up with the NSW tenancy agreement, however there is a sentence in the email saying:

"On lease signing day:
When you attend our office to sign your lease, you are required to pay an additional three weeks rent, of $1290.00."

It says 'additional' payment rather than an 'advance' payment. So my question is, is this is a fee to the real estate agents or is this is just another wording for an advance payment? There is no other mention of payments besides rent and bond in the email. And even if it was an advance it can only be two weeks.

Cheers

Edit: Just spoke to the real estate agent and he said that the ‘additional payment’ of three weeks rent is the advance payment, but said that it should only be two weeks and he will correct it. The one weeks rent my partner gave as ‘security’ will add an additional week of rent as well. So all up we will have the first three weeks of rent paid for and everything else is smooth sailing.

Thanks again for everyone’s advice - I now know that the only things a tenant should pay is bond and rent-related payments.

Home & Garden

Comments

  • dn4hc on 14/02/2022 - 23:05
    +1

    normally its one week rent as letting fee, three weeks is too much.

    • Fochisle on 14/02/2022 - 23:10

      Right ok that makes sense,

      My partner already gave one weeks rent over the phone as 'security' for the property by their request. Can we just discuss with the agent and use that as the letting fee?

      • dn4hc on 14/02/2022 - 23:14
        +1

        sorry I didn't read properly, are you gonna be renting, if yes then you need to pay 4weeks rent as deposit, its called rental bond. additionaly you have to pay 2 weeks of rent in advance.

        https://www.fairtrading.nsw.gov.au/housing-and-property/rent…
        https://www.fairtrading.nsw.gov.au/housing-and-property/rent…

        • Fochisle on 14/02/2022 - 23:20

          I'll be paying bond which is the 4 weeks of rent at $1720 - This payment of 3 weeks is mentioned as a separate and additional payment. I just couldn't find anything about additional payments on the tenancy agreement, thus arose my question. I do feel that this additional payment is quite steep and I can't justify it without good explanation, which I will ask for tomorrow from the agent.

          • Gervais fanboy on 14/02/2022 - 23:28

            @Fochisle: Ohh wow

            And as it seems, they quite conveniently didn’t tell you about it until now.
            Mate, I’d let this one pass if I were you

            Btw I have never heard of a similar practice before, I am based in Melbourne btw, have got a few properties leased out.

            • Fochisle on 14/02/2022 - 23:31

              @Gervais fanboy: Yea I'm not happy about it. Should I be paying any sort of 'additional' payment/fee, or should it purely just be rent and bond?

          • twobit on 14/02/2022 - 23:56

            @Fochisle: Reads to me as you have paid 1 week and they want 3 weeks more making 4weeks for the bond maybe?

            Here in QLD we pay the bond direct to RTA and then rent to agent, and only 1 week normally sometimes they ask for 2

            • Fochisle on 15/02/2022 - 00:07

              @twobit: You could be on the ball and I did not consider that - hopefully that is the case

    • Quantumcat on 15/02/2022 - 08:17
      +2

      You should not have to pay a letting fee, the landlord pays that

  • Islelone on 14/02/2022 - 23:38
    +1

    Haven’t heard of anything like this before. Have you tried asking them to clarify what is this for? If it something dodgy, make sure to report them to the relevant authorities. Which real estate company is this or privately leased?

    • Fochisle on 14/02/2022 - 23:48
      +1

      Yea I'll call them tomorrow and update how it goes - I won't be continuing on with the lease if they don't remove this additional cost. Only issue is my partner has already handed one weeks worth of rent to the agents as 'security', so I wonder how I'll get that back… I'll name them depending on how tomorrow goes.

  • garetz on 14/02/2022 - 23:58
    +1

    Seems like they know you are rubes and are trying to take advantage of you. Just ask for your security to be refunded and you are no longer interested.

    • Fochisle on 15/02/2022 - 00:06

      I'll go for that option if it is not related to bond or advancements in rent.

  • Pelicannn on 15/02/2022 - 00:02
    +1

    I am confused, are they asking for rent… such that you pay when you sign (tomorrow for example) $1290 on the 15th, and then you don't need to pay rent again until the 15th of March given you already have 1 week paid, plus the 3 more they want.

    OR

    Are you saying they have a '3 weeks worth of rent fee' they are charging you for letting you the property?

    If it's the former, it's strange, but no big deal, it's always helpful to be ahead on rent payments as sometimes things come up and you can skip a week if you desperately need to. If it's the latter, tell them to get bent, they get paid comission on the rent they take and don't pass onto the owner of the property.

  • Fochisle on 15/02/2022 - 00:05

    If it is the former then it should only be 2 weeks under fair trade and I would rather play it by the books even though it is not much of a deal. If the latter then that is how I'll deal with it.

  • Quantumcat on 15/02/2022 - 08:18

    I think it is a misunderstanding and the three weeks is to bring the bond up to 4 weeks as your partner already paid 1 week. But you need to ask them. "Additional" is because it is additional to the 1 week already paid.

  • Hellfire on 15/02/2022 - 08:45

    Usually that will include the first 2 weeks rent and 1 week in advance. You'll pay you next rent in 2 weeks so you'll always be 1+ weeks in advance.

  • Manifesto on 15/02/2022 - 09:44

    4 weeks rent bond and 2 weeks rent in advance paid at the same time or before signing the lease and receiving the keys.

    check with the department of fair trading, tenants union of NSW

  • JimB on 15/02/2022 - 09:46

    I thought you were the landlord initially.

    If it's in an email, you didn't sign it. That wouldn't hold up at the tribunal.

    Anyway, I'm certain it's rent paid in advance.

    My tenants always pay 1 month in advance.

  • Seraphin7 on 15/02/2022 - 10:28

    As usual, speak with the person directly. Ascertain exactly what this is for, noting the need to pay a bond and rent in advance (that will typically add up to six weeks' worth of rent). If anything is not in line with the matters outlined above by Fair Trading, question them directly in that context.

  • Trying2SaveABuck on 15/02/2022 - 10:58

    find a new agent 1 weeks is normal 2 weeks is some places but 3 is just a rip off

    • JimB on 15/02/2022 - 11:03

      I agree, but in this case the OP is the tenant, not the landlord.

  • sovereign01 on 15/02/2022 - 11:35

    4 weeks bond is normal

    2 weeks rent in advance when moving in is fairly normal.

    3 weeks may be 2 weeks in advance + first week pre-paid? Ask them when they expect your first rental payment after these, that will determine whether you're being taken for a ride or not.

  • askme69 on 15/02/2022 - 11:53
    +1

    RE's are the SCUM of the earth and are way below those high moral USED car Dealers, that's saying something.

  • Ghost47 on 15/02/2022 - 12:01
    +2

    It’s like we’re becoming a nation where we just rip each other off to make more money or even just keep our heads above water. This is a serious issue especially when it comes to housing, like this video I watched.

    This will probably just get worse as fewer and fewer people own property into the future. But hey at least the landlords get rich!

  • Fochisle on 15/02/2022 - 12:25

    As long as this ‘additional’ 3 weeks is put towards either the bond or rent then I am happy with that. About to call the property manager now and see what’s up.

  • wallet72 on 15/02/2022 - 12:31
    +1

    I'm trying to be positive here, but could it be that the additional 3 weeks is added to the 1 week you've already paid to make up the bond?

    • Fochisle on 15/02/2022 - 13:29
      +3

      Just spoke to the real estate agent and he said that the ‘additional payment’ of three weeks rent is the advance payment, but said that it should only be two weeks and he will correct it. The one weeks rent my partner gave as ‘security’ will add an additional week of rent as well. So all up we will have the first three weeks of rent paid for and everything else is smooth sailing.

      Thanks again for everyone’s advice - I now know that the only things a tenant should pay is bond and rent-related payments.

      • onetwothreefour on 15/02/2022 - 13:37
        +3

        I now know that the only things a tenant should pay is bond and rent-related payments.

        You also need to pay the ozbargain consultancy fee, pay direct to Scotty.

  • mrkorrupt on 15/02/2022 - 12:53
    +1

    30 mins no reply, looks like the rea killed op

    • Fochisle on 15/02/2022 - 13:32
      +1

      Ahaha finding a cheap fridge on FB marketplace got in the way of making that call straight away, but yea I accidentally replied above with the outcome instead of making a seperate reply

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