For people working in property

[aprilia_RS250]

Why the fuck do I have to paying a letting fee to a letting agent, the bastards charge 1 weeks rent and are cheeky enough to add GST.

I'm looking for a place in the city. Found a 1000 pw 3 bedroom place. Costs to move in are as follows. 2 weeks rent advance, 4 weeks bond and 1 weeks rent for letting agent plus GST. totaling 7150!

I told the agent he ain't getting the 1150 letting fee as he only answered my trade me query and spent 15min showing me the property, he can raise it with the property manager as he effectively did his job and is something I shouldn't be paying for. We argued for a bit and he said he'll come back to me. He did and said he can't waive it, I told him to go fuck himself and may he look forward to many more months of no rental income.

So here is what I don't understand.

-Potential tenants don't want to pay letting fees

-Property owners want no vacancies in their properties as even 1 week loss of rental income can be substantial.

-Letting agents and property managers usually work for same firms

-It seems by having a letting fee the property managers and letting agents have more of an incentive for high tenant turnover vs. solid long term tenants as every time a new tenant moves in they'll receive a letting fee (1 weeks rent for fuck all work) rather than charging a continuous property management fee of 8% pw (industry average). Not good for property owners.

So for that place I was looking at they would receive 1000*52*0.08=4160 a year as property fees provided the tenant stay for a whole year. Property owner gets 52000-4160 = 47,840.

Now say they have 4 tenants during the year and had about 10 weeks of no rental income as they were looking for new tenants. That means they collected 4k in letting fees and 42*1000*0.08 = 3,360 in property management. Total revenue of 7,360. Property owner gets 42,000 - 3360 =38,640.

Doesn't make sense, they make more money when the property owner makes less. Cheeky fuckin bastards!

Rant over.

[Banditbandit]

Ah little grasshopper ... you are discovering the joys of our Capitalist economy ...

Now ... you need to contemplate the beloved Mao's answer to such economic complexities ...

[Scuba_Steve]

Yea I've always thought the letting fee is utter especially since I aint making money off the property so why should I be paying for their "services" & their "services" aren't even in my favour they're for the owner.

You should ask for a full invoice of the "services" they want to charge you for after all law says something like services must be a fair & reasonable price

[Wannabiker]

4 weeks rent for bond sounds a bit steep... you should be able to negotiate this down too. (plus get bond from your previous property transferred)

I have just rented out my house. I went through a property manager at a local real estate firm. Yes, they took one weeks rent from the tennant, but they did the advertising, took prospective tennants through, reference checked, and credit checked. My ongoing fee to the property manager is 8%. However, the tennants appear to be OK, and I will now take over the management of the property.
I only asked for one week rent in advance, and 2 weeks rent for bond.

So, in short...it should be negotiable. I certainly didn't want my place sitting empty, and was pleased to get tennants.

[Brian d marge]

1000 dollar PW are you for real !!!!!!


Daryl tell him hes dreamin .....





Stephen

My mortgage over here for a three bedroom town house is less than that, Im 30 min from Tokyo !!

Stephen

[JimO]

a grand a weeks a bit steep, you you could rent 2 5 bedroom houses in dunedins ritziest street for that

[Timmeh:P]

Fark me! 1000 pw 3 bedroom place. Get a mortgage... its cheaper!!!

[jasonu]

a grand a weeks a bit steep, you you could rent 2 5 bedroom houses in dunedins ritziest street for that

Yeah but who wants to live in Dunedin???

[HenryDorsetCase]

Why the fuck do I have to paying a letting fee to a letting agent, the bastards charge 1 weeks rent and are cheeky enough to add GST.

I'm looking for a place in the city. Found a 1000 pw 3 bedroom place. Costs to move in are as follows. 2 weeks rent advance, 4 weeks bond and 1 weeks rent for letting agent plus GST. totaling 7150!

I told the agent he ain't getting the 1150 letting fee as he only answered my trade me query and spent 15min showing me the property, he can raise it with the property manager as he effectively did his job and is something I shouldn't be paying for. We argued for a bit and he said he'll come back to me. He did and said he can't waive it, I told him to go fuck himself and may he look forward to many more months of no rental income.

So here is what I don't understand.

-Potential tenants don't want to pay letting fees

-Property owners want no vacancies in their properties as even 1 week loss of rental income can be substantial.

-Letting agents and property managers usually work for same firms

-It seems by having a letting fee the property managers and letting agents have more of an incentive for high tenant turnover vs. solid long term tenants as every time a new tenant moves in they'll receive a letting fee (1 weeks rent for fuck all work) rather than charging a continuous property management fee of 8% pw (industry average). Not good for property owners.

So for that place I was looking at they would receive 1000*52*0.08=4160 a year as property fees provided the tenant stay for a whole year. Property owner gets 52000-4160 = 47,840.

Now say they have 4 tenants during the year and had about 10 weeks of no rental income as they were looking for new tenants. That means they collected 4k in letting fees and 42*1000*0.08 = 3,360 in property management. Total revenue of 7,360. Property owner gets 42,000 - 3360 =38,640.

Doesn't make sense, they make more money when the property owner makes less. Cheeky fuckin bastards!

Rant over.

How retarded would you have to be to spend $1000 per week on a fucking RENTAL.

thats $52000 a year in dead money.

that would service (at current rates) a $500000 mortgage.

Go and find a place for $200 a week, save $800 a week for a year and you have a deposit. Nows the time to buy, the market is completely in the toilet.

$1000 a week! on rent!

[JimO]

Yeah but who wants to live in Dunedin???

fucked if i know!!! could be the fact that you can live in a clean safe city with 12000 people that has the amenities of a city 3 times its size, one of NZs best universitys, medical school, dental school, affordable housing, no gang problems, no graphitti, one of NZs best surfing beaches, great windsurfing on the harbour, good fishing, ski fields not far away. But obviously it wont be anywhere as good as wherever you live, Bend?? are people who live there called benders??

[avgas]

Ah little grasshopper ... you are discovering the joys of our Capitalist economy ...

Now ... you need to contemplate the beloved Mao's answer to such economic complexities ...

Kill anyone who has anything. Give it all to the government.

Sorry but while I can respect what Mao did for his country - they guy made Hitler look like one of the backstreet boys.

[HenryDorsetCase]

fucked if i know!!! could be the fact that you can live in a clean safe city with 12000 people that has the amenities of a city 3 times its size, one of NZs best universitys, medical school, dental school, affordable housing, no gang problems, no graphitti, one of NZs best surfing beaches, great windsurfing on the harbour, good fishing, ski fields not far away. But obviously it wont be anywhere as good as wherever you live

and on the three, sunny, windless days on average in any given year, you can really get out and enjoy all those amenities.

[avgas]

If you have to ask why....

...you can afford it.

Pffft $1K / week rent. and your complaining about a measly $1000 fee.

[Jantar]

a grand a weeks a bit steep, you you could rent 2 5 bedroom houses in dunedins ritziest street for that

No, No NO! If he's prepared to pay $1000 pw for rent then we don't want him living this side of Cook Straight.

[JimO]

and on the three, sunny, windless days on average in any given year, you can really get out and enjoy all those amenities.

you need to get out more