What does landlord have to pay property manager?

[Covkid]

Briefly... 4 years ago we appointed our property manager, who's been managing our 3 properties for 15 years (we're long term expats), to supervise a major renovation on one of the properties for us. There was no written agreement!

The final expenditure ended up being almost double the original builder's quote and most of this cost we were not made aware of. We were just faxed a bill overseas for a very large amount that was totally unexpected.

We had to pay the builder but now, 4 years later, the property manager wants her 10%. She had originally decided not to send us a bill for her services.

Do we have to pay her anything? What should be our next step?

[Poppy]

Yes, it's odd.

You’ve had a long-standing relationship for 15 years. Why would you not want to pay? Did they do something wrong? Are they still managing your properties? Have you spoken to them? Do they remember saying they have decided not to send a bill? Have they now sent a bill?

[Covkid]

Poppy

We don't want to pay the full 10% because the property manager let the renovation cost escalate without advising us. Just sent a fax overseas to us asking for a large amount of money which we were not expecting.

Yes, there's been a lot of dialogue! The property manager previously advised us to settle up with the builder (we'd delayed the final payment to him whilst all was sorted out) and then she said she wouldn't send her own invoice. She does remember this. We have copies of the letter.

Now, 4 years later, because we're not happy with her management of our property and have totally lost confidence in her we've moved to another company . She's mad and now wants to charge us for her supervisory role in the renovation. She wants 10% of the full escalated cost! We feel she deserves something but not 10% of the final cost.

She admits to not keeping us informed, in the latter part of the renovation, of the escalating cost. Also admits she wasn't going to invoice us but now we're moving to another agent she's changed her mind.

Would welcome some advice. We are prepared to pay her something.

[islandgirl]

If you have it in writing that she will not charge you I think you would be mad to pay anything....

[expatbloke]

I'd like to extend the original poster's question to something similar that is happening with my property. My flat was recently damaged by severe flood damage, so for the past 4 month's it's been vacant while the builders are in fixing the place. It's major damage to a house that contains 4 flats - probably amounting to over 70k worth of repairs.

My letting agent is now telling me they want to charge me a fee of 10% of the total repair bill while the property is vacant. Now, I understand I need to pay my letting agent while there is no tenant this seems unacceptable to me - first of all the damage affects the entire building, and not just my flat but secondly because my insurance cover will cover me for lost rent and not an additional 7k 'fee'.

So, my question is - is a 10% fee normal (as it seems the agent in the original posters question wanted)? I am happy to pay 10% of the normal rental income during this period - noting that my building insurer is supervising all repair work, not the agent.

Sorry for interupting the original question..

Thanks.

[MrShed]

If he is not supervising the repair work, how on earth has he got the balls to ask for 10% of the repair bill!??! This sounds ludicrous to me. How have they tried to justify the charge to you? They must have said something!