Do condo owners pay 1 months rent commission every year to your 'property manager'?

[maigeng]

I paid an agent in Pattaya 1 month's rent to find a tenant for my condo when the lease was signed last year.

The tenant pays their rent directly into my Thai bank account each month and I then email them a statement/receipt each month.

The lease is coming up for renewal and the agent is asking for their 1 month commission again.

 

One month's rent is 8.33% which is pretty high when they don't even collect the rent on my behalf.

Is it standard practice to pay your managing agent a 1 month commission every year or am I being ripped off?

Do other condo owners who rent out their property pay one month's rent as commission each year?

Edited June 2, 2017 by maigeng

[KittenKong]

It will all depend on what it says in the contract that you originally signed with the agent.

[Peterw42]

8-10% is pretty standard but usually its taken out of the rent every month. My GF does rentals and takes 10% after collecting the rent, so maybe 8% when you collect the rent is reasonable.

[trogers]

My building Juristic (and not building manager) charges Bt10,000 for securing a walk-in tenant per contract, and not per year. The money is banked into a separate fund and distributed annually as bonus to the staff.

 

Rental rates here ranges from Bt40-65k/mth.

 

The staff here do not actively look for tenants. But the building location sells itself, with occupancy rate above 90%.

 

Extension of contracts carry no further charges. 

[11223344]

wow that's a rip-off ... imo should be only if they find new tenant

[juice777]

wow that's a rip-off ... imo should be only if they find new tenant

Yes that's the way it works in the UK if I remember correctly. 1 month to find a Tennant. Then a management fee if they do anything after that. To the op What dose you contract say if it don't say anything why not just resign your Tennant your self.

 

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[RowdyAlpha]

Yep they take 1 month of mine and it's sort of the same in Oz but it's about 5-7% of the weekly rent.

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[maigeng]

18 hours ago, RowdyAlpha said:

Yep they take 1 month of mine and it's sort of the same in Oz but it's about 5-7% of the weekly rent.

Sent from my MHA-L29 using Thailand Forum - Thaivisa mobile app
 

Yes but in Oz they actually 'manage' your property throughout the year and collect the rent. My tenant pays rent direct into my account.

 

===

 

I sent them this email:

 

Hi Khun xxx,

 

Can you please tell me what this payment for.

My understanding is I pay you one month's commission for finding a tenant but not every year because you are not managing the property. You don't collect the rent or do anything else throughout the year. The tenant deals with me directly and pays the rent into my account and I prepare and send her a monthly statement. 

Please tell me what services you are providing for 8.33% or one month's commission?

 

Regards,

[juice777]

Yes but in Oz they actually 'manage' your property throughout the year and collect the rent. My tenant pays rent direct into my account.
 
===

 
I sent them this email:

 

Hi Khun xxx,

 

Can you please tell me what this payment for.

My understanding is I pay you one month's commission for finding a tenant but not every year because you are not managing the property. You don't collect the rent or do anything else throughout the year. The tenant deals with me directly and pays the rent into my account and I prepare and send her a monthly statement. 

Please tell me what services you are providing for 8.33% or one month's commission?

 

Regards,

Did you check your contact? if there is nothing in there just resign yourself.

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[maigeng]

5 minutes ago, juice777 said:

Did you check your contact? if there is nothing in there just resign yourself.

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can't find it now but if this annual fee is mentioned then I'm sure she'll send a copy of the contract.
I can't find one and don't remember signing a management contract with the agency, but I did sign a 12mth lease contract between the tenant and myself. She might send me a copy if one exists.

Edited June 4, 2017 by maigeng

[juice777]

Sounds like there is nothing she can do and is just trying her luck. If you are sure there is no contract just resign yourself. But be aware that if you are not doing everything correct and 100% legal. Like paying tax and I believe you need a work permit now she could report you.

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[maigeng]

Yep I'm sure they try it on everyone and some go for it and some say no. I can't see much difference between self managing and using an agent who offers no service throughout the year. Why do you need a work permit to receive rental income from a property you own? I'm not working there.

[juice777]

Yep I'm sure they try it on everyone and some go for it and some say no. I can't see much difference between self managing and using an agent who offers no service throughout the year. Why do you need a work permit to receive rental income from a property you own? I'm not working there.

I don't know but because I am not a landlord in this country. But I sure I read that they changed the rules a few years ago. But I don't know to much about it. I am just saying she might try to make trouble for you in you cut her out the loop. But I don't know the laws here for renting out property but I am sure three is lots of people bending them. I wouldn't worry about it to much just resign yourself as long as you are sure there is no contract.

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[juice777]

Yep I'm sure they try it on everyone and some go for it and some say no. I can't see much difference between self managing and using an agent who offers no service throughout the year. Why do you need a work permit to receive rental income from a property you own? I'm not working there.

Read this thread but you might be right but I did read something before about it before . I don't have time to read it now.

 

https://www.thaivisa.com/forum/index.php?/topic/930833-If-you-rent-out-your-condo--work-permit-required?

 

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[maigeng]

18 minutes ago, juice777 said:

Read this thread but you might be right but I did read something before about it before . I don't have time to read it now.

 

https://www.thaivisa.com/forum/index.php?/topic/930833-If-you-rent-out-your-condo--work-permit-required?

 

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Righto i'll have a look and wait for her to reply to my email.

 

Righto i'll have a look and wait for her reply to my email.

[Senechal]

Yep. Rent 10 condos and your revenue is the equal to the guy who owns the condo.

 

Not a bad gig if you're good at it.

 

 

[BEVUP]

14 hours ago, maigeng said:

Yep I'm sure they try it on everyone and some go for it and some say no. I can't see much difference between self managing and using an agent who offers no service throughout the year. Why do you need a work permit to receive rental income from a property you own? I'm not working there.

Maybe because it's classed as income 

[BEVUP]

On 6/2/2017 at 7:31 PM, KittenKong said:

It will all depend on what it says in the contract that you originally signed with the agent.

As mentioned but i know a person (tenant ) who actually had to pay the 1 mth - he wasn't happy as one would of expected the land lord to pay the agent for doing their job 

[smutcakes]

Perhaps you are in some rental management pool? Maybe unaware to you they are organising things for your tenant? cleaning, pest control etc.

[maigeng]

On 6/5/2017 at 10:51 AM, BEVUP said:

Maybe because it's classed as income 

Big difference between working in Scamland and receiving income there. By your example anyone who owns shares listed on the SET (Thai stock exchange) also needs a work permit because the dividends have been derived in Scamland..

 

I've just checked the contract which is a management agreement and lease combined and this is one of the clauses:

 

The 'landlord' agrees to pay the 'agent' a commission having introduced both parties. This commission is payable to 'agent' prior to commencement of occupation and per each extension of this lease agreement.

 

However they fail to define what the commission is.