Increase in property management fee

Question from Rebecca updated on 30th March 2012:

If I've signed a management authority and the commission is listed at 7.5% plus GST, can the agency start charging me 8.5% plus GST without having me sign a new authority and/or an amendment?

Our expert Juliet Robinson responded:

I suggest you look at the management authority that you signed. It may contain a provision which allows the agency to change its terms of business (which include the commission rate). This would normally require the agency to give you advance notice of the change, to give you time to discuss/dispute the increase. Bear in mind that the management of your property is based on an agreement between you and the agency. If you can agree on a fair price for the service, you will both be happy. If not, you may decide to look elsewhere for a property manager.

Quinovic's outstanding people and systems provide the most professional, effective and reliable residential property management service in the NZ market for over 22 years.

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