2k admin fees on lease. Reasonable?

sjm

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If he has engaged their service he has, implicitly agreed to paying, whether he signed or not.
What that price is at this stage is what the issue is about.

What service is free in this world? Are yours?

Is this agent an estate agent?

A renter doesn't engage the services of an estate agent, they work on behalf of the property owner. If the estate agent informs a prospective renter (before he signs a lease) that there is an additional fee which hadn't been mentioned before, the prospective renter is well within his rights to walk away without paying anything to the agent.
 

F1 Fan

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Is this agent an estate agent?

A renter doesn't engage the services of an estate agent, they work on behalf of the property owner. If the estate agent informs a prospective renter (before he signs a lease) that there is an additional fee which hadn't been mentioned before, the prospective renter is well within his rights to walk away without paying anything to the agent.

Yep exactly. And any service that is not offered for free should be made explicit by the party offering the service.

@MirageF1, you claim that this is not a moral issue, and yet your line of questioning is entirely focused on the moral narrative.

Legally, if he has given no commitment, verbal or otherwise, he is well within his rights to walk away.
 

dontspeak

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The personal attacks in this thread are unnecessary.

All I did was view the flat, agreed verbally with the agent that I was willing to take the flat. When she mentioned the 2k admin fees for credit checks, lease agreement, etc, I told her I would think about it and revert back. I came here, posted this thread, got some answers, and called her back telling her that I was not happy with the 2k admin fee. I did not commit to anything therefore I don't owe the agent a single cent.
 

F1 Fan

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The personal attacks in this thread are unnecessary.

All I did was view the flat, agreed verbally with the agent that I was willing to take the flat. When she mentioned the 2k admin fees for credit checks, lease agreement, etc, I told her I would think about it and revert back. I came here, posted this thread, got some answers, and called her back telling her that I was not happy with the 2k admin fee. I did not commit to anything therefore I don't owe the agent a single cent.

Agreed.

What was the outcome? Did they drop the admin costs or did you walk away?
 

dontspeak

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I simply walked away. They didn't bother me after letting them know that I wasn't under any circumstances willing to fork out a 2k lease fee.
Agreed.

What was the outcome? Did they drop the admin costs or did you walk away?
 

The Free Radical

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Bullshit, it's you requesting their service, not them, get your facts straight.

Or do you just stick your finger in the pie , lick it, and like a child ask the price later.

Glad I don't have a shop with you inside.

No, you place a price tag on it first.
 

Mr G

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So you test drive a car, verbally agree to buy it, and when you go in to sign papers the dealer tells you there's an extra R10k for admin costs. Since you "requested their service", are you obligated to pay the extra R10k?

Fact is, nothing was signed, and OP is under no obligation at all. Glad he walked away.
 

acidrain

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Found the same thing when looking for a new place in July. Agencies wanted between R1500 and R2500 admin fee to draw up the contract (which we all know is the same generic thing just with some personal details changed) so told the gf they can shove it.

Ended up going direct to owner on another place. No fees at all.

I honestly still wonder why the admin fee rests on the tenant. It's the owners property, they should pay the admin fees if any, but the agencies know they probably lose business doing that so rather take a chance on the tenant.
 

eg2505

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just like recruiters and estate agents and other "sales" agents,

need to charge you extra, for nothing,
or for them to feel "special"
 

acidrain

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just like recruiters and estate agents and other "sales" agents,

need to charge you extra, for nothing,
or for them to feel "special"

It's like the old days of business's charging you for a quote.
 

eg2505

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It's like the old days of business's charging you for a quote.

agreed, got to generate "some" sort of profit, even if people dont want to deal with you afterwards.
and inadvertently driving customers away with your silly and pointless policies.
 

Becca102

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Oct 31, 2020
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But you did use their service... without, I'm assuming as you never mentioned or stated otherwise, confirming all charges, hidden or otherwise, expressly implied or not.

It's ultimately, always your responsibility to ensure you know what the costs are going to be when using a 3rd party for work/service/delivery.

At the very least to enquire and get them to commit to an approximate cost, at least in writing/email and have that on record prior to engaging a service.

Saves a lot of hassle, snot en trane down the road, ultimately as you are now witnessing..
Found the same thing when looking for a new place in July. Agencies wanted between R1500 and R2500 admin fee to draw up the contract (which we all know is the same generic thing just with some personal details changed) so told the gf they can shove it.

Ended up going direct to owner on another place. No fees at all.

I honestly still wonder why the admin fee rests on the tenant. It's the owners property, they should pay the admin fees if any, but the agencies know they probably lose business doing that so rather take a chance on the tenant.
I am currently in this situation. I applied for a place in Cape Town and they charged me R200 as an application fee. Thereafter, I got approved and they sent me a lease form before I couldn’t view the place. I went to view the place and wasn’t happy with it. I never signed their lease agreement and now they’re on my case with a R1200 lease admin fee, which I’m struggling to understand what I’m paying for cause I never signed the lease. When I asked them about it they referred me to some clause on the application form which says, “all APPROVED applicants must pay a lease admin fee of R1200”. Am I wrong to think that approved applicant means someone who is taking the place? I am not taking the place and I never signed the lease agreement; so do I need to pay that amount?
 

droidx

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I am currently in this situation. I applied for a place in Cape Town and they charged me R200 as an application fee. Thereafter, I got approved and they sent me a lease form before I couldn’t view the place. I went to view the place and wasn’t happy with it. I never signed their lease agreement and now they’re on my case with a R1200 lease admin fee, which I’m struggling to understand what I’m paying for cause I never signed the lease. When I asked them about it they referred me to some clause on the application form which says, “all APPROVED applicants must pay a lease admin fee of R1200”. Am I wrong to think that approved applicant means someone who is taking the place? I am not taking the place and I never signed the lease agreement; so do I need to pay that amount?
They charged you R200 for their trouble in processing the application.
Whether you are approved or not doesn't generate extra effort on their side. Perhaps this fee is for processing the lease, in which case I read it the same as you do in that the person who actually agrees on the lease forks out the additional fee.

I would definitely not pay this fee, they are trying their luck with ambiguous wording.
I wonder how many people they catch out with this and whether it is basis for reporting this practice to the EASB. Surely this is not ethical.
 

Moto Guzzi

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1-APPLIED
1a-Application fee=R200....................??
1b-Place not viewed
2-Approved........................................?
2a-Lease form
2b-went to view place-Not happy
2c-Nevr signed lease asgreement
3-Admin Fee=R1200.........................??
4-Not moved in, not signed, no service/product taken.

Good bussiness or bad bussiness Trends-?
Is it fair to make money from a portion that should be the risk from the bussinessowner in the 1st place, the rist hoping it can sell something to smebody-?

1st Question:
May I ask what is the primary bussiness here, IE how money for the purpose of the bussiness , if accepted is agreed apon if place is taken, and this will be the income to the bussiness for as long as it's leased.
2nd Question:
Why are Application Fee & Admin Fee even necessary in the 1st place-? The fact that income is derived from the main purpose should cover all expenses and a reasonable profit to the bussiness.
Bad trends has a way to increase in value, increase in quantity, what fee is next-?
Work for money, or just sit back, relax and money flow in.....No man.
 

Moto Guzzi

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If he has engaged their service he has, implicitly agreed to paying, whether he signed or not.
What that price is at this stage is what the issue is about.

What service is free in this world? Are yours?
What service is free in this world? Are yours? -Arrogance-?

So do you run an Fee-Service, Admin Service, or a Rental service-?
So tell me, whoever take the lease, what is the value of the lease based on, is it not the purpose of the bussiness in this case, why Willy Niily dreamed up charges-?? This is why capitalism needs to be fixed(One of many) to prevent it from running itself in the ground over time and take whole societies with it down. (I am for reasonable capitalism, but absiolutely hate a hijacked ideology).
 
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Becca102

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Oct 31, 2020
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They charged you R200 for their trouble in processing the application.
Whether you are approved or not doesn't generate extra effort on their side. Perhaps this fee is for processing the lease, in which case I read it the same as you do in that the person who actually agrees on the lease forks out the additional fee.

I would definitely not pay this fee, they are trying their luck with ambiguous wording.
I wonder how many people they catch out with this and whether it is basis for reporting this practice to the EASB. Surely this is not ethical.
I’ve also been asking myself the same thing - Do they charge everyone they approve? it certainly isn’t ethical.
The lease at this point hasn’t had any processing, all they did was probably take someone’s old lease and change personal details to mine and sent it to me. So I must pay for that?? Wow, this people are ripping people off!
 

Johnatan56

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Aug 23, 2013
Messages
29,727
1-APPLIED
1a-Application fee=R200....................??
1b-Place not viewed
2-Approved........................................?
2a-Lease form
2b-went to view place-Not happy
2c-Nevr signed lease asgreement
3-Admin Fee=R1200.........................??
4-Not moved in, not signed, no service/product taken.

Good bussiness or bad bussiness Trends-?
Is it fair to make money from a portion that should be the risk from the bussinessowner in the 1st place, the rist hoping it can sell something to smebody-?

1st Question:
May I ask what is the primary bussiness here, IE how money for the purpose of the bussiness , if accepted is agreed apon if place is taken, and this will be the income to the bussiness for as long as it's leased.
2nd Question:
Why are Application Fee & Admin Fee even necessary in the 1st place-? The fact that income is derived from the main purpose should cover all expenses and a reasonable profit to the bussiness.
Bad trends has a way to increase in value, increase in quantity, what fee is next-?
Work for money, or just sit back, relax and money flow in.....No man.
You paid R200 before even looking at the place? Why would you do that?
 
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