Lease Fee for rentals

[Brenden_E]

Does anyone here have experience knowing what a lease fee should be? Got quoted R2.2K for a R38K property. Is it tied to the value of the property - I quickly googled and says that's not allowed.

But Google is not always correct. Does anybody know for sure?

 

[Pineapple Smurf]

Does anyone here have experience knowing what a lease fee should be? Got quoted R2.2K for a R38K property. Is it tied to the value of the property - I quickly googled and says that's not allowed.

But Google is not always correct. Does anybody know for sure?

/ping @chrisc

 

[Brenden_E]

I should add, this is for a house, not a commercial property.

 

[Sepeng]

Seems awfully high; I'm aware some agents charge set amounts based on the property price - below R1 million say R500, over that maybe R1 000. I've personally never seen a fee that high but then I've never rented nor rented out a place with that high a rental. I honestly don't see how the higher price would influence the fee.
In theory, based on the Rental Housing Act, you can ask to see how that amount is made up - does it include application fees, credit checks, etc.

 

[syntax]

Does anyone here have experience knowing what a lease fee should be? Got quoted R2.2K for a R38K property. Is it tied to the value of the property - I quickly googled and says that's not allowed.

But Google is not always correct. Does anybody know for sure?

Is this the fee charged for the agent to rent the property out for you?
It is normally a percentage of the rental amount. If you are paying R2,2k for them to get your property rented out then that would be low.
Most high end agents charge 5 - 10% of the total rental contract amount

 

[Brenden_E]

Is this the fee charged for the agent to rent the property out for you?
It is normally a percentage of the rental amount. If you are paying R2,2k for them to get your property rented out then that would be low.
Most high end agents charge 5 - 10% of the total rental contract amount

This is the amount charged to the tenant as a once-off to initiate the lease.

 

[GhostSixFour]

It's 5,8% of the monthly price, sounds reasonable.
TBH, if you're renting for R38k a month and you are shocked by R2.2k, something has gone wrong in your finances.

 

[syntax]

This is the amount charged to the tenant as a once-off to initiate the lease.

I guess it depends. I see the agent I used in previous dealings charged a flat fee regardless but I dont see this fee as overly excessive either

 

[Brenden_E]

It's 5,8% of the monthly price, sounds reasonable.
TBH, if you're renting for R38k a month and you are shocked by R2.2k, something has gone wrong in your finances.

I'm asking because I am uninformed and trying to rectify my ignorance. I would like to think this behaviour is part of the reason why I can afford R38K a month =)

 

[Tman*]

A lease fee is a new scam that is being implemented by agents to extract money from a tenant after they were already paid by a landlord.

Tell the agent to get stuffed and use your own lease. If you dont have a lease: https://shop.tpn.co.za/Product/ResidentialPack

 

[Sepeng]

"While there is no law as to how much a rental agency or landlord can charge for a lease agreement, section 5(3)(p) of the Rental Housing Act stipulates “any costs in relation to contract of lease shall only be payable by the tenant upon proof of factual expenditure by the landlord.”"

You want HOW much?

Many tenants are starting to query the amounts they are being forced to pay to rental agents when signing a new lease. In one particular instance, the tenant had to fork out R975 for a lease fee as well as R150 for a credit ...

www.privateproperty.co.za

I reckon they're simply using the fact that the rent is so high that folk might be embarrassed or something to question it, or as some sort of filter maybe.

 

[RedViking]

OP I am with you. I don't care how much the rent is. Agents are scum and that is just a another fee they add for doing nothing. I think they may charge admin and contract fees, however they don't do nothing, just print the template.

 

[RedViking]

38K though.... Damn... Now that is status for you.

Post some pics please.

Gotta please the lady I guess... 38K.... Bliksem.