VIC Rental agency charges

[James22]

Hi there , in light of Covid 19 we have dropped our rent at our rental property by around 30% for three months . Our real estate agent obliged but they did not drop their management fees . We pay around 7%. After the rent was dropped they still charged us the same amount as they were before . We asked them about it and they claimed the tenants were getting a ' rent credit ' and not a drop in rent . Is this correct ?

Thanks for any help

 

[Tim W]

And did you reply

"And what's a rent credit, then?"

 

[James22]

Hi there , in light of Covid 19 we have dropped our rent at our rental property by around 30% for three months . Our real estate agent obliged but they did not drop their management fees . We pay around 7%. After the rent was dropped they still charged us the same amount as they were before . We asked them about it and they claimed the tenants were getting a ' rent credit ' and not a drop in rent . Is this correct ?

Thanks for any help

Hi Tim

No , i did some research on a ' rent credit ' and it says it relates to people that are purchasing the house while renting ? I couldnt find any decent information and that is why im here , I havent asked them directly as they will give me some justification i dont understand !

 

[Tim W]

I suggest to you that it's a nonsense term,
being used to give the impression that some/any of the foregone rent
will somehow be recoverable later on.
Is your agent paid a flat fee, or a percentage of the rent for the property?