oo3c, you go girl!! You're the same age as me, kids similar too … you've made the decision to go, so be positive, you can do it, look for better. Getting rid of the negative crap in your life is liberating and you'll be surprised how different your life is.

I'm a firm believer that once you've decided what you want, there's no point hanging around … just do it. So, have a think about everything you really want to achieve now the decision has been made, figure out how you're going to do it, set some goals and work towards them … baby steps are good, start small as I suggested before.

I get where you're coming from and really appreciate that you want to do the right thing with the money and the kids and you … I would feel the same way. Its hard as the secondary income earner, kids, home, wife, mother … but women are strong and very resilient, so focus on your goals and it will all flow from there. Don't get bogged down in the nitty gritty, just focus on what you want and it will all come together.

Cheers
Michelle

Thanks for the follow-up Leharna. I'm sorry you had to go through it but great that you've posted it so that we can all learn from those lessons.

thecrest, I'm interested in answers to your own questions …

Which Govt Dept licences PMs in NSW?
Under what Act are PMs licenced ?

I live in WA. Property Managers are registered under the Real Estate and Business Agents Supervisory Board (REBA).
PMs are governed under the Real Estate and Business Agents Act 1978 and the Code of Conduct for
Agents and Sales Representatives (REBA).

According to the REBA "You and Your Property Manager Guide", the Code of Conduct specifies:

The Code of Conduct for Agents  and Sales Representatives sets out  standards of practice for all agents  and their sales representatives,  including property managers in  Western Australia. These  requirements protect you by  promoting and enforcing appropriate  standards of conduct in the  marketplace.

A number of these standards refer  to the Written Authority, which is a  legally binding contract between you  (the principal) and the licensed real  estate agency. The Written Authority  authorises a registered property  manager to manage your property  for you.

The responsibilities of agents and  property managers under the Code of  Conduct include requirements to:

•         act in your best interests, except  where it would be unreasonable  or improper to do so;

•         follow your instructions, except  where it would be unreasonable  or improper to do so;

•         act fairly and honestly;

•         exercise skill, care and diligence;

•         disclose in writing if any supplier  of goods or services (such as  cleaners, carpenters etc)  recommended to you has a  ‘significant relationship,  connection or affinity’ with the  agency;

•         promptly provide information to  you about expenses paid on your  behalf;

•          not knowingly mislead or deceive  any parties in negotiations or a  transaction;

•         not engage in harsh or  unconscionable conduct;

•         not use or disclose any  confidential information obtained  while acting for you unless  permitted to do so by law;

•         not advertise or offer for lease a  property for an amount, or terms,  different from that authorised by  you;

•         not seek payment to others on  your behalf for fees that exceed  the amount agreed in the Written  Authority, or is not initialled in the  Written Authority; and

•         not seek any payment of a fee  that is unjust in light of the  Written Authority and other  circumstances.

The Code of Conduct requires that  property managers and their  unregistered assistants be  supervised by the licensed real  estate agent in charge of the agency  at all times.

This, of course, doesn't cover the exact problem that Leharna had with her PM, however, the guide goes on further to say this:

Negotiate, then get it in  writing! As with any business transaction, it  is important that you are clear in  your own mind what exactly you  require concerning the management  of your rental property.  

Some questions you should ask  yourself about the management of  the property include:

•  How promptly do you wish to be  told if your tenant is behind with  the rent?   

•  Do you want to be consulted  before any repairs or  maintenance are carried out, no  matter how small? Or would you  prefer to be contacted only when  the amount exceeds a set limit?   

•  How often do you want property  inspections carried out on your  property?

•  For how long do you wish to  engage the real estate agency,  known as the period of agency?

•  Do you wish to be involved each  time a tenant is selected?

Any provisions, like the ones  detailed above, need to be agreed  in writing preferably in the Written  Authority.  The Written Authority that you sign  to authorise a real estate agency to  manage your property for you is a  legally binding contract. This means  that both you and the real estate  agency are obliged to fulfil the  requirements of the Written  Authority.  The Written Authority can vary  between agencies, so it is important  that you read the contract carefully.   

I think this here is the lesson we can learn from Leharna's experience. Get it in writing and don't be afraid to negotiate your terms with the PM; then you'll have recourse if its not done.

Cheers
Michelle

This is exactly why I took back both my properties from the PM and handle them myself. I have a great relationship with my tenants and they've told me how much they appreciate the personal contact they have with me.

I'll admit to being a little hesitant that I'd be able to find the 'right' tenant and not have my houses trashed but I was assured by a fellow investor that as a paramedic I have a great sense for good/bad people. I've learned to trust my instincts and I've been rewarded with great tenants.

Taking on my own property management is not something I took on lightly. I visited at least three PMs in my area, some of whom I or someone I knew had experience with, but I wasn't happy with the fees or their promises that they could do better than my existing PM (who was near to hopeless).

I've been managing my own IPs now for three years and its been great! The only way you'll get the PMs to pay any attention is with your feet … if you don't like the service go elsewhere. Don't be afraid to bang your fist on the counter to get what you want from a PM; remind them who's paying their wages!