Hi all
One thing i am not confident with is agreements and whether one is leaving themselves open or miss something.
I hope someone can help with this it relates to my management agreement.
Under the heading
TERM OF MANAGEMENT AGREEMENT
Thes Agreement shall continue
A until terminated by either party giving notice of not less than……X days…..X months ORB until……months from the date of this Agreement: OR
C until….months from the first letting of the Property by the Manager
No additional terms:
Can someone that has some experience with this give me some idea which is the best arrangement.
I am currently with A for 60 days notice with the termination clause totally removed. I did this to not incurr costs as a termination fee which was in the clause. i understand this one as it is straight forward to me anyway.
B and C i am not sure if they are OK for the Landlord giving the landlord an out if the PM does not perform or do there job properly in the landlords best interest.
I am in South Australia.
kind regards
alfHi Alf,
I am a PM in Brisbane. You can always neg. the length of the termination period. Standard is 90 days, though it is now more common to have a 30 day notice period. If the property is vacant then you can pretty much just walk away. Its when you have a tenant in place that you are held to the agreement.
Amanda E.
Hi Amanda
Thanks for that so if you do not have a tenant in place then a landlord can walk away irrespective of what is in the PM agreement. Or does one still have to give the appropriate notice.
Interesting my tenant is vacating the premises 3 months early but still paying the rent. They have asked the PM to ask me to seek new tenants so they can be absolved of the rent. If not they understand that they are bound by the lease.
The PM indicated that i would have to pay 75% of the advertising cost and letting fee because of the situation. This seems fair as i would incur this at the end anyway.
regards
alfHi Alf
The tenant should pay the reletting costs for breaking a lease during the fixed period. This includes all advertising costs because the cost is caused by the tenant breaking the lease. It may OR may not have become necessary at the scheduled end of their lease to advertise for another tenant, who knows?, many tenants are walk- ins off the street, or unsolicited phone or net calls, no ads required. The future is not certain in this regard, but the broken lease IS certain, and so is the unscheduled advertising cost, so don’t pay any of it. The weak PM should insist on the tenant paying full costs in breaking a lease, what a woos. Hope it runs smooth for you.
By the way, put this PM on 30 days, they need watching on a short leash. [biggrin]
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
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Hi The Crest
Thanks for your reply when you say give them 30 days how do i do that. I mean i have a signed PM agreement that says 60 days.Do i have to give 60 days notice first and then renegotiate.
The other thing is that the tenants are company executives which use the place when they come over from interstate. They have said they may use it over a weekend from time to time. If they still have the lease up to its time.
I just figured that wouldn’t it be better to have a lease in place for another 12mths etc.
Any thoughts would be appreciated.
regards
alfHi Alf,
The Crest is correct. When tenants are breaking the lease agreement it is their responsibility to by the break lease fee (letting fee). They are also required to pay rent up to the start date of the new tenants. When tenants break their lease it is at no cost to the landlord. If the tenants have given notice and advised that they want to break their lease, then tell your PM to list and locate a new tenant for a fixed term lease.
Amanda E.
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