Hi Everyone,
Just wondering if it’s possible to get out of a contract with a property manager before the agreed time.
We have a property that has been vacant for over 3 months. I know that doesn’t sound like a very long time but our PM doesn’t really seem to care. I have constantly rang her and e-mailed her telling her that it’s urgent we get a tenant, but her standard reply is “oh we’ve advertised but it’s just a quiet time at this time of year. We’ll pick up in January”.
I know she has advertised the property each week but I think she’s done little else to secure a tenant.
Having spoken to another PM in the same area, he can’t believe that the property has been vacant for so long.
When I e-mailed my PM asking her to cease the contract as we wanted to sell (only said this to not cause any ill-feeling), she said she could only cease the contract once the property was sold.
Is there any way I can get out of this contract and transfer to another PM?
Any help would be much appreciated.Hi Bonnie,
Which state is your PM in as i am sure there are different rules for each state.
When you signed up with the PM did you not put in a review period where you could both decided if you wanted to carry on working with each other, our lawyers had a annual review put in to start 30 days proir to theannual review date, at this point we would either restart the contract or go somewhere else.
If you did not have this in there must be a termination clause where you have to give say 3 months notice, if you want rid of her that badly then it may well be worth paying her off.
Regarding ill feeling i would not worry about that the PM is probably not this is your money shes taking each month and she will continue taking it until you show her wh is in control, it’s your property not hers.
Good luck.
MGR
I would sign it up with another agent and get them to sort it out. I have done this a few times.
The other agent writes requesting release, you may have to sign a form or two but in the end they will eventually hand it over.
Byronent
Adelaide SAHi Bonnie
Similar to you, I had a PM who I was really unsatisfied with managing our property in Cairns. I just gave them notice that I would no longer be requiring their services and the reasons why. I had to wait 30 days before tranferring the property over to another PM. Now of course this ruling may vary from state to state but I am certain that it can be done. Further, there should be a clause provided to you with the contract stating any such issues of cancellation.
Best of luck….
Kind regards
Profiteer[biggrin]
Hi Bonnie
Recently changed a PM. Gave a months notice in writing and had to pay 50% of the management fees that would have been due had the agreement run it’s full term.
The new agent picked up the bill for this.
This was in WARegards
SMTM
50%?
Please state who the bastard was so no one else gets sucked in.
Byronent
Adelaide SASMTM,
Where is Minister Kobelke and DOCEP when you actually need them?
That property manager should be shot!
Robert Bou-Hamdan
Mortgage Adviser
http://www.mortgagepackaging.com.auFREE Finance-Related Newsletter – Click Here
Comments made are of a general nature and should not be construed as individual advice.
© 2004 Mortgage Packaging Pty LtdUsually when you change agents you have to pay for the 30 days to the old agent for the management. Usually you arrange with the new agent that to get your business they have to forgo their fee for the same 30 day period so you dont pay management twice on the same properties.
I did this recently with 7 properties in Ipswich and the new agent Ipswich Rentals and Sales were brilliant. Angie and Liz are great!!!
DD
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!All
50% liquidated damages is standard on REIWA Residential Lease Agreements where the owner terminates the agreement prior to expiration. Clause 15 from memory?
Is it different in other states?SMTM
Originally posted by Bonnie:Just wondering if it’s possible to get out of a contract with a property manager before the agreed time.
Clause 14 of your PM agreement gives you the exact conditions under which you can terminate your management agreement.
The standard agreement gives three options for termination of services of which wo include such as 28 days written notice, or immediate suspension if clause three of the agreement is not met by the PM.
As SMTM indicated the PM will ask for 50% of their expected fees unless you have crossed this clause out. The fee being calculated based on the time remaining on the exclusive authority to act – another reason why you should never sign a fixed term authority to act as PM..
If I were you I would mount a case based on their inability to perform their responsibility – ie locate a tenant. Having written records of issues you have had will be advantageous here.
Notwithstanding the 50% fee – you would be still better off advertising the property with other PMs and copping the 50% fee even if they do not waiver it.
This is far better off that leaving a property vacant for longer than you already have.
We have a property that has been vacant for over 3 months. I know that doesn’t sound like a very long time but our PM doesn’t really seem to care. I have constantly rang her and e-mailed her telling her that it’s urgent we get a tenant, but her standard reply is “oh we’ve advertised but it’s just a quiet time at this time of year. We’ll pick up in January”.
Where is your property? (Westminster?)
Have you held discussions with the PM to find out why people have rejected the property? Is it marketed at the right price? Are other properties in the area renting? For how much and what extras do they have?
The line about waiting for January is all bulldust. Rental properties have been renting well for the last three months in Perth. Sure December is quieter but…….what about November and October.
The Perth rental market is and has firmed up quite considerably in the latter part of the year.
By the way – three months is a long time. That is 25% of your rental income out the window.
Having spoken to another PM in the same area, he can’t believe that the property has been vacant for so long.
Could also be a ‘line’ to get your property onto their books. Ring a few other agents in the area to find out what they are saying.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping.
Showme each state is different and dont think you have to sign with standard conditions either. I always cross out 90 days and write 30 days in qld and cross out clauses i dont like, they sign them or dont get the business. Usually you can get some flexability but WA is a unique case.
The agents all think they are gods gift and when deregulation came in a few years ago all their pricing went up not down as in all other states.
Tassie I have just negotiated a management rate of 7.7% in Launceston for my clients and this is unprecedented. Usually 8.5% +GST there and some as high as 10%+GST. At these rediculous rates you have to ask whos investment is it after all.
I hate ripoff agents and love professional good service at a reasonable rate. All fine tuning of our portfolio before the next flat period is prompting this and with the tsunami effects not showing for 6-12 months, the gloom merchants out there have not yet begun to sprout their “woe is me”. Sort out your own house before the coming firesales.
Sorry to be a bit dark as im normally a bit happier than this but lets all be a bit thoughtful of losses, not only human but fauna and flaura too.
DD[confused2]
PS146 Certified Financial Planner
Don’t sweat the small stuff,and it’s all small stuff!!Hello all, my first posting![biggrin]
I am a PM of a lot of years experience and my advice would be to terminate the agreement immediately as an agent has an obligation and a duty of care under the code of conduct to do everyting in their power to find you a suitable tenant is the shortest possible time!
You have indicated that another agent has mentioned that they could find you a tenant straight away. Find out if the vacany rate is still low, the rent you are asking is current for the market or is there some problem with the property (the agent may not have stipulated) which is holding it back from being rented.
If I had a landlord who was so upset with me, then I would advise them to come and pick up the keys so as not to cause any more bad will.
I am sure the agent will not want to make any more bad vibes in pursing commission, etc.
I am not condoning changing agents or terminating agreements willy nilly! However if you are not being looked after, the agent is not doing their job as is required under the (in Qld) PAMD Act.
As is the case in the area I work, I would then approach a couple of higher profile agents in your area and advise that the first agent to find you a suitable tenant at the right rent, will receive the management.
Hope this helps!
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