Hi,
Just wondering if there are any views there on this. I have listed an investment property with a local agent for lease. On the agency agreement was a section where a timeframe is nominated for termination of agreement. The agent filled this in as 90 days. I changed this to read 21 days. They are not happy. Is there an industry standard on this or is it open.
Thankyou
There is no industry standard, and you can make it whatever you like. I would make it 2 weeks. Good work crunching them to 21 days; they hate that.
Thank you L.A Aussie. Just wanted to be sure.
No standard! Ideally, agents should let clients out of the lease whenever they want if they are not happy. I don't understand the rationale of holding a client to a contract if the client is not happy with the level of service.
The fact that many sponsored (say REI) agreements contain the 90 day clause would suggest its an industry standard.
Savvy investors are inserting their own clauses with regards to if the property becomes vacant that they can allow all agents to let the property.
Many agreements do say the owner can only appoint one agent and the client must give 90 days notice. Practically speaking transitioning a management to another agent is something that takes time. Rushing it may end up with tenants paying rent to the wrong agents and all that sort of mess.
If the agent is really bad and your next agent is keen for your business they may even payout any notice period and move the management early.
Similarly the agent must give notice if they want to end the agreement and sack owners.
Finally if you're going into the relationship looking for the exit perhaps you've got the wrong agent to begin with.
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