Hi,
Our investment property is currently managed by a Property Management company. We've had too many problems with them, and they've made a lot of mistakes, such as charging us for interest on late payment of strata fees! (which they are responsible to pay on time).
Anyway, the 'Exclusive Management Authority for Residential Premises' contract runs out in May, and we wish to then manage the property ourselves, without an agent/property manager.
A have a question, which I couldn't find any answer…
The property is currently tenanted until the end of the year. If the contract between us and the property manager is terminated, does that mean the tenancy contract needs to be rewritten between just ourselves and the tenant? Or does the tenant keep paying the proprety manager until the end of the year (effectively meaning I'm stuck with the property manager until the end of the tenancy agreement)?
I imagine, since I paid the property manager to find the tennant, I have every right to not renew the property management contract, and continue managing the property myself with the existing tennant.
I appreciate your help and advice.
Thanks.
pijoko wrote:If the contract between us and the property manager is terminated, does that mean the tenancy contract needs to be rewritten between just ourselves and the tenant?The tenancy contract (lease) is already between you and the tenant – just read the lease
. The agent merely negotiated and signed for on your behalf. So terminate the PM agreement by all means. Nothing else really needs to be done except advising the rental bond holder & the tenants of where you want rent to be paid etc.pijoko wrote:I imagine, since I paid the property manager to find the tennant, I have every right to not renew the property management contract, and continue managing the property myself with the existing tennant.You’re absolutely right. Check the management agreement to see if there is a notice period for terminating the contract after the exclusive period ends. This might be something like 14 days after written notice, but even if there is no compulsory notice period, it’s good to give the PM 14 days anyway so you can transfer bills to your address and contact the tenants re the new rent payment arrangements in the meantime. Don’t rely on the PM to do this.
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I DIY manage with Rentwise.Thanks for your answers. I'm currently writing an email to my PM advising them that I wish to terminate the contract (I imagine that is sufficient for 'in writing'?)
Yes, there is a 28 notice period, so good thing I checked.
Thanks again.
If you don't already have one I would recommend getting a PO Box so the tenant doesn't know your actual address. If your listed in the white pages I would recommend getting in the nearest CBD and getting it redirected.
Try to keep a distance between yourself and the tenant.maree_bradross wrote:If you don't already have one I would recommend getting a PO Box so the tenant doesn't know your actual address. If your listed in the white pages I would recommend getting in the nearest CBD and getting it redirected.
Try to keep a distance between yourself and the tenant.Couldn't agree more. I have a PO box, mobile phone number and email address for tenants to contact me. Am not listed in the phone book and my address is not on the electoral roll. Tenants know they can contact me anytime, preferably via email or SMS and I always respond within 24 hours, usually much less.
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I DIY manage with Rentwise.Thanks for all your suggestions.
I'm just wondering how the 'hand over' will occur. Should I just turn up at the property and advise the current tenant that, as the owner, I will be taking over the property management, and give my contact details along with new bank account details.
What is the usual procedure here? I guess I should also get my current agent to be involved in the handover, so that the tenant knows I'm legitimate?
The property manager is very lazy, someone was meant to contact me 2 weeks ago in regards to finishing up with them, but nothing, so I guess I'll have to probe them.
I've prepared a list of things I need to do..
– Get a copy of the current tenancy agreement from agent
– Find out bond details for current tenant
– Organise return of agent keys for property
– Agent to change mailing address for invoices etc.
– Notify tenant of management change
– Give tenant new bank account details
– Give tenant my contact details
– Get contact details for the tenant
– Organise dates of property inspectionsand maybe…
– Get list of good tradespeople (for future)Any advice is much appreciated.
pijoko wrote:Thanks for all your suggestions.I'm just wondering how the 'hand over' will occur. Should I just turn up at the property and advise the current tenant that, as the owner, I will be taking over the property management, and give my contact details along with new bank account details.
What is the usual procedure here? I guess I should also get my current agent to be involved in the handover, so that the tenant knows I'm legitimate?
The property manager is very lazy, someone was meant to contact me 2 weeks ago in regards to finishing up with them, but nothing, so I guess I'll have to probe them.
I've prepared a list of things I need to do..
– Get a copy of the current tenancy agreement from agent
– Find out bond details for current tenant
– Organise return of agent keys for property
– Agent to change mailing address for invoices etc.
– Notify tenant of management change
– Give tenant new bank account details
– Give tenant my contact details
– Get contact details for the tenant
– Organise dates of property inspectionsand maybe…
– Get list of good tradespeople (for future)Any advice is much appreciated.
I'd set a time with your PM very soon for you to pick up all the paperwork, keys, etc. Everything should be ready for you at this time, including a reconciliation of any money they are holding for you on trust and a cheque/EFT receipt for the return of this money to you.
In the meantime, write a note to the tenant advising that you'll be self-managing and enclosing your contact and bank account details. If you have their phone number, you may wish to ring and introduce yourself.
You can also change all the bills to your address right now – you don't need the agent to do that. Once you have the paperwork from the agent, attend to the relevant bond transfer form.
If your PM is uncooperative, tell them you will lodge a complaint with your State's Consumer Affairs Department and Real Estate Institute unless they play ball. Also tell them you'll be spreading the word near and far about their lack of professionalism.
For more information on switching from a PM to self-managing, check out the Rentwise blog: http://blog.rentwise.com.au/index.php/2010/04/21/guide-to-switching-from-a-property-manager-to-self-management/
Good luck!
Many thanks. Very useful information and advice.
Good day, folks. I understand that this thread is pretty old, however the issue of property management termination is a new and hot topic for me. I want to end the property management agreement with my current firm, keep my current tenant and manage the property myself. However, the standard property management agreement for South Carolina indicates that if the property is leased through the efforts of the broker and the lease terms run longer than the terms of the property management agreement, the broker shall continue to be compensated according to the contract. Is there a way for me to end the property management agreement, keep the current tenant and not be bound to pay the property management firm for as long as the current tenant (a really good one) is in the property? The property management firm has agreed to an arrangement that would allow me to pay them a 40% of one months rent leasing fee in order to get out of that ongoing commitment should the tenant stay, however, I don’t know the best way to draw up language that commits us to that.
. The agent merely negotiated and signed for on your behalf. So terminate the PM agreement by all means. Nothing else really needs to be done except advising the rental bond holder & the tenants of where you want rent to be paid etc.
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