Hi All
I recently (10 days) signed a rental management agreement with an agent. The financials are so tight that I am considering finding my own tenant – have done this before successfully.
Question is do you think the agent will sting me for 'liquidated damages'? I have signed the agreement but have not received a signed copy from the agent (if that means anything).
The contract includes: ‘liquidated damages’ to be paid to the agent at the current rate of 50 per cent of the management fee that the agent would be expected to receive for the
unexpired period of agency.'
Thanks
Probably. An agent is not going to walk about from money that easy.
Is there a cooling off period? A notice period?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Should add there is no tenant in place
Hi Lilyhutch.
Need a lawyer's opinion on this one, hmmmm there's one around here somewhere….
Suggestions
Visit the REA and have a friendly chat.
Maybe pay them to at least instal a tenant for you then you self manage thereafter.
Most REAs don't want reluctant captive landlords, they can be more nuisance cost and trouble than they're worth.
Bear in mind you signed an agreement, and you'd probably complain if they didn't honor it.
Good luck
cheers
thecrest
thecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Easy- It's on the contract.
Why not let them get a tenant. All checks done etc then give them the required notice.
Hi Lily
Best approach i think is always the honest one – talk to the agent, explain the situation and go from there.
Wether or not they hold you to the termination fee i would think is largely dependent on how much / if any work they have done on your property…
Eg. Have they already completed the in-going condition report
Have they already paid to advertise it on realestate.com, Domain etc
Have they already completed open homes and started processing applications.
In regards to self-managing, id be very cautious… i know it sounds like the cheap / easy option but it's only going to take a few very minor things to go wrong because of your inexperience & / or lack of knowledge and the money that you would have paid a managing agent will seem minimal…
Matt
Ps. If your current agent hasn't at least advertised the property and starting running open homes / processing applications (having had an agency agreement in place for over 10 days with the property being vacant) i want to know why the hell not !
Thanks All.
Spoke to the agent who will waive the letting fee (2 weeks rent) as a compromise so I'm happy to run with them.
Make sure you don't go signing another management agreement before you have the first one cancelled. Unless you ticked open agency. (Not single agency) so reserved the right to have multiple agents looking for tenants.
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