All Topics / General Property / Termination of Property Management Agreement

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  • Profile photo of NiroNiro
    Participant
    @mangalakodgoda
    Join Date: 2014
    Post Count: 1
    September 3, 2014 - 1:53 pm

    Hi There

    Few months ago I invested in a 2br Unit with tenants. At the time I was under the pump at work and other matters. Hence, hired a property manager to deal with the matters and signed up a contract with them to manage it. Originally, I sent the signed management agreement keeping the end date of the contract corresponding to the end date of the existing tenancy agreement. However, the property management company replied to me that the agreement should be for 2 years (ending April 2016). Due to then situation, I amended the agreement period as they suggested and sent back to them. I did not get any investment property advice then. However, I want to terminate the contract with the property management company now.

    I am thinking of ether self-managing it or moving in as I will be out of work for several more months to come.
    Can I do it or what should I do now?

    Please advise.
    Many thanks
    Niro

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404
    September 3, 2014 - 5:16 pm

    When you sign it’s nolt usually for a set time. You just sign it and it will state the notice you need to give.
    Check your contract. If it does indeed say that it will end April 2016 then that’s what you signed so you may have to abide by it.
    Usually it’s 2 months notice but I cross that out.

    You don’t say what state you are in so maybe it’s different in different states. Check with your local authority to see if the end date thing is legal.

    If you move in, it’s not an issue as therre will be no rent to collect, therefore no fees due to them. If you want to self manage though you still owe them their commission if you can’t terminate the agreement.

    good luck.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    September 3, 2014 - 9:54 pm

    Hi Niro

    Are you 100% sure you want to self manage?

    Things may be going smoothly now – but that’s not when the property manager earns their money, it’s when things go wrong….which is inevitable, it happens and a good PM is a handy person to have on your side.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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