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Agency rebranding /existing agreement question

Discussion in 'Property Management' started by Owlet, 24th Jul, 2016.

  1. Owlet

    Owlet Well-Known Member

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    I have a long term tenant of 11 years. Currently on periodical lease. In that time PM bought rent roll and moved agencies twice, rebranding and now another rebranding. We have stayed for a number of reasons despite the poor management. We intended on using a new agency when this tenant leaves.

    I have been issued a new managing authority to sign. Do I need to sign this? (I can't remember what happened 3 years ago in this situ). My issue with signing is they expect exclusive authority for 120 days and then another 60 days continuing from the end of the exclusive authority period. We do not wish to use them beyond this tenancy.

    They have also added a special page for us to sign 'Item 11. Agent may end this authority - on giving the client 30 days written notice and a clause which references the OH&S act. I could see them using this clause as I get a sense that they do not want our property on their books (another story).

    Our tenant has paid via direct deposit for 11 years and not one late payment. For this reason I don't want the hassle of changing agencies and because there is a lack of quality agencies in the area (better the devil you know scenario). I would like to continue under the existing agreement. The tenant is elderly, has a physical and mental illness and community services are working with him to transition him to another residence.

    Where do I stand? What should I do?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    No you do not need to sign. It is merely an offer which you can accept or reject. But the existing agreement may come to an end and then you would need to find someone else to manage your property.
     
  3. Owlet

    Owlet Well-Known Member

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    I will need to dig out the last signed authority then and be prepared that they may end the authority.
    It has crossed my mind to self-manage until the tenant leaves as we have been doing everything (except collect the money) anyway.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    @Owlet - in this case, self-managing may be your best bet. If the agent is referring to you for all matters, payment is made by direct credit then you probably won't have any issue.

    Get yourself up to speed on the legislative requirements by reading the pdfs on the fair trading website in your state.
     
  5. Owlet

    Owlet Well-Known Member

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    Thanks will take a look
     
  6. wylie

    wylie Moderator Staff Member

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    If you did sign the new agreement, couldn't you amend the 120 day notice period so that you could give them seven days' notice that you won't be using them (though it sounds like you want to stay with them). I think others do that (I self manage, so I've never had to look at this).
     
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  7. Ricky Adelaide

    Ricky Adelaide PM in Adelaide -Elizabeth Salisbury Modbury Business Member

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    I doubt they are going to end your management agreement, if so they will be required to give you notice, at which point you can A) find a new agent, B) manage the property yourself, C) Counter offer them and keep them on or D) agree to their terms.

    If your agent isn't getting any troubles from the tenant and they are effectually getting money for jam by the sounds of it - considering they are not really earning their commission from what you have said. As a agent myself l would be happy to keep going on under a general agency in the case you have described. While it is better for them to get you to sign I would think they would be unlikely to push the issue as you could simply move to a no contract agency at that point anyway.

    I would just sit tight and do nothing until they make an issue about it or better yet move to a better agent/self manage now so your not stressing over it.
     
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  8. SeafordSunshine

    SeafordSunshine Well-Known Member

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    Hi,
    it sounds like your management may have been sold to a new agency.
    I would ask for references for this 'new agency' .
    I suggest you do some detective work.
    How much experience do this new agency have?
    Who are their key staff members?

    How many complaints have been made to VCAT about the licensee?
    I hope this helps,
     
  9. Ted Varrick

    Ted Varrick Well-Known Member

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    Cross out the bits you don't like in the new agreement, initial them, and then make an appointment to go and see them to get a revised agreement...
     
  10. citystar

    citystar Well-Known Member

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    Sign the agreement.... after you have crossed out 120 days and signed next to '0 days'. Don't like Clause 11, cross it out completely and sign next to it. They may have a tantrum about this but hold your ground and if they threaten have Option B to either self-manage or another PM to transfer the property too. Chances are they won't want to loose a long term (11 years is a long time) client from their rent roll.
     
  11. Big Will

    Big Will Well-Known Member

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    Cross out their 120 days and anything you don't want or your PM agreement will still be valid from the company you originally signed from.

    Like my employer gave us new employment agreements they cannot make us sign them and many of us didn't... Not our loss the new agreement some of us felt were not up to the same standard that we did have.