Appointing a property manager. Legal checks on the contract

Hi all,

I am just about to settle on my first intentional IP ( my only other is my former PPOR which my brother now rents so I am new to this ) and I am reading through the contract between myself and the property manager. It advises that I seek independent legal advice on the contract.

My question is, who do I show this to? I know that for almost any other aspect of property investing you are able to hire the help of a professional but I have never heard of anyone getting help in checking this part of the deal over to ensure I am not being had over a barrel with my pants down.

I am confident in the genuine nature of the manager but then.... what do I know?

Any help and tips would be appreciated.

Thanks

Paul

 

I'm not exactly sure what you mean - if its trying to get legal advice, then you have to see a lawyer - no one else can give legal advice!

 

Would i go have the contract i have with the property manager checked over by a lawyer? What type of lawyer is familiar with this type of contract.

 

most people do not use a lawyer to check.

If you do want to get it checked by a solicitor, a business lawyer can check for you.

Look for:
A service guarantee, does the agency guarantee to stand by their service?

Hidden costs - above the managent fees.

How to get out if it does not work out.

After hours emergency procedure. I'm working right now on transferring 15 properties from another agency (one owner) because the agency switches all phones off after 5 and on weekends.
The emergency procedure is filling a form on thier website which hopefully goes gets seen by one of the owners.
Ensure there is a person and a number that can be called.

Also ensure the property manager is willing to work after hours and on weekends for open inspections when the property is vacant. My pet hate is when they do open inspections at 4:45 to 5pm on their way home. Apathy and job dissatisfaction makes bad property management.

I'm hiring a new person to help with overload at the moment, including leasing and I'm ensuring they are able to work after hours for open inspections.
5:30 to 7:30 pm are typical times plus weekends.

Hope that helps with choosing and there are some considerations just as important as contracts.,

 

Potentially - although it is perhaps overkill to rack up legal fees for this sort of thing.

If you like, PM me and I don't mind going through the management contract with you - no charge.

 

Those are very helpful tips @Xenia. I need to sort out a few things with our PM. I will have no problem signing up with you should you ever expand your business to Sydney

 

That is fantastic of you to offer that but I would not want to put you out unnecessarily. I will take another look through it with fresh eyes as, the more I look at it the more it makes sense. I think I have just been getting overwhelmed with the process of buying and setting up management etc but the buying part is coming to the end now despite a few bumps in the road it should be simple from here ( famous last words as we settle this coming Friday ). If I get stuck I will definitely take you up on that. With the fantastic tips I have been offered by @Xenia I will see if it all makes sense.

What's the worst that can happen? I am left empty for a little while while I have to get out of this contract and find a new manager and tenant? I have buffers in place at the moment but would rather not have to use them on something like this if I do not have to.

I have faith in the current property manager and I think this is similar to the analysis paralysis. At some point you have to have a little faith that it will all work out and just take that step. It's never a failure... it is either a lesson or a success!!

Thanks all.