Join Australia's most dynamic and respected property investment community

Buying IP With PM Already In-Place

Discussion in 'Property Management' started by Michael.Knight, 14th Jul, 2015.

  1. Michael.Knight

    Michael.Knight Member

    Joined:
    2nd Jul, 2015
    Posts:
    23
    Location:
    Melbourne, VIC
    Hi guys,

    Just wondering when you buy an existing investment property with tenants staying on, do I have to keep the current property manager? Or can I as the new owner, on settlement bring-in my preferred manager?

    The tenants have signed a fixed lease, so I don't know if the manager must stay on as well...
     
  2. Jacque

    Jacque Buyers Agent and Bookworm, Sydney Business Member

    Joined:
    18th Jun, 2015
    Posts:
    577
    Location:
    Sydney
  3. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,269
    Location:
    Adelaide, SA
    Hiya,

    Quite a few of mine I've bought with an existing tenant / PM in place. Sometimes the PM is the same as the selling agent which can help a little.

    Being on fixed lease matters naught for the purposes of taking them over.

    So essentially what you'll want to do is -
    - (If you're interstate) Give the sales agent written/email notice that it'll be the PM collecting keys on settlement (so that they can legally give them out).
    - Get management agreement in place with your chosen PM
    - Have PM collect documentation such as tenant ledger, ingoing inspection report, lease, etc
    - Have PM do a bond transfer so that it's registered against their agency so that they can disburse it at the end of the lease if need be.
     
  4. Rixter

    Rixter Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    572
    Location:
    Portfolio Perth Brisbane Sydney Melbourne
    I will keep the existing one for a trial period, then decide based on performance whether to extend their management agreement or transfer it over to another PM..
     
  5. nevernotspurs

    nevernotspurs Active Member

    Joined:
    13th Jul, 2015
    Posts:
    28
    Location:
    Perth
    I just bought a property with a tenant and lease in place where the manager is the same as the agent. The tenant is paying $20 per week over what was listed in a valuation from a property valuer. I have just renewed the lease for 6 months as a further trail period.
     
  6. Kirk Stafford

    Kirk Stafford Member

    Joined:
    23rd Jul, 2015
    Posts:
    8
    Location:
    Melbourne. Vic
    Be interested to know what your parameters for assessing their performance would be Rixter...
     
  7. Rixter

    Rixter Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    572
    Location:
    Portfolio Perth Brisbane Sydney Melbourne
    In no particular order Communication, Integrity, Knowledge, Decisiveness.
     
    Traveller99 likes this.
  8. Kirk Stafford

    Kirk Stafford Member

    Joined:
    23rd Jul, 2015
    Posts:
    8
    Location:
    Melbourne. Vic
    Thanks Rixter, always nice to get some reinforcement of basics for when I deliver training
     
  9. Rixter

    Rixter Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    572
    Location:
    Portfolio Perth Brisbane Sydney Melbourne
    Glad to help....tho I missed Analysis too
     
  10. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,269
    Location:
    Adelaide, SA
  11. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    613
    Location:
    Sydney
  12. Rixter

    Rixter Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    572
    Location:
    Portfolio Perth Brisbane Sydney Melbourne
    The parameters are performance based upon conduct/behavioural patterns over time in relation to their management duties - encompassing all internal and external stakeholders. Each parameter is measured in relation to a particular situation or task performed; what and how they said or did in response to that situation or task; and the outcome/result from their actions.
     
  13. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    6,269
    Location:
    Adelaide, SA
    Can you try again without copying and pasting from the dictionary? :p
     
  14. Rixter

    Rixter Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    572
    Location:
    Portfolio Perth Brisbane Sydney Melbourne
    Sorry thats 25 years of govt report writing....anyway you being a budding PM to be should be all over this kind of stuff. :p
     
  15. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,516
    Location:
    Sydney & Gold Coast