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Buying IP With PM Already In-Place

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

  1. Michael.Knight

    Michael.Knight Member

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    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

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  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    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

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    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

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    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

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    Be interested to know what your parameters for assessing their performance would be Rixter...
     
  7. Rixter

    Rixter Well-Known Member

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    In no particular order Communication, Integrity, Knowledge, Decisiveness.
     
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  8. Kirk Stafford

    Kirk Stafford Member

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    Thanks Rixter, always nice to get some reinforcement of basics for when I deliver training
     
  9. Rixter

    Rixter Well-Known Member

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    Glad to help....tho I missed Analysis too
     
  10. D.T.

    D.T. Adelaide Property Manager Business Member

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    how do you measure these?
     
  11. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    Most of mine already had tenants I've only been shafted once with the selling agency stealing the tenant to lease to one of their properties the day after settlement he issued his notice to vacate.
     
  12. Rixter

    Rixter Well-Known Member

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    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

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    Can you try again without copying and pasting from the dictionary? :p
     
  14. Rixter

    Rixter Well-Known Member

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    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

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    I would always change unless the current PM is the best in the area.