Changing PM

I am really coming to the end of my patience with our current PM co. Is it easy enough to change?
I assume I need to check my contract but do those roll when tenancy is renewed or is the contract from the original date of appointment?
In fact from the last property I purchased I never signed a contract with the PM they just took over managing that one as well.

 

You would have a management agreement in place.

Im not sure about how it works exactly. someone like @D.T. would be a full bottle on it.

Im interested to know. Im intending on changing mine out in July this year when my agreement expires, albiet this is in the middle of the lease term(s).

Blacky

 

I think it's pretty easy.

I can't speak for all states - but in the ACT you sign a termination of management letter (the incoming PM will provide a template) and a new agency agreement. The new PM will do the rest.

Cheers

Jamie

 

It's easy! tell the new PM you want to use them and they'll make sure it's easy for you so they get the business they'll likely have template for you to send the exPM

Basically email the current agency (check contract deets) saying you want end the agreement then advise new PM you've done that. They will have their receptionists meet for the break up talk and hand over the manila folder

 

I was gonna find info on this today too.
My brother has been annoyed at driving past his IP and seeing it looking less and less looked after, and hearing nothing from the PM.
I attended the property inspection with the PM today on my brothers behalf, and was shocked at how hopeless the PM was.
Small examples:
- Massive pushover when ANY request is made, even stupid ones (one tap is 'hard to turn off'. PM tested it (she's tiny) and had no problem, yet will still arrange a plumber. It works properly just like any other tap)
- The tenant has removed the fire alarm (PM said it wasn't required LOL)
- There's been a **** tonne of rain in Sydney so naturally a few more critters running around - wants to arrange a full pest control at my brothers expense even though they move out in 3months. I questioned PM on this (after telling tenant it will be arranged at my brother's cost), and she backtracked and said it was actually up to the tenant to do it- why won't she just tell that to the Tennant?
The PM seems to treat the tenant better than my brother who pays for her services.
Ridiculous

 

Once the fixed term condition is met (it varies between agencies so check the contract) you need to give them the required time ie 30 days, 60 days etc...

You as an investor you should not have to do this however, find a new PM you are happy with and get them to make the transfer.

They know how to terminate managent agreements legally with other agents, and make the transfer so that it's smooth for the tenant. I never allow my clients to get involved in the transfer process, we arrange it all between agencies. Most agents know each other and it's a professional arrangement between offices with (usually) no dramas.

Agent to agent transfer can also result in a negotiation of early release between offices. I've negotiated last week to pick up a new file that afternoon, negotiated out of the 60 day notice and arranged pick up in 2 hours of new client giving us authority to act as agent.

It's easy enough but if you get it wrong they don't legally have to give you the files. I would recommend allowing another agent to do it.

 

If your in Vic there is no fixed term once the property is tenanted only for leasing, you can walk away when you like
Engage a new PM and they will handle the file transfer from the current agent, normally the new agent will give the current agent 48 hours to arrange for the file to be collected

 

Dammit I screwed up and did not check this.
I started with a new agent and just now went to check the contract for how much notice I need to give if it does not work out and it is 90 days.

This is Sydney by the way.


Questions:

1. What is the standard for this?

2. When I was switching to him he said I could end the previous REA with 30 days notice and he will deal with the previous agent for everything else, (or no notice if not tenanted). How did he come up with if he did not ever see the contract I had with the previous REA?

3. Am I able to change this at some point?
Eg after 3 months can I say something like:

I am happy with your service and no plan to leave, but in the event I am unhappy I would not like to be forced into 3 more months. I would like to change the contract to 30 days notice.
And if they say no I can just give them the 90 days notice and leave.

 

The new agent had 90 days notice?

Yes you can try and negotiate another term.

 

The path of least resistance.....everyone in the chain needs to know your no doormat.

 

Re notice, I never do 90, 30 is what i normally put, but am thinking about changing that on new contracts to 14 or 7 days. 24 hrs would be even better, but may not be enough time to do proper transition for many PMs

Glad the SA ones may let go early.

 

Yeah I will need to do that.
I am so lucky to have found PC. Otherwise I never would have found until it was too late.

Yeah I think 14 days is better than 30.

Possibly even 7 considering a week of screw-ups can be a week of rent which is not a small amount of money to basically end up in the bin, but I wonder what the reactions would be to this. Or even to 14 actually.

I don't think I will ask for this when renegotiating - it will look too much like I am trying to leave them.
But yes in future I think I will try 14 days. Good idea.
Shouldn't really matter to them - only really would matter if they are not doing their job.

 

I get them saying, you can leave the next day if you ask, while trying to keep agreement at 60, I do not care, I cross it out and put down what I feel is best, same for every other area.

It can get awkward with some, but frankly, I do not care, it is business, not personal.

In saying that it is a working relationship, so am not at all defensive or personal about it.

I just had one refuse to let go, they told me in an upset voice 60 days, I told them I would check the paperwork but I do not sign 60 days, I told the principal straight on next call, nothing personal, was ok but still held for the agreed time frame, it is business for them too. Of course there was a little more too it, but not emotional or getting dragged into conflict.

So do what you feel comfotable with or is agreeable to both.

 

I like this thread, I'm going through the same thoughts at the moment.

I'm actually at a bad timing to change pms. Just want to get your thoughts on this.

I'm at the end of a lease at the moment, I have three weeks before the existing tenant moves out. I need to give 30 days of notice to the agent.

Should I change agents now or wait till the new tenant moves in? Bear in mind I also need a new tenant into the property after the existing moves out during this switchover period.

I'm thinking probably best to wait until the new tenant moves in?

 

I'd wait until the new tenant has moved in, if the current PM is at least good at putting in reasonable tenants.

 

I always ask for 30 days. I also think the more properties you have the more the agents will bend over.

 

Recently changed agents. Now have new tenant. Everything going fine now.
However, I noticed after I signed that it says 90 days notice required to change agents. I am going to get them to change it.

Was initially going to change to 30 days, but my concern is if they turn out to be as incompetent as the previous agent, I want to be able to leave very quickly to avoid their incompetence costing me more money. I really would like 7 days notice. I would even be happy to pay them out for 30 days because $100 is inconsequential compared to the cost of a month of potential mismanagement. It should not matter because if they do their job, I will not leave.


Currently this is the wording

This Agreement commences on _________________________

This Agreement may be terminated by either party giving not less than 90 days written notice of termination but without prejudice to either parties rights accrued or obligations incurred prior to the effective termination.​

Couple of questions:

1. Should I just change the 90 to 7?
2. Should I specify no notice is required if the property is vacant ?

Or if anyone has a suggestion for new wording, or anything else, that would be great too.

​

 

is it QLD ? they use a form for both sales and management.... no need for more than 30 days for management IMO.

 

Does the below text seem ok for changing the current 90 day notice of termination to 14 days? Or should I change some of the wording for politeness/clarity?


Hi xxxxx,

As you know, I was burnt by my experience with my last agent, and it cost me thousands of dollars.
As a precaution, I would like to change our contract to a 14 day notice of termination period instead of the current 90 days.

This is in no part due to any dissatisfaction with you and xxxxx. I have been very happy with both of you and I have no plans to leave.

I am happy to make this change 3 months from now if you prefer - as I said, I have no plans to actually leave - it is just for my own assurance.

Regards,

 

Anthony, I was recently in the same situation. 90 days is a hell of a long time to put up with incompetence. Especially the day you give notice is the day it starts to get worst. I don't know how they can get away with setting it to 90 days to start with. I sympathise your situation.

During the handovers, I can also see the old agent bad mouthing you to the new agent as the relationship has soured. PMs is this something that occurs quite common - the bad mouthing?