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Help)) Poor management, can I just send a termination letter?

Discussion in 'Property Management' started by Lydia, 1st Apr, 2016.

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  1. Lydia

    Lydia New Member

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    Hi I really need someone's legal advise.

    IP is in Penrith, NSW area 3beds house and tenants moved out a week ago.
    There were 4 Saturdays since the tenants gave notice.

    1. Open home - no one interested
    2. No open home due to short staff : there is only one property manager at the moment. (normally 3)
    3. Easter Holiday
    4. No open home due to short staff : That only manager's time is all booked with other private appointment and unfortunately no one booked private appointment for my IP.

    So, 2 Saturdays were wasted in my point of view and this happened exactly same about a year ago. Manager resigned and changed so many times and didn't do scheduled open home because of short staff. They never called me first about not having open home, I always had to chase them.
    Onwer is away 2 more weeks from now and he is the one who hires staff.

    I found a great new agent and she said I can just sent a termination letter and won't need to give notice as it is poor management.
    The 12 month fixed term has ended last year.

    'This agreement shall commence on the 25/11/14 and may be terminated by either party giving not less than 60days written notice of termination but without prejudice to any accrued rights of incurred obligations.'
    This part is bit tricky for me. Could I just send immediate terminating letter and move on?
     
  2. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Sounds like it - but 60 days notice unless mutual agreement.

    What does your agreement say about 'breach'?
     
  3. D.T.

    D.T. Adelaide Property Manager Business Member

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    That does sound like pretty poor service, I know I was out doing stuff for clients over Easter. Them being short staffed isn't your problem, it's theirs.

    So yes, you can send a letter to terminate. If there's mutual agreement you can go straight away. Legally / technically, they can hold you to your 60 days notice or alternatively just pay them 60 days worth of management fees to go immediately if you wish.
     
  4. Lydia

    Lydia New Member

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    I can not fine about 'breach' in this REINSW exclusive management agency agreement residential (short version)
     
  5. Lydia

    Lydia New Member

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    Thanks D.T.
    I should move on!
    I had no idea that commission will be only 60days management fee which is less than $200.
    So worth it as I don't have to deal with them anymore.
     
  6. Nick Valsamis

    Nick Valsamis Well-Known Member

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    As the tenants have moved out and there is no effective lease in place, you can terminate the agreement with them without any notice. This is normal procedure in NSW.
     
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  7. D.T.

    D.T. Adelaide Property Manager Business Member

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    Ah, that's pretty nifty to know.

    Isn't like that here, but the standard REISA management agreement (used by those of us who are members) does specify an initial marketing period for which the rules to give notice are a little different to normal. Doesn't apply again afterward though.
     
  8. Xenia

    Xenia Adelaide Property Manager Business Member

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    Lydia
    they are not mitigating your losses.
    yes they should have done an open every Saturday or twice a week if needed.
    I managed to fill 18 properties in March and held open inspections on good friday and over the easter break to make sure they are given the best chance.

    My work ethic is that you rest when everything is under control, not because someone invented a public holiday.

    Can I suggest that you move to an agency where an owner is involved in property management.
    If they care about their business they will do what it takes to get it rented. Vacant properties are a liability to the owner and the property management business - it takes an owner to see it this way.

    The worst thing you could do is have your property managed my someone with a 9 - 5 mindset who hates their job and only working because they need the money. This attitude will show in the results you get.
     
  9. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Didn't know that it was different in the marketing period for SA.

    I've seen other agents in Sydney tell their landlord that they still need to give notice when the property is vacant, just to hold onto managements longer and try to get it leased.

    Unfortunately for property investors, the 9-5 property manager is very common and not many know what a difference it can make. I actually did an open house last Saturday while everyone else was closed and I got a new tenant from that inspection.
     
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  10. Xenia

    Xenia Adelaide Property Manager Business Member

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    Hi Nick
    do you own your own company?
    do you do property management or sales?
     
  11. Nick Valsamis

    Nick Valsamis Well-Known Member

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    Yes own company and I do both property management and sales.
     
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  12. Xenia

    Xenia Adelaide Property Manager Business Member

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    @Lydia - maybe give Nick above a call, he may be able to help. :)
     
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  13. Honeydew

    Honeydew Well-Known Member

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    I have recently been in a similar situation to you and Nick has been of great help. Would recommend you give him a call.

     
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