How could I switch agent management to self management?

Hi all,

Not sure if anyone has posted similar threads in the past so I would start a new one.

I have a unit which is in an eastern suburb of Melbourne and currently managed by a local real estate agent. At the moment, I am looking to terminate the agreement with the agent and start to manage the property myself.

The reason is that the agent has been hopeless (I don't want to spend half an hour writing about how hopeless the PM is so I would simply skip this part...).

The current tenants have been in the unit for over 6 months. They keep the property clean and tidy and pay rents on time. Due to the bad communication between the tenants and the PM, they are happy for me to manage it without an agent, as at the end of the day, they just need somone who answers their call or replies emails if there is any maintenance issue.

Question -

How can I terminate the agreement with the PM and start self management? How did you cope with the rent payment, collecting cash monthly and asking the tenants to set up automatic online bank transfer?

Any comment would be highly appreciated!

Best regards,
CragD

 

The process should be in the management agreement you signed. You might not be able to terminate it without significant penalties either.

By the way, you should be wary of trying to self manage just because things are going well.

One question I always put to people considering self management - do you know how to terminate a tenancy if things were to go bad? If the answer is no, then you're not ready...

 

Appreciate the swift response! guess I'm not ready for self management as my answer to that question is no...

I'm not trying to make the switch because I have good tenants. At the moment, both myself and the tenants are upset by the service provided by the PM and I don't see any value of the management fees that I pay each month.

Having said that, I agree with your point - if anything goes wrong, PM is the person that I can rely on. Maybe the best option for me is switching to a good PM?

 

@Lil Skater is a good Pm in your area!

 

Thanks Dave, good to hear from you again...

I think I still remember these guys as we both attended the seminar a few years ago. Will give them a call soon.

 

+1 for the above too

PM is one of those things that look easy when everything is going well,

its only when things go pear shaped then the true strength of the PM/Landlord shows

Prop management is one of these things, everyone reckons it's easy

 

Based on the questions being asked, I'd suggest you're courting trouble by trying to self manage.

I use the following PM in Melbourne's East and she's is brilliant:

Kym Ryan
Ryan Property Specialists
03 9899 6099

 

Sorry but the fact that you have to ask this very basic fundamental question made me wonder whether you should really embrace yourself with all matters regarding Property Management before you contemplate self-manage......

 

Yep, i reckon its arrogant to think you can do what professional does and come on here to ask about it, to Even go down that path

Different if it was short term letting or student accommodation or if no agent is willing to accept it

 

Hi @CraigD quite a few people have said the same thing, if you're asking these questions you shouldn't self manage. You might feel that we're beating you up a little.

I've tried to self manage. I read the books about how to do it, I wasn't a complete newbie (although not really experienced) to property investing at the time. I thought it can't be that difficult.

It was a big mistake. My first tenant took advantage of me from the very first day. Probably the best thing I did was pay a property manager to get rid of her but over 10 weeks I didn't even get enough out of her for the clean up bill, never mind the rent that was never paid.

20 years later I've known quite a few PMs and I've seen a lot of what goes on in their offices. It's not an easy job, it's not easy money. Good PMs have solid processes for everything they do. They know the laws inside out. They've got experience which counts for a lot. I've also observed that very few people who self manage have an easy time of it and do it well. They also seem to attract a lot more 'bad tenants'.

There's plenty of PMs who only do an average job but there's also a lot that are very good at it. As a general rule, try to work with someone from a smaller office, ideally the business owner or someone with a financial interest in the business. From there perspective a successful business means quality properties, landlords and tenants. They'll work hard to make sure that happens and that benefits you.

 

First of all, good on you for 1) asking the question and showing a level concern for not only the service provided to you but also the service provided to your tenant. And 2) credit for recognising you might not be ready at this stage. Having said that, don't be completely discouraged if it is something you are interested in. There is an almost limitless amount of information to start educating yourself with. Even if you decide it is not for you, it will still be valuable in helping you "manage the manager".

- Luke

 

Hes not in the Biz to do that?

 

I say give it a go...what's the worst that can happen, really!
You'll have a very fast learning curve for the first couple of weeks then it will get really easy. It might be easy for weeks/months/years who knows but then something will go wrong which will be too much to deal with and you'll hand it back to a property manager and understand what they do.

 

Really !!!!! ...

 

Hey Guys, I use Instarent to self manage my property.
Its a licensed property management platform, good service and all property management functions are built in.
Try if you like ; www.instarent.com.au , they also have a app that I use.
Hope this helps

 

Does it help a landlord terminate a tenancy correctly?

 

Yes you can terminate it, as long as you made the tenancy agreement with them.

 

Explain to me how the platform helps a landlord terminate a tenancy agreement correctly, because your post otherwise sounds suspiciously like advertising spam.

 

Terminating a tenancy agreement is not something you need a property manager or agent for. The app just points you in the direction of how to do it yourself.

The information is freely available: https://files.tenants.org.au/factsheets/fs10.pdf

Sorry to sound like advertising spam. I just hate seeing landlords being scared into using agents and property managers.