It is ok for us to lease my property to agent’s sister?

Discussion in 'Property Management' started by cciecl, 2nd Nov, 2018.

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  1. wylie

    wylie Moderator Staff Member

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    I wasn't aiming my comments at any particular comment, but generally. Didn't mean to offend anyone.

    And if the agent does indeed have a great family member who is trying to find a rental via her PM sister, then that is why the PM should be prepared to pass the management to any other agent of the owner's choice and let her sister pass all tests.

    I'm not suggesting at all that the sister PM keep the management. That would be a conflict of interest and could lead to big problems if she is trying to find an "easy" rental for her sister who may not pass the normal tests.
     
    wylie, 4th Nov, 2018
    #21
    kierank likes this.
  2. Tom Rivera

    Tom Rivera Property Manager Business Member

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    I would only consider this relationship if you have a very strong and transparent relationship with your Property Manager. I don't think its necessarily a deal breaker, but you really need to have a lot of trust that the potential conflict of interest wont affect your investment.

    How communicative is the agent, and how involved are you as a Landlord? Do they send you full application summaries, do you keep a close eye on your statements, attend routine inspections, etc?
     
    Tom Rivera, 4th Nov, 2018
    #22
  3. skater

    skater Well-Known Member

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    It's cool! I wasn't offended at all, just stating why I would not accept it.:D
     
    skater, 4th Nov, 2018
    #23
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Do you mean property manager or real estate agent?

    If it's the real estate agent who you bought it off then there is less issue and less potential conflict of interest.

    If it's the PM's sister then I would consider it subject to the normal scrutineering and that the Licensee puts in writing that they will be responsible for ensuring all due processes are followed and that their duty of care to you is carried out to the letter, I would also put maintenance pre-authorised allowance down to $0. If I thought that would cover my risk appetite then I might say yes.
     
    Westminster, 4th Nov, 2018
    #24
  5. Indifference

    Indifference Well-Known Member

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    Legally I believe it's OK with full disclosure ie. Including full application & screening. Not advice & you need to check this.

    However I agree with others that this is a Conflict of Interest. Why don't you ask your agent how they would deal with the conflict of interest if their sister's application was successful... ... if nothing else it would highlight to them your boundaries & you may learn something about your agent depending on their response.
     
    Indifference, 4th Nov, 2018
    #25
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