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logistics of changing a PM

Discussion in 'Property Management' started by Abooking, 7th Oct, 2015.

  1. Abooking

    Abooking Well-Known Member

    24th Jun, 2015
    It could be time for me to change the PM to another agency. I write to ask your opinion about the best way to go about this.

    The lease is due to expire next month on the 26th. The agency agreement states that I can terminate with 30 days notice. Should I simply give notice to terminate on the 26th of this month and then the new agent can sign up the tenants on a new fixed term lease. If the tenants dont want to stay then the new agent can obviously find me new ones.

    I think its too messy to sack them now with the current lease expiring and I should wait. Do you agree?

    Is it daft to sign a new agency agreement prior to terminating the current one. My intuition tells me that I should wait and serve notice and then arrange the new one with the new agent. Do you agree?

    Any comments are appreciated
  2. D.T.

    D.T. Adelaide Property Manager Business Member

    13th Jun, 2015
    Adelaide, SA
    Which state is the property in?

    Review your management agreement / authority. This should specify how long you're locked in for and/or what kinda notice you have to give. Note that in some states have different rules on this ;)

    Then there's really not much to it,
    • Find the property manager you prefer
    • Sign a management agreement with them, they'll then organise:
      • Notifying the other PM
      • Collecting lease, keys, tenant ledger, file notes, property condition report / inspection notes
      • Organise transfer of Bond
      • Introducing themselves to tenant and arranging new payment details for them
    DiligentPM likes this.
  3. Vultures

    Vultures Well-Known Member

    22nd Jun, 2015
    I've signed up with a new agent before and let them take care of the rest. They will inform your current PM that they're taking over and will go and pick up the keys and paperwork. Of course you can do your current PM the courtesy of giving them notice yourself if you wish.

    As far as the lease, if it expires next month your PM should have already done something about renewing it. Find out where this is at, whether the tenant is planning to stay. If not, the sooner you change the sooner your new PM can start looking for another tenant.
  4. Nick Valsamis

    Nick Valsamis Real Estate Professional

    20th Jun, 2015
    There are some factors to consider. But if you are sure about changing agents, then it's almost always best to do it sooner rather than later.

    The main thing to consider is if the tenant does decide to vacate, are you confident to let the current agent advertise and source a new tenant prior to them vacating?
    Otherwise if not then it is best to give notice now, that way the new agent will be able to take over about 3 weeks before the lease expires and can prepare to advertise for a new tenant in this case.

    It will not make any difference whether you sign a new agreement prior to terminating the current one, but for good record keeping you would want to have an accurate commencement date on the new agreement so you know the exact date that you changed to the new agent.
  5. SeafordSunshine

    SeafordSunshine Well-Known Member

    24th Jun, 2015
    I would be looking at it from slightly different angle.
    Have the tenants been ok?
    Do you want them to stay?
    Is the rent 'market rent?
    If the tenants vacate at the end of their lease, will the outgoing agents do a good job .. final inspection .. wear and tear.. repairs?
    Have you found a new PM , what is better about them than the previous?
    I hope this helps!