Mistakes in tenancy agreement signed by PM

Hi

I have instructed my PM to sign tenancy contract for 6 month rents so that I can increase rent after 6 month (as I ask for very low rent now). However, the PM has signed the contract on behalf myself for 1.5 years. The PM has forwarded me the contract after he signed it.

So, the contract starts 29/12/2016 and ends 26/7/2018 instead of ending 26/7/2017.

What can I do now? Can I ask PM to fix the contact?

 

Most PMs are terrible listeners

On the bright side:
You can still do rental increases during that. I'd be grateful you have a long term tenant. Lowers risk of vacancy.

 

Thanks DT.
Very appreciate it.

I guess that PM has made the mistake. They signed the contract at the end of 2016 but they thought they are in the year of 2017.

Regards

 

Couldn't the contract be amended by mutual agreement? The tenant might not want a 1.5 year lease.
I once had a tenant who signed a 12 month lease by mistake, they only wanted 6 months, I agreed with their request and it was amended. This was in Qld.

 

Thanks HUGH72.
My IP is QLD, too.

 

If there are no written increases and the contract has been executed and funds receipted then it's a very big mistake. You cannot raise the rent during a fixed term contract unless it is specifically stated. Your PM has potentially cost you a lot of money if you were planning to raise the rent after 6 months.

 

I think you need to raise the issue with the property manager and let them know that you are really upset about this as they have potentially cost you a lot of money as you were planning to raise the rent by $X in 6 months time. I would then push for them to pay you the difference, or drop their management fees for a while to compensate you. Alternatively, they might be able to renegotiate the lease with the tenants (though I'd rather not use this option as you might upset the tenants). It really is not good enough.

 

What Andrew said (@Andrew Hancock)

On that note, this is the second thread I've seen from you today asking questions about your PM. If this is the same company, I'd be looking at changing quick smart - sound kind of incompetent if you ask me. (Sorry, I'm an exceptionally blunt person at times and doing your job right is not really that hard!!)

 

Ah its in QLD... No rent rises during leases there sorry. Could potentially amend it by mutual consent of everyone involved.

 

So, who will give me compensation because of PM's mistake?

 

No one, unless you gave the instructions to the PM in writing ...

 

You're expected to take reasonable steps to fix the issue first. If its a genuine mistake, then it should be easy to fix.

 

how much lower is the rent compared to what you think it should be? And how much were you thinking to raise it by after 6 months? I'm sure if you raise the issue with the PM they will accept they made a mistake and try to fix things. As somebody else said, perhaps the tenant and the PM don't even realise this has happened.

If the difference in cash isn't big and the place is a little difficult to rent out, I'd be happy to get a 1.5 year lease. I'd love to lock in my tenants for 1.5 years! Even just one week on the market could mean 300-600 dollars lost.

 

Have you spoken to the PM yet and had them discuss with the tenants? They might be more than happy to change it.

 

Much cheaper outcome than the loss of rent, advertising and letting fees.

 

Does your PM have an Accountability Guarantee?

It really depends what the tenant wants. If they are happy to change it, then you might get lucky. At the end of the day though, it's a contract and no different to a property contract. Once terms are agreed upon and executed by both parties there is nothing you can do other than by mutual consent. If the tenant simply says "Sorry, lease is signed and we like it" then you're stuck with it and now the professionalism of your PM will come into play as to how they handle it with regard to compensation.

All the best.

 

This bit has been the problem all along, @melbourne171 needs to find a new one.

 

Classical case of you get what you pay for.

Opt for a commodore over a BMW then complain the commodore doesn't perform like the BMW would.

 

Do we know that @melbourne171 hired a "cheap" PM? With PMs I don't agree "you get what you pay for" applies. My most expensive PM I ever hired was the worst I ever had. The cheapest has been the best so far. He actually managed to fill out all paperwork correctly. Amazing!

The most expensive PM I ever hired couldn't even unlock a door when they were holding the key to the door in their hand! They called a locksmith and the locksmith had to talk them through, over the phone, how to unlock a door. Hilarious!

 

PM charges fixed management fee. However, as the rent is low, his rate becomes more than 10%. Worst