WA New Management Authority

Discussion in 'Property Management' started by venno, 29th Apr, 2020.

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  1. venno

    venno Member

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    I have a rental that is half way thru a 12mth lease, the agent has been managing the property for the last yrs so I would assume my leasing term has well and truly ended with them.

    I received an email asking me to complete an updated management authority for the property, they also drew my attention to the fact that most of their charges were increasing. They also stated that their auditor required the update and that they needed it ASAP.

    Ok, I started reading thru and wasn't overly wrapped with all the fee increases, but what was really interesting was the lock in term of 2 years for exclusive management rights.

    Is this 'update' just a gambit to lock me in with them again?
     
  2. ChrisDim

    ChrisDim Well-Known Member

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    gambit to lock you in with them again :mad:

    of course an auditor would some day need proof of new fees hence why they want you to sign a new agreement.... I don't have a problem with them upping their fees. If that is what they think is appropriate for their services, then so be it. You either agree because you are happy or you take your business elsewhere.

    NOW PLEASE TELL ME IT DOESN'T SAY NOTICE PERIOD OF 2 YEARS??? :mad::mad::mad:
     
  3. venno

    venno Member

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    Wow, passionate reply, not an agent are you?

    The 2 yrs refers to the elapsed time between the commencement date of the management authority and the end date. When taken into context after reading the appendix which details when an in force authority can be cancelled and by which parties to the agreement, it effectively locks the lessor to the agent. It takes proven malfeasance/negligence on the part of the agent for the lessor to be able to unilaterally terminate the lease in this scenario.

    The agent can agree to release the lessor from the agreement given 28 days written notice, but they don't have to.
     
  4. thatbum

    thatbum Well-Known Member

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    I don't get why it matters? You either are happy with it or not?
     
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  5. chooke

    chooke Well-Known Member

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    Why would you sign up to such onerous one-sided conditions? The duration of the agreement doesn't matter, what does is the release notice period. Most are 30 days for either the agent or the lessor to give written notice and be released from the agreement.

    I've only once come across a management authority which did not have the 30 days notice for the lessor. And that agreement would have required compensation (for what?) to the agent if the lessor wanted out. I told them to stick it, I mean what individual capital costs or investments are made by the agent for your business?
     
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  6. Skinman

    Skinman Well-Known Member

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    Had the same thing recently with same stupid reasons “for audit purpose” trying to sneakly lock me into 3 years...may well be the same agent.

    I told them I was happy with the service at the moment but wasn’t willing to grant 3 years of exclusivity. Agreed on 12 months in end which I’m still not totally happy with...however given they have been the best of a bad bunch I’ve experienced in WA I went with it.

    Dealing with PMs in WA compared to all other states is a like chalk and cheese in my experience.
     
  7. Skinman

    Skinman Well-Known Member

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    Cause it’s a fight to get out if things change and you become unhappy and still have 2.5 years left rather than 30 days notice.
     
  8. thatbum

    thatbum Well-Known Member

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    Then don't sign it. That's what I did x2.
     
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  9. Skinman

    Skinman Well-Known Member

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    Is the same agent / agents managing your properties? Or did you have to move on.
     
  10. thatbum

    thatbum Well-Known Member

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    Same agent. I've actually done this more than twice before.

    No agency terminated the agreement. Last contract terms I saw pretty much had a "periodic" term to the agreement if it wasn't renewed, which suited me.
     
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  11. chooke

    chooke Well-Known Member

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    Alternatively, add a clause to the agreement that you as lessor can terminate with 30 days notice without penalty. If they don't accept it go elsewhere as most agency agreements I've come across in Perth provide a 30 days notice get out for either party.
     
  12. venno

    venno Member

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    Cheers for the replies and info.

    I have 2 IP's managed by same agency but seems only one is the subject of this new authority. The form looks like a standard REIWA one with a few things lined out and additions; looks like the nasty clause in particular has been added in (albeit very professionally looking) by the agency as I can't find it on a (really) old one.

    I did see on the old form a mutual get out clause with 28 days written notice (no questions asked) by either party once an initial term has been served. I have cancelled their clause and inserted this one. Have left the authority period as is, new clause should cover me as they have managed this IP for 6 yrs (other one for 7).

    Not happy with the increases, I calc that with one tenant turnover a year the agent takes 17.5% of gross rent. Someone further up in this thread mentioned their agent being the least worst of a bad bunch, this is how I feel about my experiences in WA and the current agency. Out of work due to redundancy but luckily both tenants still paying normal rent, don't need the hassle/peril of changing at the moment.