Hey Guys Might sound like a dumb question but you dont learn if you dont ask lol. Im currently in the process of purchasing my 2nd property in Qld. The house is tenanted already and managed by another agency. So dumb question. Who keeps it how it is and who merges the 2 properties with 1 manager? Are tenants worried if you change property managers? Any advice appreciated Ryan
Well, you are the new property owner who don't have a contract with previous owner's property manager. I think you can do whatever you want, as long as you don't sign a contract with that property manager. You can talk to your property manager who will be able to sort it out for you.
@Ryno You are required to decide firstly whether you appoint a manager and secondly who that manage will be if you decide not to self-manage. If you decide to take on a manager, then you will be required to sign a management agreement with the manager of your choice. You may decide to have different managers if they are in different areas eg Goldy vs Sunshine Coast or even different suburbs. If the property changes owners, you/your agent notifies the tenant of the new management details including banking details. The first month may be messy if they haven't received adequate notice of the change to create new instructions for the tenant's bank.
If I had a good manager already that is in the same sort of area, I would probably give it to them - but not always, but would see how they have been doing things anyway most likely. There is no rule, it is whatever you feel is best really. Usually the tenant is not part of the consideration.
Bout 20km between the 2 properties. My pm is ok no complaints. Touch wood. i suppose what im asking is it cheaper/better to have multiple properties with one pm or it really doesn't matter
20km is quite a hike out of your PM's way. Your PM agency might have a big coverage area with different staff allocated to the various pockets. Exceptions to the rule are a PM taking on property that is near where they live or ob the way there... so they can do inspections on their way to/from work.
The current agent doesn’t have a management agreement with you, but they are still the current managers, and buyers will often stay on with an agency- though many of them do it out of convenience rather than having done their due diligence first, you should always spend a bit of time making sure you’re confident with your choice. There should be minimal effect to the tenant, and the new PM should be able to make the changeover very easy for them. Some agents will do a better deal for multiple properties, but the real benefit for most Landlords is having a single point of contact. As far as distance, this one is a bit subjective. For example- when I worked for a big agency in Ipswich, we were fiercely local and didn't do anything outside of Ipswich, which likely means 20km is out of area. These days I cover quite a wide area, so 20km is a walk in the park (assuming it's still within area-of-operation). Do you have an idea of how your current agency will take on this new property- is it in an area they know and operate in?
The management agreement the current PM has is with the owner, NOT with the property. Feel free to find and choose PM of your choice. Cant speak for Brisbane traffic but that distance would be no issue at all here in Adelaide. Having properties under one umbrella can be very advantageous
20km is too far. I would find a specialist in the area that can look after your property. On the flip side, it is possible to negotiate a better deal when you bring multiple properties onto an agency's rent-roll. However, I feel like the the price difference won't be worth it in this case
Tenant's don't care. And if it so happens that the current property manager is not doing a good job, they will even be happier with the change. No issue keeping however many properties you want with one property manager if you are happy with them and the other good thing of course, is that you can and should negotiate a better fee schedule with every new property you give them.
Hey Aaron I havnt purchased yet. What I was looking at fell through. What I think I will do is if it's tenanted I will stick with the current property manager until there is a vacancy.
Hi Ryan, Sounds like a plan. When working through the purchase of the property the agency should be happy to arrange for a meeting/phone call from the Property Manager to discuss their service offering. You would think (and hope) that they would be keen to do this. You should be able to then take this information into consideration if you wanted to work through a small review of a few local service providers. Good luck! I hope it goes well.
