Rental Management QLD after Settlement

Hi all

My investment property will settle next week. I'm in Sydney and the property is in Brisbane.
3brm townhouse in Runcorn.

I got a call from the sales agent that the tenant want to move out but they have a contract till the end of October this year.

What is my option here? I haven't signed anything with the existing onsite manager who is managing the property.

Some experience advice would be appreciated.

Thanks

Rich

 

Hi Sheep,

The tenant is obligated to abide by the lease and as the new property owner so do you. So no change to the tenants obligations and likewise the property owners obligations don't change (you are simply the new owner). Please see your contract, it should state that the property is being sold with a tenant in place until a stipulated date.

As for your relationship with the property manager, I believe this does not transfer. I personally would aim for this process to be smooth especially if you're looking at an upcoming vacancy and stick with the agent (if suited) and reassess when it's time to look for a new tenant.

Why is the tenant looking to move? If an ok tenant would be nice to just roll on through don't you think? Keep that train rolling...

Hope that helps was somewhat unsure of what you're asking

 

It's good that the current PM is the OSM. I would suggest to appoint them ASAP. (I'm surprised they haven't approached you). Interview/Talk to them and gauge their strength and weakness so that you can keep a close eye initially. Pick their brains on issues and improvement opportunity, even strategy to retain Tenants.

The Sales Agent might offer free PM for you but from experience, OSM wins hands down, generally. Not sure why they didn't get the sale.

Agree with DB, current lease is valid even with change of Ownership. Fortunately you can retain the same PM- less hassle.

On another note, would humbly suggest you join the Committee. Plenty to keep yourself abreast with. You can spend as much or as little time as you like....

 

It is up to you to appoint a PM. And yes, the lease is valid regardless of which PM.

By all means consider the OSM, but be aware that these managers purchase the rights to manage the complex and do a RE course to quality them to manage rentals.

Their abilities vary wildly, and sometimes their focus seems to be on keeping tenants happy rather than absent owners. After all, they see the tenants every day.

We have had some great OSMs, but also one or two that were inexperienced and hopeless.
Marg

 

Thanks for the reply. We plan on using the current OSM. The current want to move out 21/7 stating the purchased a property to move into.

They would have to keep paying rent till we find a tenant? From what I have been hearing this OSM became close friend with the tenant. They put the ad up for rent last week without letting me know. Any fees associated with finding a new tenant should be on the current tenant?

Also what is a good management fee for Runcorn QLD area? The OSM haven't discussed this with me. We have signed any agreement.

Thanks
Rich.

 

Legally the PM doesn't have to contact you until you own the property (next week)?

If you intent to retain the PM, ask for the agreement to be sent to you. This will disclose all fees and charges, which are able to be negotiated if you are not happy with them.
Marg

 

Don't just go with the agent who sold it to you unless they're good - research first. We lost over a month of rent because the sales agent were completely incompetent (didn't advertise the property, I have a thread on it if you're interested).

 

Once you own it, you can say....yes, let the, go, or, no the lease stands along with all the regs, ATM your say means nothing, but I would indicate which one is a preference and if going is the preference, make sure you speak to solicitor and have it changed to vacant posession.

This has the potential to be very costly for you, find out exactly what the score is before settling or at least have a good chat with your solicitor.

 

Can anybody tell me what an appropriate management fee in Brisbane is?
The agreement has 8.8%.
And letting fee is 110% of first week.
How would I deal with this case when the tenant want to move out and they should be paying for all fees associated with finding a tenant? They still have a contract till October.

Thanks

Rich.

 

Hi Rich

Brisbane, Logan average management fees are 7-9%

The cost you have quoted are about right, you may find slightly lower than 8.8%, look over the contract and make sure there are no other charges such as administration fees, extra advertising fees, inspection fees, etc

As there is a lease in place the current tenants will be responsible for associated break lease costs and rent until a new suitable tenant is placed.

 

I think you have more pressing issues than PMs and PM fees, which seems to be the focus now.

Your either getting the place with a tenant, or vacant, I would clear that up now, because if they are going (how much of a heads up do you need ? They have megaphoned it too you - lucky you IMO), I would ask for vacant possession.