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Terminating a management agreement

Discussion in 'Property Management' started by Hobieyak, 20th Jun, 2015.

  1. Hobieyak

    Hobieyak Member

    Joined:
    18th Jun, 2015
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    Location:
    Sydney
    Hi All,
    My tenant has given notice and will vacate in a few weeks. I'm thinking of selling the property, but if that doesn't work out I'll put it back on the rental market and will canvas some agents recommended on this forum for a new PM agreement.
    I've emailed the current agent stating that I'm giving the required 30 days notice of terminating the current rental agreement - does anyone know if this is sufficient or do I need to follow up with a registered letter ?
    Thanks
     
  2. Pistonbroke

    Pistonbroke Well-Known Member

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    Location:
    Guangzhou
    Depends on what it says in the management agreement. Email or fax or letter usually the last two. They won't get upset about it.
     
    Scott No Mates likes this.
  3. Coota9

    Coota9 Well-Known Member Premium Member

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    Melbourne
    What state are you talking about?
     
    Last edited: 20th Jun, 2015
  4. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    An email should be fine, but a copy in the snail mail would not hurt. Bear in mind, the PM only gets paid a % of the rent collected, so if there's no rent coming in, there's no cost to you for the last remaining days of a 30 day termination period if there's no tenant. The PM should be advised not to be advertising or looking out for a replacement tenant though.
     
  5. Stephen Scutts

    Stephen Scutts New Member

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    21st Jun, 2015
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    Location:
    Sydney
    Which State are you in? If in NSW most agreements are 30 days, it will be in your MMA, but like previously mentioned if there is no tenant in situ its academic. I would however ensure the current managing agent does a through vacate inspection of the property before releasing the tenant bond, best you attend if you have time. Yes, I ran a PM company for many years... Good luck, its agreat time to sell. Stephen.
     
  6. Hobieyak

    Hobieyak Member

    Joined:
    18th Jun, 2015
    Posts:
    6
    Location:
    Sydney
    Thanks for all the advice / responses.
    I should have mentioned it's NSW.
    I have sent the email and got an answer back so I'm reasonably happy that I've got myself covered.
    The current tenant will be leaving before the expiration of the 30 days and I have already given the current PM instruction that it is not for re-rent.
    The property is held within my self managed super fund so I'll need to make a decision on switching the fund to pension phase to avoid capital gains tax or paying the 10% (less 1/3) and holding the funds for a possible further superannuation purchase.