Termination of rental management

Hi friends at PC,

I am having a huge headache with my property management company at the moment. My QLD property has been setting vacant for the last 2 months without a single application. The property management team did a terrible job at marketing the property giving the prime location it is in. They have been lazy and inflexible with appointments. Their work hours are 10am -2 pm Weekdays only. They are very inexperienced with tools of trade such as domain.com.au and realestate.com.au. Basically they have doing a terrible job and I really need the property back ASAP to get on with my life.

When I told them I want to terminate their appointment, they said that on the contract has indicated that on PAMP Form 20a section 4.2 said "one party give the other party 90 days notice in writing" I can't afford to let them mark around with my investment. Is there anyway I can the legally terminate their hold on my IP. Any idea or suggestions would be greatly appreciated!

 

There should be a marketing period ie 6 weeks and after that you can terminate. The 90 days refers to a property that is leased after expiry of the fixed term contract

 

Perhaps source a new suitable PM, get them to check out your contact, see what step they can come up with to resolve, take on your business.

 

That is in SA, not Qld. There are no fixed term contracts in Qld. Your agreement has obviously been with them for a while as PAMD20a changed to Form 6s on December 1st, 2014 with a corresponding notice period of 30 days. Your PM is obliged to transition you onto this agreement meaning you only require 30 days' notice, however there are instances of some PMs playing hardball with this.

My advice would be to tell them you've sought advice from the OFT and you wish to provide 30 days' notice, as per a standard Form 6 (which you should now be on). The problem then lies in that if they are being that pedantic that they are fighting you on the 30 v 90, they will almost certainly drop the ball with respect to letting during the notice period and cost you further vacancy. The other option is to offer to pay out the notice period by mutual agreement, rather than serve it out (in management commissions) however you will be probably be liable for a letting fee too if they have put costs into marketing and letting already.

Changing PMs during a letting period is not ideal for many reasons but I agree that if it's been that long with poor marketing and lack of proactive showings, then it could cost you more anyway. We have always conducted private showings at all times, including after hours (with legal exclusions) and you should also have a minimum of a highlight listing on re.com.au plus professional photos. Be proactive with your rental reductions if necessary as the maths doesn't work holding out for a figure that the market isn't paying (I've written an article on our site on this if you'd like to read).

Good luck!

 

Andrew is there a specific marketing period in qld that is seperate to the 90 day termination?

 

Nope!

 

If it's inner Brisbane, major over-supply particularly if unit or townhouse.

I saw one offering 5 weeks free rent with 12 month lease. I've had one vacancy coming up to 4 weeks with 10% haircut.

 

thanks guys for the advice, what about if I take it back with the intention to live in it, would that be an issue? is there any laws that would make this an exception?

 

I dont get the mindset of an agent who wont let a disgruntled landlord terminate when its going to be tough for both parties, espeically with zero interest

but hey, im the wrong person to talk to about managing property agents!

 

Ask them what it will take to let you out early

 

Ivan...threaten them with negative publicity and go hard...take it to QLD body registering real estate agents. Also indicate to the agent that you will sue them for damages....

Next time allow 14-30 days notice period ...if they don't like it move on...

This is costing owners money. There needs to be more tightening in the regulation of property managers and an instant termination if they are not up to scratch.

Take this site for an example...there have been a slew of less than exemplary conduct (not you) by some of the Property Managers. I hear some of them do not even have a license to conduct their ply.

 

A property manager must hold a licence or work under someone who holds one AND themselves have a minimum of a certificate of registration.

 

Yep....your last point is interesting I did not you could do that...here are my concerns would you trust someone who does not have their own licence. It reflects a couple things:

1. Either to stupid or does not have the committment to get a license. This is one of the easiest things to get in most states

2. How do you pursue that person...if they stuff up...pursue the licensee....has this happen once....bit of a mess..

 

@sash - Not everyone who holds a certificate of rego wants to be a licensee (or to have the liabilities), holding a licence doesn't make a person more competent either especially when it comes to PM. There is very little time spent learning the specific skills of a pm within the cert IV/diploma ie licensing courses - the skills learnt are required for trust accounts, people skills, farming/business development skills etc which relate to both sales and rentals.

 

From my experience the 90 days is more bluff than real. What % can they charge on $0 rent per week? Worst case they take you to QCAT for loss of commission, more effort for them the you. Get another agent on now and have both market the property rather than terminate, whoever gets the tenant gets the management. You just need to make sure you do your own checks on an application to ensure a PM doesn't just put anyone in to win the business

 

Dear ICIC,
would you be able to find another agent who would manage the transfer for you?
Sometimes a pro active agent will do the transfer for you because they know will have your loyalty in the longer run.
Perhaps speak to some other agents?
I hope his helps

 

I've just terminated my PM in Edens Landing, Logan
I won't go into it here the problems, but my new Pm, (New Way pm) @Tanya1335 was able to get my file and keys within 24 hrs. I terminated today and file and keys handed over tomorrow.
In this case the property is vacant so I suppose its no loss to them.

 

Hi,
Recently had the same question come up.
Yes it is correct that the current property manager can ask for the time frame that is the legislation unfortunately but any agent/real estate would know "best practice" it would be to let the owner go if they aren't happy for any reason.
BUT because you're under the old form the 90 days still is in place, but you can however ask for the form to be updated to the new Form 6, which you only have to give 30 days notice.
It is disappointing to hear that your not happy and they should be making all efforts to make you happy.
Hope this helps!