When Property Management Changes Hands

Hi our property management have sold their rent roll to another agency.
We liked our PM and would stay with her if it was possible, but at this present time she is unsure of where or what she will be doing in the coming months other than taking a well earned break.
What are our rights with the new management if we decided to leave do we still have to give the normal amount of notice that we signed up for with our current management ?
We only found out end of last week and the change over happens this week.
Thanks for any advice

 

Have a look at your current agency agreement and review the notification date. If it is more than one month, then formally advise them in writing that you wish to terminate the existing agreement and have a new issued with the notification period reduced to one month.

Might be a good time to review the other terms to see if they are still competitive and you are happy with them.

This way, you can try out the new management and if unhappy, then issue the one months notice and move on.

 

Thanks Chilliblue yes our current agreement is 90 days, so it would be a great idea to have a whole new agreement drawn up for 1 month instead so that if we don't like them it makes it easier to move on.

 

Dear Jess,
The Agent has sold your goodwill, against your knowledge, I wonder if they have given out your personal details, banking details and address to people who you do not know ?
I don't know what the NSW Fair Trading equivalent is in Sunny beautiful QLD, but I would certainly be asking them what your rights are!!!
If you really wanted to use the 'new agent' Perhaps you should interview them?
I hope this helps,
Cheers

 

Seaford Sunshine, I know it sounds awful but the sale of a rent roll is extremely common practise and nothing to be concerned about from that point of view. It's a major aspect in the financial process for an agency as well, as the Rent Roll forms the majority of the business value.

JPS25, this can be a tumultuous process and there is every chance the new agency is not as effective as your old agency. Most Landlords will either;
1. Stay with the new Agency, barely even noticing the changeover.
2. Give the new Agency a chance and change if they're unhappy with the service.

Keep in mind that the new Agency will likely need some time to adjust to the influx of properties, similar to the period of disruption caused by a new Property Manager but arguably on a larger scale. Often an Agency is not properly prepared for sudden expansion, and it can be near impossible to do so effectively- as staff and managements come and go rapidly during that phase and the 'health' (how well it's been managed) of the new portfolio becomes apparent over the first few months.

It sounds like you're going to see how they go with it, and if you get lucky your current PM will stay! Just keep in mind if the manager does change, you might want to let small service errors (e.g. long wait time for call back, minor mistaken details, etc.) go while they settle in. Obviously if there are major issues change change change!

 

My partner and I have also experienced a change of PM from sale of rent roll - we re-evaluated the PM fees to ensure it was competitive (we have IPs outside of Brisbane as well hence rely on PMs to manage those IPs) and gave the new agency a four week opportunity to demonstrate commitment to good service - worked out ok

 

Whenever this has happened to me, I've always been a bit surprised that I don't hear anything from the new management. If I was the new management I'd be sending all my new customers some sort of 'welcoming' letter to get things off to a good start.

 

Thanks for everyone's helpful advise. The changeover happened late Wednesday, haven't heard anything from the new management as of yet. Our old manager is unsure of what she is doing after 11 years with the group she was with she is planning a holiday and then seeing what is out there. I was hoping she would have stayed on but I think she is going to be looking for something different to do. Hopefully we should hear soon from the new management if not I will contact them myself by phone to find out what their fee structure is etc. We will give them time to settle in and yes we normally would first interview a PM before going with them. Thanks again for all the above advise it is appreciated.

 

PM Tom why/when would an agency sell their rent roll? And if they only sell some, not all (ie still manage some) what are the criteria that they use to decide which one to sell and which one to keep?

 

If the agency sells its rent roll, then you need to sign a new management agreement either with the new agent or with an agency of your choice provided that it is a new entity which bought the rent roll eg Yellow & Black were the old managers now it is Green and Pink - Green and Pink have not been engaged by you as your agent and cannot act on your behalf, expect a new management agreement in the post.

 

A rent roll is the only asset of the agency - if the agency has grown then they will reap the benefits when it is sold. As for why they would sell part, to get rid of painful managements, poor performers or a secure portion whilst it re-signs any which are on holdover.

 

You should have received notification of changeover and have been provided with the new PO Forms (QLD) to go through. This is just formality, you are able at any stage as with previous agents, able to choose who you wish to go with.
New PO Form notice periods for termination have been removed so old PAMD 20a form time frames still apply but any new PO (Property Occupations) Forms no longer have time limits so it can be 24hrs if paperwork can be released in time.

Agent regulators in QLD is Office of Fair Trading.