ADVICE NEEDED: Managing RE agent closing down during current lease

[ca295]

Hi all,

Quick question for you all. My managing agent (who has been horrible with paying rent etc - I have had to threaten him several times) has now shut down his RE business or "sold" his rental roll to another agent which he is now working for.

The tenants could not pay their rent today as the office was closed. They nicely gave me a call to let me know. I need some advice on the legalities. We are 4 months into a lease and I would prefer to terminate the agreement as the agent has been a nightmare.

My concerns are:

- Can I legally terminate our lease agreement as the business I had an agreement with is shut down?

- How do the tenants get their bond back from this closed business.

Advice would be much appreciated.

CA

 

[DaveM]

Check your mgmt agreement, there may be an assignment clause, perhaps wth your consent perhaps without.

I have in the past simply ordered them to handover the ledger to a new PM regardless of termination notice periods if they have been incompetent. What are they gonna do, sue you over 3 months PM fee worth a couple of hundred?

 

[datto]

I have been in this position twice before because the ratbag agent went bust.

The closing agent should have sent you a letter recommend you sign a new agreement with the new agent. They should have then informed the tenant of the agent.

 

[ca295]

Thanks for both your prompt replies.

The agent is a shonk (sometimes taking 8 weeks to transfer rent - after I finally threaten them) and I am more worried about getting my last rental payment and also the tenants bond so I can start a new lease elsewhere.

He did give me a call today asking to meet up and move over to a new agency he is working at, I was just wondering what my legal position is in this instance as there is a current lease. The tenants actually couldnt pay their rent today, the shop front was closed.

 

[DaveM]

Lease is between you and tenant,that does not change. You can remove and appoint a new agent without any change to the lease terms or length.

Choose a new PM or ask for a recomm here for the area, and they can do the whole changeove for you.

 

[SK Investments]

The lease with the tenants is separate to the management agreement with the agent.

You can change managing agents and maintain your current lease with the tenant.

IMO find another agent, normally they will get the rent roll etc from the other agent. As mentioned normally there is a notice period but under the circumstances maybe not.

 

[ca295]

Just to clarify everyone - I signed an exclusive management agreement with the said agency that is closing down. we are 3 months into a 6 month agreement.

Would the bond be lodged by the agent with the agent and tenant or landlord and tenants details on it?

 

[Salvatore1]

You agreement is with the closing agent only, the new agent needs you to sign a new agreement for them to take over, if you do nothing the new agent will take over as the old has closed down. Therefore if you wish to sign with someone else you can and let the new manager organise the take over. They will also organise for a change in bond management form to be completed for the bond to transfer to the new agency. Hope this helps.