Advice on property Manager

1

1911naomi

Hey - I would very much appreciate some advice on how to deal with the following situation, to leave it with 90 days notice or fight it.

I was with a fantastic property manager/business for years and the owner retired and sold his books to new property business around 3 years ago.

Since changing pretty much have barely heard a thing which Im not saying is a good or bad thing I also admit they continued the cheap management fees around 1% less then other on the Gold Coast so we just stayed with them.

Same tenants have been in the house since we put on the rental market and every year I increase rent. This year as per usual I looked up current rental market and felt an increase was very reasonable as very modern and pet friendly. If agent had of come back and said look, I dont think his is a good idea or tenants will only stay if you dont increase, I would take this onboard at that stage.

Anyway we corresponded by email. Property manager gave me notice lease was coming due what did I want to do. I said please get a new lease 1year again and raise rent by $10 per week.

Didnt hear anything back so I reemailed her again. She said she was seeing tenants soon.

Had to follow up for copy of new lease as I needed it for finance and found she didnt increase rent. After numerous emails and leaving messages I heard her father had passed away, (employer not owner) which I feel very very sorry for her and understand prehaps she was not 100% focussed however the owner should ensure all runs smoothly.

The employee acknowledged she did not increase rent and this was her error, I asked her to then follow up with her manager to waive management fees for 3m as compensation (thinking this was better then nothing as I cant raised tenants rent now and didnt want to push for more and get nothing). This was always with the intention of leaving as I have never been that impressed by their service due to lack of communicatio and response if I have left messages in the past.

So I have decided to change to Ray white who i have more recent properties through, Higher % but fantastic service. Gets back to me before I can blink.

Never changed agents before so thought as I had been with prior agent for so long no "notice period" yet I have 1 90 day waiting period, which really Im better off waiting as I mentioned less management fees however its the principle.

When I emailed current prior/current agency I was giving notice the "new" property manager (same owner still owns but didnt hear a thing) said sorry to hear your leaving have I done something wrong. I said not at all you pesonally explained hard to get in contact etc etc and about the rent issue and after asking her continously said please talk to your manager and she is aware of what occurred adn I feel due to the circumstance my notice period should be waived

This is the email I got

Hello Sam, (my husband)
I am very disappointed that after our discussions when this initially happened that you have made this decision. I was of the understanding that you were happy with the apology. If you were not why didn’t you remove the property then? (because I would loose the 3 months no management fees)

There was never any guarantee that you would have achieved the extra $10 per week rent then. (not relevant)

The rental market now is on the improve, however back when we had that lease signed we were doing the right thing and getting all our tenants on leases so that landlords, like your self didn’t have to go weeks without a tenant and have to pay us a letting fee. (did not discuss with me the reason)

You would have been a lot more out of pocket. A $20 a week raise next time the lease is signed under the current circumstances is not unrealistic.
I am sticking by my decision to keep you to the 90 day agreement.
Kind Regards
Sherri

Shall I leave as is or reply?
 
Too long. Too many emotions. Maybe you could dot pt without the emotion.

You want to terminate your PM agreement immediately but the PM wants to hold you to 90 days? Is that correct?
 
Almost all agencies will take the property now, and waive their fees for the 3 months. I've actually never heard of a business turning down a new client over 3 months worth of fees.

Now that you have upset the apple cart with the owner of the current business, you need to sort something out now. Get a new agent now.

Often the outgoing agencies will take the low road, and effectively stop managing your property now, but continue to collect fees. If they're losing it anyway, they have no 'reason' to chase up rent arrears properly etc.


As for the rent increase issue - was it a mistake or did they negotiate to keep the rent the same? We often leave rents on par after speaking with the tenant. It's almost always better for the landlord to take a $10p/w hit than let a good tenant go (and by good I mean rent on time and house proud). This is of course discussed with the owner before we agree to anything.

If it was agreed to keep the rent the same, then you should have had final approval on that decision. If it was a genuine mistake (these things happen) then the owner of the business has done the right thing by giving you the 3 months free.

If I was the principal of the business, I would probably hold you to the 90 days. If they have compensated you for their mistake, then you've not lost anything, and the business has done all they can to fix the problem. It would be a different story if they had ignored you, or not given you the free management.

Have you asked RW to waive your first 90 days?
 
If you change agents and the notice period isn't waived, then you are liable to pay 90 days worth of management fees.

So multiply your weekly rent by 12.8 (12.8 weeks = 90 days) and then multiply that by the rate you are paying (8% + GST for example).

Ask the agency to take that money from your account now, and then pick up the keys ASAP. Or you can just pay the agency direct.

Don't let them keep the keys and documents for the 90 days.
 
You guys are amazing. Contacted new property manager who said they would waive the management fees for term remaining.

So do I contact current agent tell them I'm moving and to give me invoice of of the remaining mgmt fee and pick up the keys.


Wahahahah (evil laugh)
 
Yep, that's about it. Pay them out and collect the keys and docs.

If they kick up a stink about it, just remind them that you are their employer, and any keys and documents they have are your property.

Hopefully it doesn't come to that - but it often does...

Also, make sure you get a copy of all of the tenancy agreements (including any previous ones for that tenant), original application form (you'll need this if the tenant turns nasty down the track), entry condition report; as well as all the current info - routine inspection reports, ledger, transfer of lessor form for the RTA, keys.

Your new agent should collect all that, but if you go in personally, make sure you get it all on the spot.

Good luck!
 
This is what I just sent off - feel I was very civil ( even though I had a lot more I waned to say) so I guess I'll see what comes back

Hi sherri.

Thanks for your email.

It is naomi rogers as I have always noted in all my emails to flat rate.

I mentioned while I appreciate that part responsibility was taken and part management fees waived as you can read in previous emails I was unhappy with flat rate anyway due to lack of communication and the time it takes to get a response from an email or message left.
Of course I was not going to leave at the 'issue' time as then I would of been at a loss due to your companies error.

I understand that due to your business charging a lessor management fee this is understandable as you may have more properties to manage.

I however have come to the decision that I would prefer to pay a higher few and have better service.

I have another property with the agent I am transferring elanora to who I am vey happy with.

As you mentioned also in previous emails to Elizabeth or previous agent leila, I would of been happy to discuss the rent increase option if your business did not advise to do so however it was not discussed with me and no opinions/ or advice was given.

This is all irrelevant now.

I wish to transfer my property to my choice of agent effective this Friday or whenever suits in the next week.

Please give me an invoice for remaining management fee I will owe for remaining 90days broken down so I can easily understand.

I will transfer this amount to you and joe from ray white Coolangatta will be in touch to collect keys, all tenancy agreements, original appli action form, entry report, current info- routine inspection report, ledger, transfer of lessor form for Rta and anything else I may be missing but is required.

I am sticking to my contract with flat rate (re noice) so I appreciate if we leave it as is and just organise the transfer


Kind regards
 
She just came back and said . Yes will get this arranged
Will let you know once changed and all is done and dusted. Thanks again never knew half this info and will be extra careful looking at contracts insign with agencies. Such as shorter notice if u leave them(I prefer to stay with same one/s). Also do agents charge a fee normally when increasing rent for a renewed lease (same tenant)
 
I charge one weeks rent + GST for placing a new tenant, but the lease renewals are included in our management fee.

Many agencies do charge half a week to a week's rent at each lease renewal, regardless of whether the rent is increased or not.

There are other fees like maintenance commissions, statement fees, quote fees, valuation fees, routine inspection fees etc - that some agencies sneak in there.

I have never personally used an agent (other than Metrocity of course) to manage my own properties, but if I ever did, I would ensure that I sign a document that includes a comprehensive list of all charges and fees that I may be asked to pay. Then they can't hit you up with "oh by the way, there's a fee for that".
 
Hi agent came back with invoice
90 days less 14 days (as 2 weeks rent has been paid by tenant and we were harmed management fees) = $319.20 + gst
( she said $4.20 per day)

I don't want to be too annoying however I have notice on the 1st of feb so to me I feel this should be the calculation

90 days less 21 days (1st-22nd feb) less 14 days (as per above) = 55 days @ $4.20 per day = $231 + gst?

Is this correct ?

Naomi
 
Your 90 days should start from the 1st Feb as that's when you gave them notice.

What exact date is the tenant paid to? You have paid management fees already up to the tenant's paid-to date, so however many days that is past 01 feb is how many days you have paid, so subtract that from 90, and multiply by $4.20.

Their paid-to date will not be accurate on your last statement, so you need to either request a ledger, or ask the RE.
 
Thanks matty- this is what agent came back with-


No this is not correct. I don’t know how to explain it any other way than I have.
It is 90 days less the 14 days they have already paid. We will get commission for the 14 days at the end of the month, when you get the rent money. That leaves 76 days still to be paid.
It doesn’t matter about it being the 22nd today.
If you don’t understand please give me a call.



Me again - I think I get it, it's along the lines of what you said.

I'm just going to pay and get it over with and move on :)

On another notes it's wine 0'clock AND it's the weekend
 
Just make sure that when you sign the PAMD with the new agent that you cross out the default 90 days notice and change it to 30 days (or the minimum allowable).
Marg
 
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