Breaking the Agent's contract

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From: Sheryl Young


Hey all,

I've just had a dispute with my agent over the transfer of my rental funds from my one and only IP. The tenant (who I have met) has so far paid the rent on time but for the second time the agent has held off paying the funds into my account. After some deliberating (actually a good old fashioned argument) he told me if I wasn't happy then I should find someone else to handle the property. Now this is fine by me, a welcome relief actually as his attitude hasn't been the best from the start. So.....my learned friends my questions are:
a) who do I contact for advice about the contract I have with the agent?
b) will it be easy enough as he is requesting I take my business elsewhere?
c) can I now approach the tenant and let him know about the situation and possibly take the rent direct from him ( I can reduce his rent now I dont have to pay an agents fee)?
d) what happens with the bond, do I just let the office that holds it know about the change in circumstances?
If anyone has a similar experience can you pls let me know how you got on.
With the school holidays approaching I can do some phoning and running around to get this all settled. The lease with the tenant is until November.....he is a landlord& homeowner himself (marital separation)and said it was a pity we couldn't have eliminated using an agent in the beginning, however the deed was done by that stage.

regards
Sheryl )

 

[paulzag]

Reply: 1
From: Paul Zagoridis


Hi Sheryl

I'm far from a learned friend. More an enthusiastic finger painter!

Asy will probably answer you legal/REA questions regarding Victoria better.

As your agent has failed to perform his duties, your best course is a call to the Real Estate Institute for your state.

Make a file note of your conversation with the agent. I'd send him a letter thanking him for his resignation, you hereby accept it.

If you don't mind some maintenance calls on the property from the tenant go ahead and manage it yourself. But if you're looking forward to the school holidays to make calls do you really have the time or inclination to self manage?

Also self managing is great when things are going well. When the tenancy get ugly, self-managing sucks.

We also rent and own IP's. So I think we're pretty good tenants (don't tell Gai about the footprints up the walls from my daughters 8th birthday party). Kids!

Paul Zag
Dreamspinner
The Oz Film Biz site is archived at...
http://wealthesteem.dyndns.org/

 

[asy]

Reply: 1.1
From: Asy .


Hi,

As usual this information applies in Victoria, but may not apply in other states, and my usual request of PLEASE TELL US WHAT STATE YOU ARE IN also applies!!! )

Give the agent notice in writing that you are rescinding your authority. At the same time request in writing the return of your file, and all the information contained therein, especially the condition report and the RTBA forms.

The bond is held by the RTBA (Residential Tenancies Bond Authority) in the name of the tenant, not the agent, so I don't think you have to contact them, but might be worth a call just to check.

Give your tenant notice in writing that "For the moment" you will be collecting rent yourself, if that's what you want to do, but, take my advice, DON'T DROP THE RENT. There are two reasons for this, firstly, should you decide to have another agent manage the property later you have their fee built in already, and, if the property is worth the rent, it is worth the rent! And a dollar in your pocket is MUCH better than a dollar in his. If he is a good tenant value add in other ways, but NOT in a rent reduction.

Good luck with it, I hope it goes well...

asy

"Don't forget what happened to the guy who suddenly got everything he ever wanted...
He lived happily ever after.
(Willy Wonka).

 

[JoannaK]

Reply: 1.1.1
From: Joanna K


Hello Sheryl,

ASY's advise is spot on, but you may need to contact the rental bond board and request a change of managing agent/owner form to inform them that you are now managing the property yourself, otherwise the agency will still have access to the bond.


Kind regards
THE RENTAL SPECIALISTS

JOANNA KARAVASILIS
Principal

[email protected]
www.rentalspecialists.com.au