can I sack my PM mid lease?

[Gruntus]

having some troubles with the PM, wont return emails.

Tenant has made some claims for maintenance, pm gave us tenants number to contact, but the tenant is non contactable. Have emailed PM three times regrding this and other matters and just dont get a response.

On top of other poor service in the past I think it is time to part ways. lease runs til oct, can we just fire the pm now or do we have to wait til the end of the lease?

 

[Savanna100]

Check your agreement with the RE agency, I think its about a months notice to terminate your PM. I've walked into an agent in the past and sacked them over the counter (and followed it up in writing).

I'm very lucky that my Melbourne one is awesome but there are some serious duds out there.

 

[PropertyMan66]

Termination of Management Agency Agreements

The management agency agreement is a commercial agreement between the property owner and the real estate agent. It will have a clause for termination and this is usually entered by the agent and agreed by the owner. 30 days is a common notice period, 60 days is becoming increasingly accepted in metropolitan areas. In regard to the actual process - it is normally only considered legal to terminate a written agreement with a written notice however it is important to understand that an agent only has the ability (according to the agreement) to charge fees based on rent received. If you, as the owner, direct your tenant to pay their rent elsewhere, the agent is powerless to take fees. Therefore the management is effectively terminated.

 

[neK]

So what you're effectively saying is

1. Advise the PM in writing you are terminating them
2. Let them continue managing the tenant for 60 days
3. Have the tenant direct the rent to you or the new PM.
4. The existing PM "manages the tenant" therefore they are entitled to charge the sundries and postage. While they are allowed charge you a % on the rent received, given they are not receiving the rent the most they can charge is % on $0, which is $0

Therefore the most you have to pay is $5 to $10 p/m for the sundries for the next 2 months.

Is that correct?

 

[PropertyMan66]

It's that simple really

Yes neK, the agent has no authority to take fees other than those on the agreement, which are a % of rent received.

 

[neK]

That is AWESOME!!!!

I like it!

Is there a possibility the agent can try and sue you for it though?

 

[Peterw]

Guys, I am sure that you can understand, that as PM, no one likes to hear that one has been letting either their clients (LL's) or their customers (Tenants) down, but sadly I know that happens from time to time. Usually, when we meet some one that is unhappy, and would like us to take over, we handle it all from there, ensuring that the outgoing PM is fairly treated, without compromising the position of the LL. We seem to be able to arrange a fairly seemless and painless transfer, and I am sure most can do that.
regards

 

[PropertyMan66]

Is there a possibility the agent can try and sue you for it though?

I am not aware of any agent ever suing for a few months management fees, it wouldn't be worth the hassle.

It is of course far better to exit your agreement by negotiation with the agent.