How to terminate Agent that is managing our IP?

[Lisamcm2]

Hi guys, really appreciate all the help I've got from this site!

I plan to send a letter to our Agent that is managing our IP (was very unhappy with initial service and rudeness, we actually placated the tennants and got them in there after harsh treatment by the agent) but had already signed the contract and wasn't sure how to get out of it).

The contract states we must give 30 days notice to terminate the service - and we must pay the agent what commission they would have made until the current lease expires (thus the initial hesitation in cancelling). The tenant's lease expires Aug 23rd, so I was going to give the agent notice now, effective as of the 23rd Aug.

My question is given the mis-management and messing about by the agent in the past, I hesitate to let them see this lease out - I'm wondering if perhaps I should terminate it a week or even earlier than the lease (even if it costs us a little in the management fee) and then offer the tenants a weekly periodic lease (we're very happy with them and they are very trustworthy)- they will more than likely leave at the end of their lease, but if they no longer have to deal with the agent, I'm thinking they would be happy to stay a little longer - & we're happy with a weekly lease - Now, what do I do about the bond the agent is holding for them?? Do I need to create an account of my own for the agent to transfer? Do the agents keep the current lease they signed or do they hand it over to us?

I plan to engage another agent in the future - but just want some breathing space if I can while I have the great tennants! Visited another Agent to suss them out and one staff member was quite rude - if they're rude to an owner, I shudder to think what they would be like to a potential tennant!

thanks
Lisa

 

[The Y-man]

Generally the bond is NOT held by agents (unless things are different in NT which wouldn't surprise me! )

When we want to change agents, we find a replacement one first, and then they do all the "dirty" work to get things moved over.

The Y-man

 

[Lisamcm2]

yes, actually sounds like the best idea!! Thanks, Lisa

 

[Ozziespur]

We too are in the early stages of changing PM's. Do I have to write to my PM advising termination (we also have to give 30 days notice), or does the new PM take care of this on our behalf ? If we advise our PM in writing is there anything in particular that I should include in the email ? I was thinking just to keep it short & sweet and not go into reasons why etc just that we are terminating and giving the obligitory 30 days notice to cancel.

Any input/advice appreciated. If anyone has an example even better !

Cheers,

Scott

 

[The Y-man]

We too are in the early stages of changing PM's. Do I have to write to my PM advising termination (we also have to give 30 days notice), or does the new PM take care of this on our behalf ? If we advise our PM in writing is there anything in particular that I should include in the email ? I was thinking just to keep it short & sweet and not go into reasons why etc just that we are terminating and giving the obligitory 30 days notice to cancel.

Any input/advice appreciated. If anyone has an example even better !

Cheers,

Scott

Our new PM has always given the old one the bad news....

The Y-man

 

[russellpeter]

We too are in the early stages of changing PM's. Do I have to write to my PM advising termination (we also have to give 30 days notice), or does the new PM take care of this on our behalf ? If we advise our PM in writing is there anything in particular that I should include in the email ? I was thinking just to keep it short & sweet and not go into reasons why etc just that we are terminating and giving the obligitory 30 days notice to cancel.

Any input/advice appreciated. If anyone has an example even better !

Cheers,

Scott

AT Pure Rentals we find its best if we give the notice.

This allows us to arrange for the pick up of the paperwork and keys + a lot of times we find the outgoing agent tries to pull a swifty on fees and this allows us to make sure its a smooth process and everything is in writing and on our records.

regarding the 30days notice most agents will take over ASAP and manage the property from free for this time.

better than waiting 30 days with a PM that you are not happy with.

 

[Ozziespur]

Thanks for the feedback guys !

 

[tvadera]

Hi,

Find a new PM, they would notify the old PM and would collect your file from the old PM

Entire rollover process would take 24-48 hours, you dont have to do anyhting except find a new PM

Hi guys, really appreciate all the help I've got from this site!

I plan to send a letter to our Agent that is managing our IP (was very unhappy with initial service and rudeness, we actually placated the tennants and got them in there after harsh treatment by the agent) but had already signed the contract and wasn't sure how to get out of it).

The contract states we must give 30 days notice to terminate the service - and we must pay the agent what commission they would have made until the current lease expires (thus the initial hesitation in cancelling). The tenant's lease expires Aug 23rd, so I was going to give the agent notice now, effective as of the 23rd Aug.

My question is given the mis-management and messing about by the agent in the past, I hesitate to let them see this lease out - I'm wondering if perhaps I should terminate it a week or even earlier than the lease (even if it costs us a little in the management fee) and then offer the tenants a weekly periodic lease (we're very happy with them and they are very trustworthy)- they will more than likely leave at the end of their lease, but if they no longer have to deal with the agent, I'm thinking they would be happy to stay a little longer - & we're happy with a weekly lease - Now, what do I do about the bond the agent is holding for them?? Do I need to create an account of my own for the agent to transfer? Do the agents keep the current lease they signed or do they hand it over to us?

I plan to engage another agent in the future - but just want some breathing space if I can while I have the great tennants! Visited another Agent to suss them out and one staff member was quite rude - if they're rude to an owner, I shudder to think what they would be like to a potential tennant!

thanks
Lisa

 

[Ozziespur]

Interested PM says we have to notify old PM ourselves in writing AND they will not take over for free as their system doesn't allow it so we must stick with old PM for 3 of the 4 weeks remaining. See response here:

Changeover from your old property manager to ourselves requires professional yet polite and concise instructions regarding how, when and where. Assuming you send written notice to terminate your agreement with the other agency and once I received your signed authority back, a week prior to the expiry date, a letter will be sent to RW giving notice that I will pick up what is known as a ‘Handover’ pack. The pack will have a list of info including your tenants contact details, their General Tenancy Agreement, keys and the tenants ledger. If the tenant has paid up to a date after we begin management, the rent receivable by my Trust A/c will begin the next day. The software does not have the ability to ‘double up’ and consequently doubling up management fees etc. The old manager will disburse any funds to you regardless of their end date.

Doesn't fill me with confidence I must say. Problem is my wife has verbally agreed to move to this new PM ... Obviously we've signed nothing and have no obligation, but it's not an ideal situation to be in either.

 

[russellpeter]

Interested PM says we have to notify old PM ourselves in writing AND they will not take over for free as their system doesn't allow it so we must stick with old PM for 3 of the 4 weeks remaining. See response here:

Changeover from your old property manager to ourselves requires professional yet polite and concise instructions regarding how, when and where. Assuming you send written notice to terminate your agreement with the other agency and once I received your signed authority back, a week prior to the expiry date, a letter will be sent to RW giving notice that I will pick up what is known as a ‘Handover’ pack. The pack will have a list of info including your tenants contact details, their General Tenancy Agreement, keys and the tenants ledger. If the tenant has paid up to a date after we begin management, the rent receivable by my Trust A/c will begin the next day. The software does not have the ability to ‘double up’ and consequently doubling up management fees etc. The old manager will disburse any funds to you regardless of their end date.

Doesn't fill me with confidence I must say. Problem is my wife has verbally agreed to move to this new PM ... Obviously we've signed nothing and have no obligation, but it's not an ideal situation to be in either.

I have used most property management software that in currently in the market and everyone has the option to manage for free, you just change the management % to 0.00 so if you neg on fees they have this ability.

the way they do handovers are interesting and not the best way for the investor.

good luck as long as you feel confident they know what they are doing and can manage your property to a high standard you should be fine. may be worth sending an email enquirer wanting to inspect a property and see what happens. or call asking to inspect a property to test them.

I find the first thing you should look at when picking an agent is there online marketing Photos and response times to questions.

 

[handyandy]

Interested PM says we have to notify old PM ourselves in writing AND they will not take over for free as their system doesn't allow it so we must stick with old PM for 3 of the 4 weeks remaining. See response here:

Changeover from your old property manager to ourselves requires professional yet polite and concise instructions regarding how, when and where. Assuming you send written notice to terminate your agreement with the other agency and once I received your signed authority back, a week prior to the expiry date, a letter will be sent to RW giving notice that I will pick up what is known as a ‘Handover’ pack. The pack will have a list of info including your tenants contact details, their General Tenancy Agreement, keys and the tenants ledger. If the tenant has paid up to a date after we begin management, the rent receivable by my Trust A/c will begin the next day. The software does not have the ability to ‘double up’ and consequently doubling up management fees etc. The old manager will disburse any funds to you regardless of their end date.

Doesn't fill me with confidence I must say. Problem is my wife has verbally agreed to move to this new PM ... Obviously we've signed nothing and have no obligation, but it's not an ideal situation to be in either.

The BS meter is screaming loud and clear.

If this is how they carry on to get the business what will they sprout to keep the business.

Russelpeter operates in Brisbane why not have a chat with him.

Cheers

 

[Monkey]

Check also for a "file closure" fee in your contract (that's on top of the 3 month penalty)....

 

[Ed Barton]

regarding the 30days notice most agents will take over ASAP and manage the property from free for this time.

When you take over from a 'poorly performing' PM, how often is it a LL with stupid expectations, rather than a bad PM?

 

[Ed Barton]

I find the first thing you should look at when picking an agent is there online marketing Photos and response times to questions.

+1

And second is their response time, from enquiry to signing a contract. Rentals move much faster than sales. Generally when selling the parties have plenty of time. A tenant has given notice, and has two weeks to find somewhere and may go for something suboptimal just to secure somewhere.

 

[russellpeter]

When you take over from a 'poorly performing' PM, how often is it a LL with stupid expectations, rather than a bad PM?

sorry Ed missed this question.

there are always owners that are harder to deal with than others.

but I find with most take overs its the agency that does something stupid

most of the time its maintenance combined with lack of response to requests.

or maintenance + last time it took 2 weeks to tenant and i had no feedback.

i have taken over some and afterwards found out that its the owners that are the issue. they either come to their senses or i ask them to find a new agency.

some people shouldn't be allowed to own investment properties.

just look at the deck in SA the other week with the baby dying.

i will not have something like this on my head.

 

[Ozziespur]

If/when anyone has left a PM have you still recieved your end of financial year figures from the former PM ?

 

[Scott No Mates]

Yes or a final statement for the ytd.

 

[Ozziespur]

Yes or a final statement for the ytd.

Thanks. Good to know.