Lease finishing soon - is it also a good time to finish with the PM?

Considering changing my PM. I would ideally like to change now because the tenants lease is coming to a close. The agreement with the PM is standard 90 days notice, so does the property becoming vacant mean I could end the agreement without penalty costs?

Also, if I did change and there were issues with the departing tenants, who would be responsible for sorting it out?

Any thoughts welcome.
 
I don't deal much with PMs, haven't had the need to with my properties...but I thought that would be the worst time to change PMs...in that you need them to find you a new tenant, the best time is when you've got a long term stable tenant IMO, what do others think??

Having said that, if they're doing a bad job, drop them ASAP!
 
I would wait until the outgoing tenant is finalised before you switch. If you do switch and there is an issue the old PM has no reponsibility to help you with anything if you have terminated their agency. The main one i have had happen to me is the tenant blaming parts of damage on things that happened during the tenancy just as leaks, tradesmen coming in, apparently the previous property manager accidentally broke a blind while there and it was never fixed etc etc...

however it is nice to have a new PM fresh with the tenants.

Is the market strong in your area? could you afford to have a short vacancy. So that you can finalise with one PM have a couple of days and then start fresh with a new one who can find a new tenant.

Of course you are still going to have the issue of the 90 days notice and if the current PM will let you shortern it to coincide with the property being vacant. We would in our office as it is MUCH easier to hand over a vacant property than a tenanted one, at worst you could offer to pay them out the management fee they would have missed.. on $500 per week at 6 % this is about $385..less than a weeks rent might be worth it if you really dont like your current PM.
 
If you do change, just ensure that when you sign the new agreement you cross out the standard "90 days" notice period and insert 30 days maximum. We only got caught with the 90 days once.
Marg
 
..but I thought that would be the worst time to change PMs...
....Having said that, if they're doing a bad job, drop them ASAP!

I would wait until the outgoing tenant is finalised before you switch....

Yes, that makes sense. I thought I had read a previous thread where someone moved PMs at the end of the lease and that the new PM tidied up the mess, but it could certainly complicate matters.

Even if I couldn't afford to have a short vacancy, I won't be surprised if I end up with an extended vacancy as recruiting for new tenants isn't a strong point for this agency.

Guess I will see how it flows at the end of this tenancy, and if not progressing well will give notice to end the agreement.

If you do change, just ensure that when you sign the new agreement you cross out the standard "90 days" notice period and insert 30 days maximum. We only got caught with the 90 days once.
Marg

If a PM is confident in their ability to deliver good service then they will be confident in signing off on a 30 day notice period so I will make a definitely change that on any new agreement.
 
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