Multi-listing/agency agreement notice period

[oneworld]

I have read a thread about multi-listing your investment property (mine is in Sydney, NSW) for renting out. It is a relatively new concept to me. I didn't even know until recently that you could do something like this. It seems that it has its pros and cons. Personally, I feel more comfortable with selecting the agent I think is the 'best' and giving him the business. However, I would like to know how common it is. Does every other investor engage in multi-listing for letting out a property ? Is this something I should consider seriously ? Can people please tell me:

1. If I go for multi-listing for letting out, what kind of agency agreement do I sign with the agents (is it called an open agreement ?) ?

2. Can I bargain on the agency agreement notice period (in case of exclusive agency agreement). I think agents tend to put in 60 or 90 days notice period for terminating the agreement. That seems a long period in case you are not happy with the agent and want to change the agent. How common is it to bargain the notice period and bring it down to 30 days ?

 

[Ed Barton]

I would not use a PM who would accept a multi listed rental.

 

[handyandy]

I don't quite understand what you mean by multi listing but my managing agent has used local agent (local to the property) to help find tenants.

This is for a couple of properties that I have which are not located in the appointed agents normal area.

We then pay the local agent a weeks commission (if their tenant is successful) and they exit the scene. From this point on we simply deal with our appointed agent.

Cheers

 

[Belu]

99.99% of the time we don't do multi-listings. I think they change the mind-set, in both rentals and sales, from getting the best tenant/purchaser and price, to getting anything before the other mob does.

I have seen this in other agencies, and have seen good agents excuse more then they normally would to get it over the line and it has backfired.

I would never recommend it and for my investments external to where I am, as Ed says, wouldnt use someone who does it.

Cheers

Ben

 

[liverpoolharryk]

If you wanted to use 2 agents to find the tenant make sure that in your agreement it states that it will only be managed if they are successful in securing a tenant. If you sign 2 agreements you my get caught legally having to pay 2 fees, so make sure a clause in in there to counter act that scenerio.

My advice is to always go with 1 agent, tenants will find your property regardless if you had 10 agents as long as the agent you are using has the property advertised in the right websites/papers etc and making it available for viewings etc...

I have seen on many occasion owners getting no so good tenants because agents will just put anyone in there as quick as they can to they get the management over the other agents.

1 agent, the one you think will do the best job for you is the way to go...

The notice period can be anything you and the agent agree on, we don't have a notice period at our agency. I think if the owner is not happy then they should have the right to take their business elsewhere on the spot......

 

[oneworld]

The notice period can be anything you and the agent agree on, we don't have a notice period at our agency. I think if the owner is not happy then they should have the right to take their business elsewhere on the spot......[/QUOTE]


Good advice !

On notice period..agents seems to use the standard form (REINSW, exclusive management agency agreement) in NSW. That has one section for termination notice. When the last time I got quotes, agents had put in 60 days/90 days etc in this section. I didn't know that this was negotiable. But I have read in some threads on this forum itself, that notice period is negotiable. For example, one person had mentioned that he was able to negotiate a notice period of 28 days. But not sure if he was using one of the mainstream agencies or a boutique agency. At least all the mainstream agencies do have notice period. Not sure if anyone has experience in bringing it down (preferably to a month or so).

 

[priscilla]

The notice period would normally be negotiable, however you need to be aware that it goes both ways, so if the agent doesn't want to deal with you any longer (trust me it does happen!!) and you have immediate termination in the agreement you then need to find another agent straight away to be prepared to take on the property with any and all outstanding issues there may be. The notice period is for the Landlord as well as the agency to ensure all outstanding matters can be dealt with.

Would have been more than happy on several occasions for immediate termination on some Landlords

 

[menty]

I listed mine with 2 agents and both were happy to let whoever leased it out to manage.
Granted, mine was with the first agent for over 4 weeks

I was told it was perfectly legal to multi list. Obviously I let the original agent know before I went ahead, and they were more than happy to oblige