Offer a lease or change PM?

[CHAOS]

Have an IP. Has not been managed well. In the last 12mths I have taken an active approach to managing the PM to manage the IP.

Today I was given a heads up that he is looking for another property. This has come about after he was finally served and official breech of tenancy.I think he is expecting this to lead to him being asked to leave so he is getting in first.

The breech was for the lack of maintainence and rubbish in the yard and surrounding the house. We asked for it to be cleaned as we need to repair fences and the rusting roof and tradies need access to quote. We would like to hire a gardener but there is too much rubbish (accumulated over years and not addressed by the pm).This has partially been done.

1.
The issue is that I expect the clean up bill when he vacates to be substanially more than the bond he paid several years ago. I don't trust my PM to be able to make a claim for the bond and additional compensation if the need arises. Should I change PMs immediately?
2.
Obviously we want rent coming in. Would it be wise to offer the tenant a 6mth lease (current periodical)? This would give him the security that we are not evicting him (yet). And for us we can get quotes and devise a time frame / plan for the repairs.

We were planning to get the exterior of the property in order with the tenant there and when that was complete evict tenant, clean up the interior and hire new PM.

Any constructive advice from those that have been there?

 

[Lil Skater]

I'm hoping this is both residential and in Vic, but what I've done, and it worked (surprisingly)

First up, change PM immediately, no point wasting time and money on someone not doing their job.

New PM issue a breach, inspect in 14 days, second breach if not cleaned and then get PM to advise they will breach again and if within 14 days not complete a 14 day NTV will be served for successive breaches. Technically you only new two breaches, but a lot of members like 3.

It took me until my final breach to get one particular tenant to clean up, but he did because 14 days when you don't have great references isn't a great deal of time to get a new place.

Unfortunately if it doesn't work you will need to claim out of the bond.

Whilst doing all this you can (with a good PM) get all your quotes done for the exterior and do interior between tenants.

 

[CHAOS]

Thanks Lil Skater

Yes Vic Yes Resi

How do you choose a better PM?

I went into half a dozen RE's in the area in Jan. The PM that was most helpful and professional was from the agency we bought and initially rented the property through. The PM at the time took the rent roll with her when she left so that is how (after 3 more agencies) we ended up where we are now.

So while I liked this PM I took some time to think about changing. I went through some old files and then remembered that the statements from this RE were erratic and the EOFY statements were always wrong. From another thread this brand of RE probably has the gateway payment system.

So we have stuck with better the devil we know and consistent and on time rent payment while we figure this out. We did not expect him to look for another property.

 

[Lil Skater]

Usually landlords would choose to get an appraisal done, where most agents put on their best behavior to win you over.

I'd interview a few and just ask about their systems, even not great property managers can be better at their jobs with good systems in place.

 

[PMmegan]

Hi "chaos"

I work in the industry on the Mornington Peninsula. You certainly shouldn't have to be managing your property mananger!

1- The PM needs to ride the tenant to clean up the property before he/she vacates. Threaten the tenant with NTD lodgements and retaining the bond. The bond should be used for costs not covered by most landlord insurance policies such as internal cleaning, rubbishe removal and garden clean up. Once you absorb the bond from these things you can claim other items on insurance. Ensure your insurance policy covers for "accidental damage" and the excesses aren't huge.

Having a tenant removed on breach notices is VERY difficult and sometimes a 120 day Notice to Vacate is far more successful when you just want the tenant to leave.

2- If the tenant is staying on at the property it gives the PM opportunity to conduct regular inspections (once a month) ti get the tenant to gradually bring the property up to scratch. I have done this for a landlord who could not afford to carry out repairs / improvements if we evicted the tenant but the tenant was not maintaining the property well at all. I did routines once a month and gave the tenant a list of items i wanted done by the next inspection. This worked and the landlord wasnt out of pocket from a long vacancy period.

Hopeully I have assisted, let me know if you would like any further advice,

PMmegan

 

[Lil Skater]

Megan, how can you carry out a routine inspection every month..?

 

[esh]

Yeah, unfortunately i think that's illegal. From top of my head you can not do more than 2 inspections in a 12 month period. I'm pretty sure it's 2. Although what you did was acting in the best way for your landlord just be careful it may even cost you in the future. The law loves tenants