PM having a right laugh

Discussion in 'Property Management' started by charttv, 6th Oct, 2010.

  1. charttv

    charttv use sunscreen

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    I vaguely recall this being the status quo in WA despite it's absurdity, is this normal?

    Suggested management agreement contract landed on my desk.

    In it the property manager has cheekily inserted a clause to take 50% of their forecast property management fees for the life of the contract (upto 2 years) even if I sack them for failing to perform their duties/incompetence.

    So, they suggest you sign a contract (preferably for two years) and one month in they could be duds and I boot them. Under the contract they are entitled to 50% of the management fees for the next 23 months! This is absurd.
     
  2. jaycee

    jaycee Member

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    Yeah just mention to them somethign like, I've never seen that before and see how they react...

    If they dont' offer to get rid of it suggest that you can't/won't want to sign that and see what they say.

    The last PM I used did that (crossed it out of the agreement).. .and I did end up getting rid of them not long after 1 month - hey, first month, they didnt pay me the rent they collected, 2nd month they paid me the wrong amount... no return of my emails/ph calls until I faxed and emailed a cancellation of contract - within 3 minutes the prop manger gave me a call asking what was wrong ... sigh.....
     
  3. Dazz

    Dazz Banned

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    Can you tell me why people always ask "is this normal, or is this "standard"....when they clearly realise they are getting shafted big time ??


    Does the fact that everyone else gets shafted with a contract clause somehow make it feel better when you also sign up to be shafted ??


    I never get the thrust of that sort of line of query.


    The contract can state whatever it likes, you just need to get the trusty ol' red pen out and modify it to suit you needs before signing. She's all up for grabs.


    This type of question assumes two things.....number one is victim mentality and secondly you are definitely playing second fiddle to the other party to the contract....in this case the Agent whom you are employing.....which just ain't right, IMO.
     
  4. charttv

    charttv use sunscreen

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    It's okay Dazz, i've already crossed it out.

    I should've added, they've cheekily inserted a clause under this stating that REIWA reckons such a clause is A-Ok in their opinion. Will have a word with REIWA about this.
     
  5. normailson

    normailson Member

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    I honestly cannot believe these clowns - sorry, but I can't think of a better term - still doing this sort of thing.
    Do they really think their <proverbial> don't smell i.e. there are not good property managers out there offering fair and reasonable terms?
    Clearly, there were lots of naive people around!
    I recently got a multi-vendor package from a group based in Bayside Melbourne for 5.5% across the board relevant to Brisbane, Sydney and Melbourne. What is more is that they offer the first three months on each property for free without a lock-in period. :D
    Given that the first three months may be hell (the reason driving a change of PM), this is the complete opposite.
    The negative is that they focus on inner ring. The principal of this company contributed here once and espoused inner ring development.
     
  6. jaycee

    jaycee Member

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    i.e. there are not good property managers out there offering fair and reasonable terms?


    From the 4 companies I have dealt with, no there is not anyone offering fair and reasonable terms.... !!
     
  7. csc2

    csc2 Banned

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    this is a disgrace...

    name them and shame them.. nothing illegal in that and it may help someone on the forum.

    how many have been sucked into this previously you would have to wonder.

    i have never heard of something more cheeky...they must be struggling with sales to use that as a guaranteed income..

    disgusting agent tactics, be it legal, it smells bad morally in my opinion.
     
  8. charttv

    charttv use sunscreen

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    Apparently, REIWA have a template form for agents with this clause in it!

    I imagine many landlords would just sign the form without reading the fine print and crossing it out.
     
  9. jaycee

    jaycee Member

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    yeah I reckon REIWA are just grrrrreeeeeaaaaat and so helpful to me as a landlord :rolleyes:
     
  10. chilliblue

    chilliblue Member

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    If someone cannot be bothered to spend a miserly 5 minutes to read a bit of paper than they deserve what they get.

    You should never sign anything that you do not understand especially if you expect to make money.

    These types of clauses are inserted for those silly enough to accept them.