PM's selling their rent roll

[D.T.]

Hey guys,

Have you ever owned a property that was managed by an agency who sold then their rent roll and you end up being with another agency?

How was the transition? Did you stay with the new agency? Does the management agreement continue as is or is a new one needed? Did your rates change?

 

[impala67]

Fruit to Ray White, staff and everything stayed the same. Agreement continued. Don't remember any changes. Few years ago and still with them.

 

[datto]

Hey guys,

Have you ever owned a property that was managed by an agency who sold then their rent roll and you end up being with another agency?

How was the transition? Did you stay with the new agency? Does the management agreement continue as is or is a new one needed? Did your rates change?

Yes, on two occasions. Good riddance to them both, they should never hold a licence again. The both went broke (probally due to heavy gambling) and it was a real pain to get my money from them.

PM number 1 (a reputable franchise name btw) went belly up and sold rent roll another PM up the road. Transition was fairy smooth, just had to re-sign agreement, rates stayed the same. I gave the new PM the flick after about 2 years.

PM number 2 went belly up also and sold what was left of his rent roll to another. Smooth transition, re-sign lease and same conditions.

Here's a few telltale signs that your days with your PM are numbered:

PM shares their fascination with gambling with you

Rents don't appear to be credited to your bank acct anymore

Calls aren't returned and when you visit PM, he's "out"

You see PM's office for lease on another REA's window

When you finally catch PM he gives sob story....about his divorce

You receive letter advising rent roll has been sold to another agent

 

[Jamie M]

Had an IP managed by a national franchise who sold on to another. No huge dramas during the transition - the experience usually comes down to the individual looking after your IP.

Cheers

Jamie

 

[fernfurn]

Just been through it and was rapt to be able to shift to another agent as when I first signed it was for the prestigious position of the re premises for whenever we sold. Then they couldnt make the rent on the posh premises, shifted 3 suburbs away to the backblocks. She was always late and erratic with the rent, I'm sure they used to invent easy to fix maintenance problems and then her husband would fix and charge me, I could never get invoices out of them. Then when they sold out it was to a re about 8 suburbs away. We had long term tenants but if they ever left I think it would be a problem re-letting and collecting rent with an out of suburb agent. So I was happy not to continue with the new one and found one in the same local suburb to our rental. Previous one very ticked off I would not transfer moaning "after all I've done for you" what a load of ..... Transition went smoothly and are happy with the new one. still the same tenants (who only wanted to rent for 6 months as they were buying a house - that was 5 years ago!)

 

[Scott No Mates]

still the same tenants (who only wanted to rent for 6 months as they were buying a house - that was 5 years ago!)

they've probably bought many but remained as renters, reaping the benefits of negative gearing whilst paying rent in a better area than they could afford to buy.

 

[xanh]

I had one PM sell their rent roll. They were giving me the ****s so I was glad. However the PM that bought it weren't much chop either so eventually I went somewhere else. You'd think the buyer would want to hang on to their new customers - after all, they just paid for it.

The whole thing *should* be smooth, there *shouldn't* be any problems. However, I'm not sure there is any incentive for the seller to ensure it.

 

[JacM]

Yes I've had property managed by an agency that sold its rent roll. The staff went with it which was fine by me. Had I not been happy I would have simply shifted to a different agency.

As a risk management thing I like to be paid my rents fortnightly rather than monthly. It's the early warning system for non-paying tenants but also would minimise your losses if the agency went under.

 

[Peterw]

Yes I've had property managed by an agency that sold its rent roll. The staff went with it which was fine by me. Had I not been happy I would have simply shifted to a different agency.

As a risk management thing I like to be paid my rents fortnightly rather than monthly. It's the early warning system for non-paying tenants but also would minimise your losses if the agency went under.

Jacqui, I believe all States have a Fidelity Fund set up to reimburse people for monies lost from an agents default.

 

[russellpeter]

Its common practices for agencies to sell there rent roll.

https://www.realestatedynamics.com.au/1106

have a look at the rent rolls currently fro sale on the above link.

 

[Scott No Mates]

I had one PM sell their rent roll. They were giving me the ****s so I was glad. However the PM that bought it weren't much chop either so eventually I went somewhere else. You'd think the buyer would want to hang on to their new customers - after all, they just paid for it.

The new agent only pays for what they retain after a certain period - if everyone moves on, they pay nothing however in most cases, retention of owners is pretty high.

To mitigate the agent's risk, they look at the composition of the rent roll, how many owners, how many owned by each owner etc. If the majority are owned by a single owner the risk to the buyer is if the client walks they have paid for the privilege.

 

[xanh]

Thanks Scott. Do you know what a rough selling price would be for a rent roll with x properties? Is there a 'rule of thumb' that a PM might use?

 

[D.T.]

Its common practices for agencies to sell there rent roll.

https://www.realestatedynamics.com.au/1106

have a look at the rent rolls currently fro sale on the above link.

Quite aware of that, question was more about how clients of agency (landlords) think of it.

Thanks Scott. Do you know what a rough selling price would be for a rent roll with x properties? Is there a 'rule of thumb' that a PM might use?

Depends on the city, average rent of the properties and area of the properties. One website I saw, the rentroll prices worked out to be about $3500 per property on the roll.

 

[Scott No Mates]

Thanks Scott. Do you know what a rough selling price would be for a rent roll with x properties? Is there a 'rule of thumb' that a PM might use?

Depending upon the quality of the rent roll but around 2.75-3.75 times the commission collected.