Property Management agreement

[NewAge]

Hi Everyone,

Recently we bought 2 properties (these are our first IPs). The settlement for both are in mid-June. I did tell the REA that I will ask them to manage it.

I briefly met the property manager few weeks ago and now he has sent me some documents to sign: the REIV Exclusive Leasing and Managing Authority: Residential Property.

I would like someone to help me understand few points on this form so that I am not signing myself away.

Firstly
1. Exclusive Authority Period for Leasing : (he has put 90 days)
2. Continuing Authority Period for Leasing : (he has again put 90 days)

3. Rental: He has entered $869 per calendar month.
When I was buying the property, the same REA gave rental appraisal at $235per week. They also told me that the property would be rented in no time because of the high demand.

When this form came to me, I called the property manager. He said that the amount entered on the form is just an estimation.

I would like to your views on this before I sign the agreement.

Thanks

 

[The Y-man]

Big difference betweem $200 per week and $235 per week! One is sales dept guy talking, the other is the Management Dept guy talking - but what do YOU think it can get? (i.e. what are similar properties in the area getting?) - surely you didn't take the agent's word for it when you bought it.... (You know, same as buying a thrashed out car where it has only been driven by a little old lady once a week thing...)

How long (if at all) do you want them to have exclusive rights?

Suggest having a chat to other managers in the area (or who service the area - shop around). Get opinions form forumites - that agent might be on someone's blacklist

Which suburb/town are you properties in?

Cheers,

The Y-man

 

[nomadic]

I would like someone to help me understand few points on this form so that I am not signing myself away.

Firstly
1. Exclusive Authority Period for Leasing : (he has put 90 days)
2. Continuing Authority Period for Leasing : (he has again put 90 days)

In regards to these 2 points, i would cross out the 90 days and replace it with 30 days, then initial it. If you're not happy with their services, this will allow you to terminate the agreement quicker.

 

[kierank]

In regards to these 2 points, i would cross out the 90 days and replace it with 30 days, then initial it. If you're not happy with their services, this will allow you to terminate the agreement quicker.

I always cross out the 90 days and replace with 30 (the minimumin in Qld by law). I sacked a PM yesterday - only had to give a month's notice, not 3.

 

[tubs]

I would prefer a general agreement, not an exclusive agreement. That way if you dont think the agent is doing enough to lease your property, or you find a tenant yourself (perhaps through Wanted to Rent in your newspaper) you can do this.

We were finding it slow renting a place out, and when the RE took time off between Christmas and NY, we started ringing around other agents to find a tenant. We could only do this because we had a general, not exclusive agreement.

Tubs