Property Management Contract

Hi all,

My contract with the property manager has expired on 31st of March. But the tenant has extended the contract to rent the property until March next year. I haven't received any renewal from the PM for my contract with her to manage the property.

Is it something that automatically extended when the tenant extended their lease? Should I receive a contract renewal? I haven't signed contract renewal either. The property is in WA.

I haven't contacted the PM yet. I just want to know first if it is normal or not.

Thanks.
Tim
 
Yes - they continue managing on a periodic contract until given the appropriate notice to not.

The fixed term agreement is the only thing that has expired. Most agencies do not renew for another fixed term.
 
Thanks for quick reply. Just to confirm, so normally there is only one contract to sign with PM then it will be renewed on periodic basis until I or PM terminate the contract.

Would that be the case? Sorry if it is obvious, it is my first IP.
 
Thanks for quick reply. Just to confirm, so normally there is only one contract to sign with PM then it will be renewed on periodic basis until I or PM terminate the contract.

Would that be the case? Sorry if it is obvious, it is my first IP.

Hi Eastpack

yes you are spot on correct.

The amount of time required to end the contract is 60 to 90 days written notice - should state it in the contract.

most agency agreements will default to periodic after end of fixed term and will just continue until ended.
 
Thanks for quick reply. Just to confirm, so normally there is only one contract to sign with PM then it will be renewed on periodic basis until I or PM terminate the contract.

Would that be the case? Sorry if it is obvious, it is my first IP.

It's worth noting that it isn't actually renewed per se, as in you typically don't sign another one.

If you review the contract you'll find it says something along the lines of "X yrs and then periodically from there", ie the existing one just continues unless you enter another contract which supersedes it.
 
As mentioned above, the standard REIWA management contract allows the agreement to continue until either party gives 28 days written notice.
I'm surprised that they haven't followed it up, as they tend to put some value on having their owners bound to them for the long term.
 
The amount of time required to end the contract is 60 to 90 days written notice

the standard REIWA management contract allows the agreement to continue until either party gives 28 days written notice.

And when you terminate this PM and contract, with the next MAA this is the first clause you should amend in you favour and not the PM's.

This is one thing I picked up early on when researching the do's and don't of PM selection and negotiating a management contract. I have a 14 day clause which I just exercised for the first time in 5 years and have the same in my new MAA even though the new PM was reluctant but if they want the property they need to have faith in their ability to deliver therefore the clause should not need to be exercised.

28 or 60 or 90 days is just BS and there is no sound reason why they should have such a timeframe when usually change only occurs due to a failure of the PM to provide a quality service.
 
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