Property manager accepted tenants application without informing the landlords?

[FelixL]

Hi All,

I have just rented out my IP and become a landlord for the first time.

However, I never received any rental applications from the property manager, he just signed them up on behalf of us, and he didn't inform us straight away. It's only today when I ranged to inform him a quantity surveyor will be inspecting the property, then he said that tenants are moving in tomorrow! The PM said he has done reference checks and stuff and the tenants are good.

Just wondering, is this the normal way an IP is rented out using a PM?

 

[Raddles]

HI there
our PM normally gets a general authority to accept a new tenant.
The only time we were approached for an approval was when the tenant (American embassy) wanted a long term lease - and wanted to regulate the terms of the rental agreement - basically limiting our ability to raise the rent.
We were given the opportunity to say no in the circumstances - which we did because of a provision in our insurance which declined liability for acts of terror - and because the embassy refused to indemnify us if the property was damaged.
thanks

 

[FelixL]

Thanks Riddles, that make me feel a lot less nervous

Its just that when I was renting the agent always say to submit application to the landlords, so just assume the landlord always gets to review the application.

 

[twobobsworth]

Some will ring you, some won't. At the end of the day it doesn't really matter unless you have specific conditions you want to add to a lease or think the rent needs raising. Don't worry about it. Just diarise the lease expiry so a month out you can contact the PM and find out what the tenants are doing and maybe raise the rent.

 

[FelixL]

yeah, I should be more relaxed about it. I guess being the first time, anything that didn't go the same way as I thought it would, I fear I've made a mistake somewhere...

 

[splade]

my pm filters the applications. does the checks on the short list of applications and then lets me know the general info about the applicants on the short list and gives me his recomendation. the final say about who will be living in my property is me, and that is how i like it.

 

[JoannaK]

you will need to educate your PM on how you want your property managed. Each property manager works differently; some will communicate more than others.

 

[alexlee]

I've had a mix as well from my PMs. They don't always tell me, but to be honest I'm not too worried about it either.
Alex

 

[Rixter]

My WA based PMs will contact me and run through who's applied and recommend in their eye who is the best.

My Qld based PMs just put them in after they've done and are satisfied with all the required checks.

 

[flatout]

Our PM shortlist those applicants she thinks are suitable, then rings us to run through their details and provide her recommendation. In the end we have the final say but our PM does the leg-work which is exactly what we're her for.

Flatout

 

[KEISHA]

It's Up To You

All of ours do. I think they should. No-one looks after your interests or property like you.

We also get weekly reports on how many inspections, phone calls, emails, internet inspections and the feedback. It really allows us to monitor if we need to do anything with the property or the price either now or in the future.

 

[Xenia]

The letting and management agreement gives PM the rights to act on your behalf. In our office we ring landlords out of courtesy and if there are multiple qualified applications the landlord is the one that chooses the tenant.

If we can't get hold of the landlord, then we offer the lease to the tenant, I would rather do this than take a risk of losing a good tenant and cost the landlord more in vacancies due to not being able to make a quick descision.

 

[BV]

Our PM's always inform us of the applicants they have and they make suggestions.
On occasions it does happen that we disagree on the suitability of a tenant
but it's our call.
It's better like that as the PM can't get blamed for choosing 1 tenant over another
or for choosing the wrong one.
Cheers

 

[kingchevy]

My property managers always give me the say after all the filtering process and I have have to admit would find it rather annoying and strange if my pm chose for me but then I tend to be a control freak

 

[crest133]

The PM should be able to make the tenant vetting decisions without you because you should have already made your wishes clear and should then leave the PM to get on with the job as instructed.
PM should be told :
how long you want the lease fixed
pets or not
how many people
rent level
any special item protection clauses in lease like maintaining gardens, garage floor oil stains, pool maintenance ( lose the pool ), etc.


cheers
crest133

 

[dags]

I wouldnt let anyone rent out one of our properties without checking the application out myself.
Our PM called us with "excellent tenant" has applied, and upon further investigation on my part they had
lied that they were Uncle and neice(truth-they were a couple)
lied about their income 145k combined per annum( truth-80k per annum)

so now we ask for
proof of income
proof of id
credit checks
tenancy history.
as a bare minimum

Also our PM recommended rent at $290 per week. I advertised the place at $310 per week and had 20 people visit on the first open for inspection and was rented within a week of advertisement.

dags

 

[twobobsworth]

I hope you aren't paying for your PM?

 

[Bombtrack]

Nonsense, the PM should always call you first and let you know about the application.

Once receiving an application, they should reference check it and phone you and go through it in detail with you. If they have 6 or 7 applications, it's fair enough that they don't reference check all of them, whichever one you think is best they will reference check that one and provided it comes out fine, they will be the successful applicant.

It is your investment property, and it should be your say.