Rescinding a rental application after accepting

[lovestruck]

Has the agent signed a lease agreement on your behalf?

If so, and you are unable to settle, or settle late (and after the tenants are supposed to move in), what is your back-up plan with regard to your legally binding agreement to house the tenants from that date?

Or were you smart and made the lease agreement subject to settlement happening?

I'll need to double check this tomorrow, good point I missed this!

Lots to learn here it seems

 

[Perp]

I just want to know the best way to fix this issue now, is it to offer them a large lump sum decrease to move in earlier, or a smaller weekly decrease or move in earlier? Sounds to me like you guys are recommending the bigger lump sum discount offer, something which I hadn't thought of earlier.

I doubt either will make any difference, because the date probably has some significance to them, i.e. when their other lease is finishing. But if it is to make a difference, I agree with a larger short-term decrease. That way your rent at the end of the lease period is at a higher "starting point" for negotiating the next lease.

Reading your experiences I think another lesson learnt is to be really more careful in vetting property managers and basically micromanaging them and being extremely clear with commmunication so that both sides are on the same page. Basically they should just be your 'puppet' and you directing absolutely everything.

Or... you can learn not to sweat the small stuff. I prefer to select a property manager who's competent and that I trust, give them clear written instructions if I have specific non-standard requests, and try to be "hands off". It has bitten me in the past, but not for several years now. I guess it depends on your personality type. I'd hate to feel like I had to micromanage like that; it would suck the life out of me. May as well self-manage if you're going to be involved at that level of detail.

 

[wylie]

Reading your experiences I think another lesson learnt is to be really more careful in vetting property managers and basically micromanaging them and being extremely clear with commmunication so that both sides are on the same page. Basically they should just be your 'puppet' and you directing absolutely everything.

We self manage, but had no option with this situation that developed as the "rent before settlement" was part of the contract. There was no communication with the rental side of things, other than that we signed an agreement allowing the PM to find a tenant. We had no reason to assume the PM would be asking the opinion for choosing the weekly rent from the purchaser. He was not party to the agreement to lease the house. NOT HAPPY JAN!

Mind you, the whole selling experienced turned into a nightmare... but that is another story and more to do with the slippery purchaser than the selling agent, who was great. Luckily it all ended well, but I have a few extra grey hairs over it.

I never have these issues when I am the PM. No PM could look after our properties like I do .

 

[WattleIdo]

Sounds like you could be mucking a lot of people around.
Hopefully you haven't yet insulted your future tenant with your $5-$10 deal. Hopefully you didn't argue with your property manager about whether or not you agreed to a 12 month lease.
Take a deep breath ... how do you feel? Scared? Anxious?
Just chillax you've already done all the hard work.

 

[neK]

Like others said, don't sweat over such small items.

You're about to settle and you got a tenant lined up to move in within 2 weeks of settlement.

Thats a pretty good position to be in.

As for asking questions to change this and change that, my recommendation is to leave it. If you can't articulate to people who invest in investment property what you are trying to achieve, you have very little chance in getting a clear message to those who don't have a remote clue - ie the tenant (don't mess around with that reduction in rent to move in two weeks earlier, then jack the rent back up blah blah blah - too confusing).

Confusion = difficulty = go elsewhere

Thats the last thing you want. 2 weeks vacancy is small in the scheme of things.

Don't worry about the 1 year lease, the worse time to be vacant is from 2nd week of December, because if you miss the first week, you're in the lead up to xmas new year. No one wants to do anything then.

If your tenants decide to move out after 1 year, it would be mid winter, aint that bad. As long as your house is nice and warm

 

[lovestruck]

It's a bit surprising that you guys wouldn't sweat 2 weeks worth of rent, but now looking at it in hindsight even if I waited I may not have gotten any other tenants who would be able to move in earlier anyway. I guess it's a good lesson to learn on my end, to be more communicative with the PM, especially with the bigger decisions.

Thanks for the support (and the flames ) I've learnt a lot already

 

[ZachAnSel]

It's a bit surprising that you guys wouldn't sweat 2 weeks worth of rent, but now looking at it in hindsight even if I waited I may not have gotten any other tenants who would be able to move in earlier anyway. I guess it's a good lesson to learn on my end, to be more communicative with the PM, especially with the bigger decisions.

Thanks for the support (and the flames ) I've learnt a lot already

Lovestruck,
We always arrange spare few days-1 week after settlement.
We learn the settlement dont always happens on that day. Especially thursday or friday, there always problems when so many parties involve.

From this thread, i reckon the best suggestion is contact your pm and see if your tenant can move early. If not, perhaps you can arrange some other activity such as depreciation, improvement, etc

7 months is unusual for lease terms. Actually when you said 12 months, means you can see the "7 months" rent market condition and suit your strategy. Wether you can increase or keep current rent. That's plenty of time

 

[lovestruck]

I have another question guys, if a property manager consistently refuses to answer their phone and is poor with email communication, would that be a good enough reason to change to someone different? They've just blatantly stated that will deliberately not answer phone calls and that they prefer email, but never put enough information in the email and are not timely with email replies.

I always thought that in communicating with PM would involve both email for the minor decisions and phone calls and email for the major decisions? Additionally I always would have thought that with a good PM you would have a chance to have a chat with them once in a while regarding market conditions and rental appraisals etc.

 

[Bantam Roosta]

I would expect phone contact on an as required basis. It is often easier (and quicker) to discuss issues in a conversation then stop-start written communications.

Get a hold of the senior property manager, outline your concerns and see if you can come to an agreement that serves you both. If an agreement cannot be reached then find yourself a PM that you are happy with.

BR

 

[Perp]

I always thought that in communicating with PM would involve both email for the minor decisions and phone calls and email for the major decisions?

It's really a matter of personal preference. I hate my PM phoning me, and would far prefer them to email, as 1) I have a written record, and 2) I can respond at a time that's convenient to me, rather than being interrupted at a time that suits them.

But ultimately, you have to find a PM that is willing to work in a way that suits both parties, and if they're not, of course you're entitled to change.

Additionally I always would have thought that with a good PM you would have a chance to have a chat with them once in a while regarding market conditions and rental appraisals etc.

Isn't it the case that you haven't even had your first tenant move in yet?

 

[lovestruck]

Yeah, it's an agency that was recommended by the forum and post here a little bit as well. I'm not sure how they get the positive feedback, but I guess the principal answers his phone quite quickly, but the business development manager and mainly senior property manager are virtually uncontactable by phone. I don't even expect the phone call to be returned the same day, but even after several days there will be no contact. I will try ringing again tomorrow. I'm not sure if it's just me or them. I don't think I'm being demanding, I'm never rude to them on the phone?

 

[lovestruck]

It's really a matter of personal preference. I hate my PM phoning me, and would far prefer them to email, as 1) I have a written record, and 2) I can respond at a time that's convenient to me, rather than being interrupted at a time that suits them.

But ultimately, you have to find a PM that is willing to work in a way that suits both parties, and if they're not, of course you're entitled to change.

Isn't it the case that you haven't even had your first tenant move in yet?

Yeah the tenants will be moving in 2 weeks after settlement. But I just wanted to ask them about a response regarding my offer to the tenants and also how we are going to communicate with each other moving forward because this property will be a long term hold so I need to have someone who I can work with.

Additionally we came to a verbal agreement of a 7 month lease with the principal, but when the actual PM came in, she started the tenants on a 12 month lease without informing me by email. But she is denying this and saying that it was my instruction by email? I read through her and my emails and could not find any mention of any lease period. Thankfully it has worked out this time as the lease will still end at a peak rental period next year, but I don't want a repeat of this happening in the future.

 

[Bantam Roosta]

If your PM is someone who contributes on this forum, airing your dirty laundry before you have discussed the matter with them is probably not the best way to go about it.

Send them an email. Tell them you have been finding it difficult to get in contact with them and would like to discuss a few issues with them via phone. If you have to, book an appointment for this to occur. Then, have a discussion about each other's expectations and go from there.

If you don't get it sorted out soon, the relationship will become irreparable because you will spin yourself into a tizz and will develop a sub-conscious dislike for their operations, regardless of their actual performance in the future.

BR

 

[lovestruck]

If your PM is someone who contributes on this forum, airing your dirty laundry before you have discussed the matter with them is probably not the best way to go about it.

Send them an email. Tell them you have been finding it difficult to get in contact with them and would like to discuss a few issues with them via phone. If you have to, book an appointment for this to occur. Then, have a discussion about each other's expectations and go from there.

If you don't get it sorted out soon, the relationship will become irreparable because you will spin yourself into a tizz and will develop a sub-conscious dislike for their operations, regardless of their actual performance in the future.

BR

Yeah, I was debating whether to put it on the forum, but I feel like I just need some advice on how to deal with the situation because I don't have anyone else to ask and it is stressing me out a bit.

The problem with emailing them is that they don't always reply in a timely manner, only when the principal is cc'd in or they are defending themselves they will reply quite quickly otherwise nothing.

I will contact them by phone first thing tomorrow morning

 

[Terry_w]

I have another question guys, if a property manager consistently refuses to answer their phone and is poor with email communication, would that be a good enough reason to change to someone different? They've just blatantly stated that will deliberately not answer phone calls and that they prefer email, but never put enough information in the email and are not timely with email replies.

I always thought that in communicating with PM would involve both email for the minor decisions and phone calls and email for the major decisions? Additionally I always would have thought that with a good PM you would have a chance to have a chat with them once in a while regarding market conditions and rental appraisals etc.

What does your contract say?

 

[Perp]

I'm not sure if it's just me or them. I don't think I'm being demanding, I'm never rude to them on the phone?

To be brutally honest but I hope polite, you do come across as a bit high maintenance just from your actions. They get you a longer term tenant than you say you asked for and you're not happy with that, and you also got upset about the tenants not moving in until 2 weeks after settlement (which is well within what I'd expect). Both these things, if I were your PM, would be setting off alarm bells, and I'd be avoiding returning your calls. (Not that this excuses them if that's what they are doing.)

Yeah the tenants will be moving in 2 weeks after settlement. But I just wanted to ask them about a response regarding my offer to the tenants

They knew - as we knew - that the chance of the tenants accepting that "offer" were a snowball's chance in that really hot place. The chance of it is so remote that it doesn't seem worth communicating about; a bit like ringing you every day to tell you the house hasn't burned down.

and also how we are going to communicate with each other moving forward because this property will be a long term hold so I need to have someone who I can work with.

I suspect they're really hoping you'll terminate them. Not returning your calls may be a deliberate strategy.

 

[lovestruck]

To be brutally honest but I hope polite, you do come across as a bit high maintenance just from your actions. They get you a longer term tenant than you say you asked for and you're not happy with that, and you also got upset about the tenants not moving in until 2 weeks after settlement (which is well within what I'd expect). Both these things, if I were your PM, would be setting off alarm bells, and I'd be avoiding returning your calls. (Not that this excuses them if that's what they are doing.)

They knew - as we knew - that the chance of the tenants accepting that "offer" were a snowball's chance in that really hot place. The chance of it is so remote that it doesn't seem worth communicating about; a bit like ringing you every day to tell you the house hasn't burned down.

I suspect they're really hoping you'll terminate them. Not returning your calls may be a deliberate strategy.

Well if that's the case maybe I should just wait out this initial period until settlement finishes and the tenant moves in. I did consider previously that it was their deliberate strategy to avoid me to tell me to go away. I just didn't think it would actually be happening.

With the lease length matter it's not the mistake itself I'm concerned about, it's the fact that such a mistake was even possible.

 

[lovestruck]

What does your contract say?

It doesn't have anything their regarding communication

 

[Perp]

Well if that's the case maybe I should just wait out this initial period until settlement finishes and the tenant moves in. I did consider previously that it was their deliberate strategy to avoid me to tell me to go away. I just didn't think it would actually be happening.

With the lease length matter it's not the mistake itself I'm concerned about, it's the fact that such a mistake was even possible.

I think leaving it a bit is a better plan than phoning first thing in the morning.

As for mistakes, yes, they'll happen, as with any system which requires human involvement.

You have to learn which ones you can let go, and which ones are worth ******* off the people caring for your valuable asset.

 

[Bantam Roosta]

It doesn't have anything their regarding communication

I think he means regarding terminating your agreement.

BR