Switching from PM to self managed

[bricman]

Hi

I have an IP in Penrith and i wish to sign the tenants up myself after their lease expires with the rental agency and self manage the property as the tenants are excellent and i will be living close by for any repair or maintenance issues.

When their lease expires with the rental agency how do i transfer/switch them to sign a private lease with me? and what happens to the bond? I have eben stressing about this and is not an easy subject to discuss with PM's.

Lease expires on 12/11/11 so have a little time to play with, has anyone had experience in this and what is the best approach?

Suggestions are most welcome.

 

[Propertunity]

Have a read of the agency agreement you have with your PM. It will have a method and time for terminating the agreement. Typically in writing and 90 days - but you may have changed it to 30 days or 0 days.

So terminate the PM agreement. Advise the tenants of your bank details so they can put rent money in there.

The bond will stay with the Rental Bond Board.

My strong suggestion is that you read and understand the RTA since it seems you don't know even the most basic stuff.

All the best with it.

 

[bricman]

Sound advice, will read the Residential Tenancies Act 2010
and make up my mind.

Normally would use an agent, but we know our tenants and they have
looked after our property like it was their own.

Thank you

Ian

 

[mattysavager]

Hi Ian.

I can only speak to the process in QLD, but it's mostly the same.

I would read your management agreement with the agency to find out the notice period. At my office it's 90 days, most are.

If you are on good terms with the agent they will hand over all the tenant's details, application forms, ledger and as much correspondence as they have. It's good to have these things if the tenant/landlord relationship should head south. (things like their drivers licence numbers won't' be on a lease but you might need that info).

Get a copy of any photos from the entry report so you can do an exit report when the tenants leave.

The Bond will remain with the Rental Bond Authority (don't know the NSW acronym) but you will need to lodge a form to inform the Bond people that you are the new manager, otherwise they will not be able to deal with you due to confidentiality. The agent will need to sign over this power so ask them for this.

Make sure you are onto the tenants about changing their rent payments. Tenants can be slow on the uptake and this will often get forgotten.

PLEASE have the smoke alarms maintained by a registered third party company so you can't be jailed if the tenants take them down or put glad-wrap on them and there is a fire. If you are responsible for the checking, then you bear the burden.

Change your utilities, land tax and any bills that are addressed to the agent so you don't get fined.

Inform the Body Corporate if it's a unit.

As for the lease, the current lease is between you AND the agency, and the tenant, so they shouldn't need to sign a new lease. I'd just send out the new lease when it comes due with your name and contact info on it so they know who to deal with.

AND Read the act and study up on the rules so you don't inadvertently breach the contract and open up a can of worms. Most people think PMs just sit around and collect rent but there are laws constantly changing and the finer points of the RTA laws that we know. The more you can absorb, the easier it will be.

Hope this helps