Take over from Property Manager

[SliderC]

Hi All,
Ive got one property which I have had managed for 2 yrs and another which Ive bought with a tenant in place both of which are coming up for renewal.

Im really tempted to manage these properties myself as the existing tenants are great and they are local to my area.

I was wondering if there are any issues with ceasing my property management with my current agents and taking over with the same tenants in place?

Like a finders fee style situation?

Has anyone been through this themselves? ie. Taking over but keeping the tenants?

 

[C-mac]

Hi Slider - yes I have; though I'd actually owned the property for twelve months already. So, I'd initially bought it, and it had a long term tenant who wanted to stay on (being managed already by the incumbent agency appointed, at the time of my purchase).

I kept the existing agent on for 12 months;and then looked to move to a direct model with my tenant.

It would well; as it came at a time when I was reviewing rental increases with the tenant regardless (She was paying below median/market rate already for the property), yet my agent was charging almost 8% in fees (high, for my state).

So, I considered appointing a new agency but thought for this particular property/situation it was smarter to offer the tenant a deal: I refrain from increasing her rent for another 12 months, if we do a direct lease contract and submit it to the Tribunal accordingly.

This has worked well for both parties. Tenant gets to keep a neat rate for another year, is great quality, and for me, though I didn't get additional revenue; I saved 8% in fees (plus sundries, postage etc. each month), and formed a great 'direct' relationship. The dividend here is easier access for me to tend to small property issues myself. Unless it's electrical or involved plumbing, I don't appoint a tradie; I do it myself for the tenant, saving further $$$.

Doesn't work for everyone, and I certainly wouldn't recommend this approach ordinarily (all my other portfolio properties are strictly agent-managed), but on occasion can be symbiotically beneficial/rewarding option.