Terminating Managment Agreements

[sage26]

We have a management agreement in place with an agent which requires 30 days notice to terminate. Our last tenant moved out on 25/8 and they have not located a new tenant as yet and don't seem to be in a rush to do much about it! Is there any way we can terminate the agrement immediately? In the past other agents in this situation have allowed us to terminate the agreement with no fuss (I assume because they are not losing out on any income anyway).

The property is located in Qld.

 

[Xenia]

Sage, there should be a term in there that specifies the number of weeks they have to rent a property (normally 5 to 6 weeks) if it remains vacant for longer than that specified period you have the right to cancel the agreement, in most cases....

Depends on the contract used, do not sign agreements with agents that do not use real estate institute contracts, some agents have their own contracts that are twisted in such a way that locks clients in even when the tenancy expires.

I have read one that states that it is renewed with a new lease agreement and they only way that it could get terminated was for the management agreement and the lease lapsing at the same time... ridiculous!

and the client was not happy and wanted to leave...

 

[Scoofy]

Hi Sage,

I would talk to the PM and see if they are happy to terminate immediately. They may be willing as it means they won't have to go through the hassles of organising inspections and screening new tenants. Otherwise I think you can only terminate without the required notice if they are in breach of their agreement or negligent (e.g. if you feel they take no action at all to find new tenants).

Good luck
Scoofy

 

[lura]

As the property is vacant and remains vacant - terminate it in writing asap.


Two things can happen - you get a tenant straight away - or they let you go without further tying you to your agreement - which you can getout of easily. But as you are already angry - it will serve them no good to try and hold onto you.