Unsuccesful Lease by Agent

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Property Photo

I would like to know what is the deal when an agent has problems finding a tenant and you decide to change plans? I have a property that I have had an agent unsuccessfully try to lease out now for over a month. Each time they say someone has taken it then a few days later when they are meant to sign the lease they call up to say they have decided to take another place.

So now I'm thinking of putting the place on the market for sale instead and actually go and live in it myself until it's sold and maybe do a few more renovations to it on top of the recent ones I done. I'm overseas right not so that is why I would just live in it if I came back. The agent has spent a bit of time looking for tenants, advertising etc. Would I be expected to pay them if I pull out and not need their services? I know that I would have to pay 1 weeks lease plus and advertising fee but the 1 week is for only if it is leased right?
 
I'd avoid paying anything in that scenario unless there was a definitive advertising cost....but not sure the agreement you have signed with them

The Y-man
 
There is usually nothing the agent can do in that situation but let you off for free.

Also - they will usually be very gracious about it - in the hopes that you aren't dissatisfied with them, and may try and rent/sell through their agency again in future.

If you took it off the agent and then leased it straight away through another agency, they may be able to pursue you for fees according to the agreement, but it doesn't sound like that's what you are going to do.

Just be as nice as you can about it and they should be fine.

Matt
 
mattysavager said:
If you took it off the agent and then leased it straight away through another agency, they may be able to pursue you for fees according to the agreement, but it doesn't sound like that's what you are going to do.
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Hi, thanks for the feedback so far everyone.

I'm deciding what to do now and I'm actually considering to hire another agent to see if they can have better luck at finding a tenant.

Would this mean I would have to compensate the other agent? They have been trying for over 1 month now. First they used really bad photos, the agent couldn't operate the camera when I was there. I even offered to help but I was not familiar with her camera. The flash did not work and the photos turned out terrible. They also did not advertise in RE. After several weeks and me complaining about the photos they said they would re-shoot but the new photos were just as bad or even worse. I'm actually a photographer but I had no equipment at the time and now I'm overseas. I then asked why it was not on RE and they put it up on there through a partner agent as it seems they don't use RE normally. The problem with all this though is it was about 3 weeks after they first advertised the place.

Now I'm using up my own savings I use to live overseas to pay the mortgage, I'm now at a stage where I have to get it rented within a week or two otherwise I have to come back to Aussie and work there or put the place on the market but that is not ideal right now for various reasons including another unit in the same block that is not renovated like mine and lower in price that I want is now listed. Another higher priced and more renovated one sold about 3 weeks ago which is a positive though....

Most of the prospective tenants are really no hopers with bad history but my place is middle class. I'm thinking this is because they are not a well known agency, just a one shop place, nice people but this is getting way too long now to worry about that... They found one tenant soon after the first advert but they didn't sign them up but were waiting for me to approve them, I said don't wait for me just approve them if you think they are fine. Then the tenant shopped around and found something else. In fact it has happened 3 times now that they have approved a tenant and were going to sign them at the end of the week etc when they came in but then I get the dreaded email to say the tenant decided to take another property. They asked me to lower the price but i know it is not too high, they just don't have the right way of doing this and I have told them they have a flawed service.

I told them last week if they did not have tenant by now I would have to consider doing something else. I would like to find another agency or even have two agency;s looking for me. As I'm not there then they would have to get the keys from the current agent etc.

Do you think I can find another agent now without any issues?
 
dan c said:
It depends on what your agency agreement says. Most have a notice period or something similar.
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They had a 60 day notice but i asked to have it changed to 30 days but this is only when you have already leased it and want to hire another agent as far as I know? I'm wanting to cancel hiring their service since they have not been able to lease it successfully, I think this is different from when it is already leased? Unfortunately I can't find the agreement right now but will get it later. is this right normally in NSW?
 
My thoughts after reading this thread are, why don't you call the property manager, tell them all of your concerns and tell them you are no satisfied with their service/effort and if you don't see results in the next 7 days you will be enlisting another agent to lease the property and ripping up your agreement. Obviously whether they pursue you for advertising costs or anything is going to depend on what sort of contract/agreement you signed with them, but right now you need to get them into gear and either get the place rented through this agent or have them on notice that they are sacked if you don't see results.
 
normally the PM charges would come out of the 1st lot of rent. Hence if they havent signed the tenant - no charges. But if you are trying to jump ship to another agent - as others have said would depend on your agreement and whether there is an exclusivity component to it.
 
dammit said:
My thoughts after reading this thread are, why don't you call the property manager, tell them all of your concerns and tell them you are no satisfied with their service/effort and if you don't see results in the next 7 days you will be enlisting another agent to lease the property and ripping up your agreement. Obviously whether they pursue you for advertising costs or anything is going to depend on what sort of contract/agreement you signed with them, but right now you need to get them into gear and either get the place rented through this agent or have them on notice that they are sacked if you don't see results.
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This is pretty much exactly what I did, the only difference is it was by email which is because I'm overseas and easier to do plus I have a record if ever needed.
matto_ said:
normally the PM charges would come out of the 1st lot of rent. Hence if they havent signed the tenant - no charges. But if you are trying to jump ship to another agent - as others have said would depend on your agreement and whether there is an exclusivity component to it.
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Well I think if they were going to get annoyed about it and take me to court they would have hard time I think since I gave them notice and they had many faults in their campaign which I have not even wrote of them all here.

At the end of the day I have a property to lease, they are not able to do that and the reason I hired them, 5 weeks on....
 
You want the property leased first of all, other considerations about whether the current PM is entitled to some money, whether they should have done better all come a distant second.

I would be researching other managers asap with a view to giving them the property and having it marketed and leased properly... and fast.
 
Andrew_A said:
You want the property leased first of all, other considerations about whether the current PM is entitled to some money, whether they should have done better all come a distant second.

I would be researching other managers asap with a view to giving them the property and having it marketed and leased properly... and fast.
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That sounds like good advice.. In fact I just signed up a new agent ;)
 
I just thought I would update this... about 2 days after I hired a new agent they found a tenant, a good one too. Goes to show that if one agent is not able to help you need to move on fast, I left it way too long.
 
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