When do PM's start looking for new tenants?

[SkyIsTheLimit]

The tenants in our property are our first ever tenants, so we are still learning the ropes.
Their lease expires mid September, and I was just wondering when should the PM start looking for new tenants, if the current ones decide to go? Should I also expect the PM to ring me and let me know that time is coming and keep me informed of the situation?

And just wanted to mention that this forum is a god send for us! We have learnt alot from it, and hope to keep learning

 

[Aaron_C]

You should arrange inspections ASAP. Probably 2-3 weeks prior to the lease expiring - usually as a landlord you are allowed property inspections to show new tenants through.

 

[Sez]

It depends on your state, why not give your property manager a call?

For example, in VIC if a tenants lease expires and they don't sign onto a new one they automatically go onto a periodic (or month to month) lease, no problems. If the tenant is leaving they are required to give 28 days written notice of their intention to vacate. According to the act in VIC we are only allowed to show people through on inspections during the tenants last 2 weeks of occupancy. We start advertising from the day we get the notice to generate interest prior to opens and we can often negotiate an open for inspection prior to their final 2 weeks in the property.

Procedures vary but I think your PM will happily forgive you if you just call to ask about the process and what you should expect .

 

[travelbug]

You should arrange inspections ASAP. Probably 2-3 weeks prior to the lease expiring - usually as a landlord you are allowed property inspections to show new tenants through.

Why? They don't know that the tenants are leaving? That would be a bit weird if they haven't made any indication of moving. Maybe a month before ask if they are willing to sign a new lease. That will let you know if they are considering leaving.

I've never had anyone move out after the lease expired. Some signed new ones. Most just continued on periodic lease.

 

[jaycee]

Why? They don't know that the tenants are leaving? That would be a bit weird if they haven't made any indication of moving. Maybe a month before ask if they are willing to sign a new lease. That will let you know if they are considering leaving.

I've never had anyone move out after the lease expired. Some signed new ones. Most just continued on periodic lease.

Part of may invovle ringing the tenant & asking... the PM should be doing as well I think...


My first suggestion would be to ring the PM or email them or whatever and ask them what they are going to do now the lease is about to expire...

 

[Aaron_C]

Why? They don't know that the tenants are leaving? That would be a bit weird if they haven't made any indication of moving. Maybe a month before ask if they are willing to sign a new lease. That will let you know if they are considering leaving.

I've never had anyone move out after the lease expired. Some signed new ones. Most just continued on periodic lease.

If the tenants do not want to renew their lease and are going to move then obviously you arrange inspections for new tenants....

 

[jaycee]

If the tenants do not want to renew their lease and are going to move then obviously you arrange inspections for new tenants....

that's what I as thinking .. you have to approach the teant to find out . if they do want to move, I'd expect the PM to start advertising with intention of trying to get a new tenant as close to the day the current ones are leaving (within reason)..

 

[travelbug]

If the tenants do not want to renew their lease and are going to move then obviously you arrange inspections for new tenants....

Well obviously. But you said "You should arrange inspections ASAP".

so to the OP find out IF they intend to move THEN if they are moving get the agent to start advertising and put a date available on the ad.

Most people don't move every 12 months so I wouldn't panic.

 

[Ed Barton]

The tenants in our property are our first ever tenants, so we are still learning the ropes.
Their lease expires mid September, and I was just wondering when should the PM start looking for new tenants, if the current ones decide to go? Should I also expect the PM to ring me and let me know that time is coming and keep me informed of the situation?

And just wanted to mention that this forum is a god send for us! We have learnt alot from it, and hope to keep learning

pms starting looking for tenants when you start whining. the pm should be doing their best to lock the current tenant into another lease asap.

don't expect anything from the pm.

 

[ACTInvestor]

I get an email 9 weeks before the lease is due to expire (we have to give 8 weeks notice to tenant in ACT for a rent rise) from my PM asking my intentions for the property - they tell me what the market is doing and the rental value of my property. I then tell them if I want to renew, at what price etc and then they tell the tenant my intentions and ask them what they intend on doing. I would be pretty disappointed in my PM if I didn't know my tenants intentions and didn't have the opportunity for a rate rise well before the lease was due to expire.

 

[SkyIsTheLimit]

they tell me what the market is doing and the rental value of my property. I then tell them if I want to renew, at what price etc and then they tell the tenant my intentions and ask them what they intend on doing. I would be pretty disappointed in my PM if I didn't know my tenants intentions and didn't have the opportunity for a rate rise well before the lease was due to expire.

Hit the nail right on the head there I'd be upset too if my PM never gave me the chance to increase the rent, or even just to keep us in the loop on the market.

Thanks for the help everyone! I have a better idea on what to expect now. My biggest fear is to have the PM leave everything to the last minute. So I can relax for now, its a bit early, by the sounds of your replies. I'll definately call the PM, I just wanted to get a clearer idea on what was "normal".

 

[Jamie M]

I get an email 9 weeks before the lease is due to expire (we have to give 8 weeks notice to tenant in ACT for a rent rise) from my PM asking my intentions for the property - they tell me what the market is doing and the rental value of my property. I then tell them if I want to renew, at what price etc and then they tell the tenant my intentions and ask them what they intend on doing. I would be pretty disappointed in my PM if I didn't know my tenants intentions and didn't have the opportunity for a rate rise well before the lease was due to expire.

Hi ACTInvestor

I like the sound of this PM. Are they based in Canberra?

Cheers

Jamie

 

[Whozat]

A good PM should have contacted you well in advance to ascertain what your intentions are with your property. Best (and preferred) early contact I am given is three months before end of lease. An email advising market conditions, recommended rent amount on a continuing lease, and asking whether I want to terminate or continue the current tenancy agreement. This allows the PM sufficient time to get a new lease offer in the mail to the tenant, or to issue a notice to vacate if you want to terminate the current tenancy agreement at the end of the lease.

The PM won't be able to start advertising until they know if the tenant is staying or going. As it seems to be now less than 2 months till end of lease, unless the tenant has signed a new lease, or formally advised their intention to vacate at end of lease, then they will only need to give 2 weeks notice that they intend to leave either at the end of the lease, or later if they choose to roll over to periodic tenancy. So the PM may be limited by how early they can advertise. Ideally the tenants will be 'generous' in giving more than the minimum two weeks notice to vacate, if that is their intention. In such a case the PM may be able to facilitate that (more than 2 weeks notice) if they have an informal chat with the tenants.

 

[Don K]

Hi ACTInvestor

I like the sound of this PM. Are they based in Canberra?

Cheers

Jamie

I like the sound of this too.

Anyway if you go for periodical what would happen in terms of LL insurance? If tenants disappear leaving a mess and you need more than a month to get you IP rentable? LL insurance generally will only cover rent loss of XX weeks or until lease expiry date whichever the earliest right? Better not to go with periodical or am I wrong?

 

[damacc]

I get an email 9 weeks before the lease is due to expire (we have to give 8 weeks notice to tenant in ACT for a rent rise) from my PM asking my intentions for the property - they tell me what the market is doing and the rental value of my property. I then tell them if I want to renew, at what price etc and then they tell the tenant my intentions and ask them what they intend on doing. I would be pretty disappointed in my PM if I didn't know my tenants intentions and didn't have the opportunity for a rate rise well before the lease was due to expire.

In QLD it is 2 months notice for a rate rise. I set up a task in Outlook to notify me about 2 1/2 months in advance when the lease is due to expire. Any good property manager will forward a letter to you asking what your intentions are. For the other ones I contact them usually by email asking them whether a rent increase is possible and for how much.

 

[jaycee]

I like the sound of this too.

Anyway if you go for periodical what would happen in terms of LL insurance? If tenants disappear leaving a mess and you need more than a month to get you IP rentable? LL insurance generally will only cover rent loss of XX weeks or until lease expiry date whichever the earliest right? Better not to go with periodical or am I wrong?

Depends on your landlord insurance... Mine will cover if a tenant on a fixed term lease goes periodic, but from what others have siad here others will not.

 

[Sez]

Depends on your landlord insurance... Mine will cover if a tenant on a fixed term lease goes periodic, but from what others have siad here others will not.

A lot of bank insurance policies will not cover you if the lease is periodic, best to check your policy and perhaps change insurers! In VIC you can not force a tenant to sign onto another fixed term lease and so it is a little unfair that insurance agencies will not cover you if the tenant's lease is periodic .

 

[jaycee]

A lot of bank insurance policies will not cover you if the lease is periodic, best to check your policy and perhaps change insurers! In VIC you can not force a tenant to sign onto another fixed term lease and so it is a little unfair that insurance agencies will not cover you if the tenant's lease is periodic .

Sez,

WHAT "bank insurance" policies are you talking about ?

 

[Sez]

Sorry Jaycee,

Often when taking out your mortgage with a bank they will offer their renting insurance policies, in the past when reviewing landlord insurance policies I have found that the rental insurance policies offered by the banks (CBA, ANZ St George etc.) are the ones more likely to not cover a landlord if the tenant is on a periodic lease.

I wrote my previous comment in haste and didn't explain too well!!

 

[jaycee]

Sorry Jaycee,

Often when taking out your mortgage with a bank they will offer their renting insurance policies, in the past when reviewing landlord insurance policies I have found that the rental insurance policies offered by the banks (CBA, ANZ St George etc.) are the ones more likely to not cover a landlord if the tenant is on a periodic lease.

I wrote my previous comment in haste and didn't explain too well!!

No probs Sez.. Good to know... Periodic leases are difficult to avoid sometimes, dont like the sound of those bank Landlord policies, but then again, if I read the fine print of mine, I might find a things I'm not happy about too