Property managers can be sacked easily when underperforming
- 1.Common Questions from Landlords (Part 1)
- 2.Common Landlord Questions (Part 2)
- 3.Property Manager vs Leasing Agent…. What’s the Difference?
- 4.2017 Budget Changes for DIY Property Managers
- 5.The End is Near for ‘Dodgy’ Property Managers
- 6.Renters warned of current SCAM
- 7.Property managers can be sacked easily when underperforming
- 8.Finding Great Tenants (& keeping them!)
BREAKING up is hard to do, but not when severing ties with an under-performing property manager.
Originally published on www.news.com.au Written by Tim McIntyre for News Corp Australia Network
Property Asset Property Management’s Senior Property Manager, Vera Pasquini, came across this article published on www.news.com.au in July. “As a Property Manager, I hear many client experiences with different agencies and managers on a regular basis” she said.
“I find it unthinkable that clients are sometimes treated so poorly – especially considering that an Investment Property is usually a client’s largest asset other than their home” Vera says.
When Vera read this article, it resonated with her as she hears stories like this from clients who are looking at moving their property management of their investment property from their current agency.
We hope that in reading this article that none of the experiences of Tim McIntyre (the writer) resonate with you…. if they do – then it may be time to look elsewhere for your property management.
Last week, I decided I had finally had enough of the agency managing my rental property.
It had been roughly two years, without incident, until our long term tenants vacated and moved overseas.
For the next couple of months, our property managers conducted inspections, telling me the property was in good shape, well priced and sure to attract plenty of tenants.
What they did not bother to mention, was that the paint was chipped on the walls, the carpet filthy and stained and the toilet cistern discoloured and desperately in need of replacement.
After a couple of weeks of unsuccessful viewings, one agent casually mentioned that the lack of interest may have been due to the shabby state of the furniture.
“The furniture?” was my reaction. It turned out the former tenants had left their clutter behind when vacating and the property managers did not realise the place was not supposed to be furnished.
The unit remained full of tattered couch and chairs, old damaged fridge and even drawers full of old stained cutlery.
This was the final straw. I contacted the agents who had the listing back when we bought it — they had been very professional — and asked if they also did property management. They informed me that I just needed to notify the current agent in writing and they would take care of the rest.
So, I simply emailed them and let them know I was terminating the agreement. They did not object. (* see footnote)
Friends suggested I manage the property myself, but as ME head of home loans Patrick Nolan claims, there is more work involved than meets the eye.
“There are legal obligations to comply with, like lodging the rental bond on time with the appropriate statutory authority … and accurately completing the lease agreement,” Mr Nolan said, adding that rent collection and legally sound inspections were complicated without representation.
“Property managers also organise minor repairs,” Mr Nolan said. “This may not seem overly challenging until the tenant calls late at night to say the stove isn’t working, or you’re left trying to call out a plumber on a weekend.
“Most importantly, a property manager will represent you in all dealings with the tenant. The vast majority of tenants pay rent on time. But if they don’t, landlords can’t simply go knocking for their money — strict legal provisions apply.”
Property managers also make tax time easier, with single statements in place of the paperwork a DIY investor would need to compile.
Before providing your termination notice to your current Property Management Agency, it is recommended that you review your existing Rental Management Agreement (RMA). The RMA will advise you the notice period you must provide. Failure to provide the required notice when terminating may incur fees by your existing agency.
RMA’s have a term / duration for which you are contracted. It is of the utmost importance that you are aware of your term and expiry date. Many RMA’s stipulate that unless prior notification is received, it will automatically renew for the same period at expiry.
Property Asset Property Management strongly advocates that you abide by all terms and conditions of your current RMA.
If you require assistance in reviewing and understanding your RMA, we can assist you with this as a complimentary service
(provided at your request)