We have an IP available in market for a month. We feel that the current agent is not active enough. Another agent called offer their service. But by contract,we have to give notice to the current agent. The new agent told us that the contract is effective only when tenant moves in. They said we can have two agents looking for tenants at the same time. Who got tenant has the right to manage property. I asked if it is legal. The new agents say they don't advise anything that is illigal. Is this true? Advice please?
You will have to see what you agreed to with the original agent. Did you sign a contract of some sort?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Or change the asking price.
It is often more cost effective in the long run to drop a few bucks rather than extending your period of vacancy.
Drop $10 and lose $520 over the course of the year – how many weeks vacant before you lose $520?
Generally that is correct. In most cases they will only have control if you signed a long term sole agency agreement. This is unlikely. The only reason a property will not rent out comes down to price. I suggest you look at other properties in the area and see what there asking rents are like compared to yours.
Nigel Kibel | Property Know How
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What are the vacancy rates like in the area?
Like Derek said, the main factor that keeps a property vacant is usually the price. Perhaps reducing it will speed up the process of getting a tenant.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
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Yes, we signed "Exclusive Management Agency Agreement" with the current agent. The vancancy rate in that area is below 2%. I admit our rent is a bit too high in the first place. It's what agent suggested. After few weeks, the agent suggested we drop the price which we did. That's why we feel that the agent is not very effective. With that contract, can we get the new agent to look for tenant at the same time? or should we ask the current agent first?
Yes, we signed "Exclusive Management Agency Agreement" with the current agent. The vancancy rate in that area is below 2%. I admit our rent is a bit too high in the first place. It's what agent suggested. After few weeks, the agent suggested we drop the price which we did. That's why we feel that the agent is not very effective. With that contract, can we get the new agent to look for tenant at the same time? or should we ask the current agent first?
The exclusive period is usually finite… so say four months or something, and then you can advise the property manager you are terminating them. Have you had a read of your management authority document to check what the situation is?
Jacqui Middleton | Middleton Buyers Advocates
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@sydney wrote:Yes, we signed "Exclusive Management Agency Agreement" with the current agent. The vancancy rate in that area is below 2%. I admit our rent is a bit too high in the first place. It's what agent suggested. After few weeks, the agent suggested we drop the price which we did. That's why we feel that the agent is not very effective. With that contract, can we get the new agent to look for tenant at the same time? or should we ask the current agent first?What are the relevant terms of that agreement? We have no way of knowing what you agreed to, you must read your contract.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
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Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
I agree it is impossible to answer with any form of confidence or accuracy without knowing the conditions of the Contract.
If you feel that the rent is slightly higher than market rent are you not better off to reduce the rent and meet the market rather than let the property get stale whilst you are arguing over the terms of the contract.
Whilst i understand you can offset the lack of rent in your Tax Return I am a firm believer of trying to maximise the occupancy of the property. You can always increase the rent at the end of the 6 or 12 month Tenancy.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Check your insurance policy as well. Generally you will find if you have to make an insurance claim for some reason and the property has been vacant for 60 days or more, an additional excess fee will apply to the claim. Drop the rent a bit and get a tenant in. That said, we still haven't established whether you are able to get out of your management agreement with the agent yet and hire someone more effective. Did you take a look to see?
Jacqui Middleton | Middleton Buyers Advocates
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Is this property in Sydney?
Regards
Shahin
TheFinanceShop | Elite Property Finance
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