In a routine inspection, found that property is not looked after. Felt that agency doing pm is not doing a good job. This is the agency's 5th pm in 3 years.
Thinking of managing property myself or changing pm. What things should I do or look out for to terminate the existing pm?
I would like to make sure that the hand-over is done properly. Don't want the agency to get off scot-free.Thanks for your thoughts.
Hi there
Have a read through the management agreement. Most require written notice and some sort of minimum timeframe to cancel.
Self managing requires you to be up to speed with tenancy legislation in your state – and you also have to be proactive with inspections. It's not for everyone but can work well for some.
cheers
jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
The termination period varies from state to state. I know in QLD you need to give 90 days notice to terminate an agreement however if both parties agree, this time frame can be reduced to 30 days.
Ask yourself why you hired a PM in the first place? Do you have time for the headaches and the hassles? You tend to get better renters in Australia with the system you have there. In the US, it can be a complete free-for-all and eviction laws and process differ from place to place. If you live near the property then you might be able to manage it but I would suggest that you represent yourself to tenants as working for the owners and not that you are the owner. The dynamics will be very different. Try to network with other investors in your immediate area and gets some recs from them. Successfully managing investment properties is the hardest part! Here in Atlanta, my group got away from renting entire homes to families after a couple of disasterous years and now create shared housing for much higher & consistent returns, without the damages & vacancy. We have houses that would normally rent for $750 or so bringing in over $1,200 net. We like that! You may wish to try this in your market. All the best.
If you are going with another agency they will handle the changeover. Some even pay the 30 days to the other agent so you don't get hit twice.
It is not worth your hassle dealing with an inefficient PM. Move on.
Hi,
Does a management agreement run out and does it need to be renewed? I am also am not happy with the way my management team is looking after my property here in QLD, I signed up with them 2 years ago and never signed anything since, does that mean I can just tell them I am taking the property off them and moving elsewhere?
David
Yes you can just move but the contract doesn't run out. Read the contract and see how much notice you agreed to give them.
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