All Topics / Help Needed! / How to get rid of my property manager?

Viewing 15 posts - 1 through 15 (of 15 total)
  • Profile photo of Jade12Jade12
    Participant
    @jade12
    Join Date: 2013
    Post Count: 12

    I have my property manager for a few months now and it hasn’t been pleasant. I received late rental payment and very random amount every single month. Suppose to be paid every fortnight but it has never been on time, sometimes three weeks, with amount not reflecting the weekly rent.

    Twice she has charged me the wrong % of fees and additional fees, suppose to be 7 but was charged 8. Told her the first time and it was the same again the next month! Recently, the tenants have trouble with the heating unit; it turned off after 5 mins. She sent me an email asking for permission to get a PLUMBER to check, saying it might need a service.

    I rang the tenants to confirm the problem with the heating unit and took the opportunity to ask her about the rental payment. She said she has a direct deposit and it get paid off every single week to the agent. I have a reliable builder in that area who I just rang to figure out the issue and will send someone there to service the heating unit.

    I would like to do self manage the property instead of paying a non reliable agent. Can I op out of the contract with the property manager asap? Can’t find the clause on termination the contract in the agreement. Please advise. Many thanks.

    Regards,
    Jade

    Profile photo of BennyteeBennytee
    Participant
    @ten_burner
    Join Date: 2006
    Post Count: 243

    There should be a termination notice period in your property management agreement, email them and say that you are terminating the management agreement (so you both have a record), 30 days is a normal termination notice period, however it might depend on which state your property is in.

    Profile photo of TheNewGuyTheNewGuy
    Participant
    @thenewguy
    Join Date: 2014
    Post Count: 151

    A tougher stance, would be.

    I would send them an email outlining your concerns and ask that they rectify the problems by a certain period otherwise you will terminate the agreement.

    If the fail, and since you have contact with the tenant give them new bank account details and get them pay you directly.
    Wait until the latest payment from the RE is in your account then send them an email along the lines of ‘as per previous email you have failed to rectify the issues and I am terminating the agreement effective immediately. Since you have breached the agreement by providing sub-standard service, I do not believe I am bound by other terms of the agreement such as any notice period.’

    Since you have all the money, and the tenant is paying you directly. They will need to sue you to enforce the contract. Since you sent an email outlining your intention to break the agreement due to their failure to provide services as per the agreement, you should be ok.

    A less harsh option would be to contact the RE owner, they might put a fire under them or get you a different agent.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069

    Hi Jade

    It’s a frustrating situation but not that uncommon. That’s why good PM’s are gold.

    Simple solution is to provide your written notice and contact a couple more management companies so you have someone lined up to take on the property once the agreement expires with the current PM.

    If you start a new post asking for recommendations for PM’s in your area, you might get some details.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Jade12Jade12
    Participant
    @jade12
    Join Date: 2013
    Post Count: 12

    Thanks all for the advice. Just received my monthly statement and I have been charged more than 7% again for the management fees.
    This is really frustrating. It seems they do not know how to count properly.

    Profile photo of BennyteeBennytee
    Participant
    @ten_burner
    Join Date: 2006
    Post Count: 243

    A tougher stance, would be.

    I would send them an email outlining your concerns and ask that they rectify the problems by a certain period otherwise you will terminate the agreement.

    If the fail, and since you have contact with the tenant give them new bank account details and get them pay you directly.
    Wait until the latest payment from the RE is in your account then send them an email along the lines of ‘as per previous email you have failed to rectify the issues and I am terminating the agreement effective immediately. Since you have breached the agreement by providing sub-standard service, I do not believe I am bound by other terms of the agreement such as any notice period.’

    I believe you will still have to pay their management fees for the notice period, even if you said you wanted everything handed over to you tomorrow. Remember, by signing the managing agreement you have agreed to the terms & conditions on that document.

    Profile photo of John CarneyJohn Carney
    Participant
    @americapropertysource
    Join Date: 2010
    Post Count: 15

    I have my property manager for a few months now and it hasn’t been pleasant. I received late rental payment and very random amount every single month. Suppose to be paid every fortnight but it has never been on time, sometimes three weeks, with amount not reflecting the weekly rent.

    Twice she has charged me the wrong % of fees and additional fees, suppose to be 7 but was charged 8. Told her the first time and it was the same again the next month! Recently, the tenants have trouble with the heating unit; it turned off after 5 mins. She sent me an email asking for permission to get a PLUMBER to check, saying it might need a service.

    I rang the tenants to confirm the problem with the heating unit and took the opportunity to ask her about the rental payment. She said she has a direct deposit and it get paid off every single week to the agent. I have a reliable builder in that area who I just rang to figure out the issue and will send someone there to service the heating unit.

    I would like to do self manage the property instead of paying a non reliable agent. Can I op out of the contract with the property manager asap? Can’t find the clause on termination the contract in the agreement. Please advise. Many thanks.

    Regards,
    Jade

    Hi Jade,

    For written record, email the pm clearly pointing out the discrepancies in your agreement, what action you would like to happen and in what time period to resolve the issue(s). I agree with @ten_burner, 30 days written notice is standard and you should have a termination clause outlining the procedure. Look in your area for a property management specific company who only focuses on property management.

    Is your property manager licenced? Bad pm are the worst. Been there done that.

    Good Luck!
    John

    John Carney | America Property Source I johncarneyonline.com
    http://johncarneyonline.com
    Email Me | Phone Me

    Work Hard. Play Hard. Profit Hard.

    Profile photo of Heinz57Heinz57
    Participant
    @heinz57
    Join Date: 2012
    Post Count: 26

    Just a random thought, but are you allowing for GST in your % calculations?

    Profile photo of TheNewGuyTheNewGuy
    Participant
    @thenewguy
    Join Date: 2014
    Post Count: 151

    <div class=”d4p-bbt-quote-title”>TheNewGuy wrote:</div>
    A tougher stance, would be.

    I would send them an email outlining your concerns and ask that they rectify the problems by a certain period otherwise you will terminate the agreement.

    If the fail, and since you have contact with the tenant give them new bank account details and get them pay you directly.
    Wait until the latest payment from the RE is in your account then send them an email along the lines of ‘as per previous email you have failed to rectify the issues and I am terminating the agreement effective immediately. Since you have breached the agreement by providing sub-standard service, I do not believe I am bound by other terms of the agreement such as any notice period.’

    I believe you will still have to pay their management fees for the notice period, even if you said you wanted everything handed over to you tomorrow. Remember, by signing the managing agreement you have agreed to the terms & conditions on that document.

    No, you wait until you get paid and every RE I’ve used pays out the balance every month / fortnight, then you have the money and they have none, so they will need to get it from you. Most importantly though, a contract GOES BOTH WAYS – they provide a service, and you pay for it. If the Real Estate breaches the contract by not providing the service, then you don’t have to abide by the termination clause. For this type of breach though, you’ll need to give them the opportunity to rectify it, otherwise if they do choose to sue you, then you’ll probably be liable.

    However, I really do recommend contacting the owner. I’m assuming they’re different people, and you really should bring it to their attention.

    • This reply was modified 9 years, 11 months ago by Profile photo of TheNewGuy TheNewGuy.
    • This reply was modified 9 years, 11 months ago by Profile photo of TheNewGuy TheNewGuy.
    Profile photo of BennyteeBennytee
    Participant
    @ten_burner
    Join Date: 2006
    Post Count: 243

    <div class=”d4p-bbt-quote-title”>ten_burner wrote:</div>

    <div class=”d4p-bbt-quote-title”>TheNewGuy wrote:</div>
    A tougher stance, would be.

    I would send them an email outlining your concerns and ask that they rectify the problems by a certain period otherwise you will terminate the agreement.

    If the fail, and since you have contact with the tenant give them new bank account details and get them pay you directly.
    Wait until the latest payment from the RE is in your account then send them an email along the lines of ‘as per previous email you have failed to rectify the issues and I am terminating the agreement effective immediately. Since you have breached the agreement by providing sub-standard service, I do not believe I am bound by other terms of the agreement such as any notice period.’

    I believe you will still have to pay their management fees for the notice period, even if you said you wanted everything handed over to you tomorrow. Remember, by signing the managing agreement you have agreed to the terms & conditions on that document.

    No, you wait until you get paid and every RE I’ve used pays out the balance every month / fortnight, then you have the money and they have none, so they will need to get it from you. Most importantly though, a contract GOES BOTH WAYS – they provide a service, and you pay for it. If the Real Estate breaches the contract by not providing the service, then you don’t have to abide by the termination clause. For this type of breach though, you’ll need to give them the opportunity to rectify it, otherwise if they do choose to sue you, then you’ll probably be liable.

    However, I really do recommend contacting the owner. I’m assuming they’re different people, and you really should bring it to their attention.

    There is an ethical way and an unethical way to handle the situation. The original property management issues where not what I would call catastrophic or malicious, the ethical thing to do is give them the 30 days notice, then move on.

    I double checked with a PM friend of mine she told me the agency is entitled to the management fees (as I said)for the termination period laid out in the property management agreement, however if you do what The New Guy said 99% of agencies won’t chase them up for fear of the landlord bad mouthing their company.

    Profile photo of TheNewGuyTheNewGuy
    Participant
    @thenewguy
    Join Date: 2014
    Post Count: 151

    I don’t know why I keep replying, but you’ve completely missed the point. Don’t consult a PM, what would they know? Consult a lawyer, as this is covered by contract law. The PM is the worst person to ask this sort of question as they are completely biased in their opinion.

    Contracts need to have ‘consideration’. In this case, the PM will manage the property to an appropriate standard and you will pay them. Pretty simple.

    If they don’t provide an appropriate standard of service, then they are in breach of contract. The type of breach (there are a few different types), will determine what remedies you have open to you. That is why I said to give them a written warning that they are in breach of the agreement, and give them the remedies you need them to fix by a set date. If they still fail then you’re in a better position to argue a fundamental or anticipatory breach of contract, which you negate the notice period. This is 100% ethical, and to be clear the PM not providing a service and still charge them the full management fee for this period and try to enforce a termination period… THAT IS UNETHICAL.

    If you still don’t get it, then good luck to you, but I really recommend you do some research on contract law.

    PS. The reason I know this, other than the fact that I read a lot, is that I had the same problem with one of my PM’s and I consulted a number of lawyers to determine my rights.

    • This reply was modified 9 years, 10 months ago by Profile photo of TheNewGuy TheNewGuy.
    Profile photo of Jade12Jade12
    Participant
    @jade12
    Join Date: 2013
    Post Count: 12

    Just a random thought, but are you allowing for GST in your % calculations?

    No Gst is not included in the calculation.

    Profile photo of Jade12Jade12
    Participant
    @jade12
    Join Date: 2013
    Post Count: 12

    Thanks for all the replies. Still having issues to get them to rectify some errors in the management fees calculation.
    Its pretty simple to calculate and not sure why they don’t get it and still insist they are right.

    Profile photo of BennyteeBennytee
    Participant
    @ten_burner
    Join Date: 2006
    Post Count: 243

    I don’t know why I keep replying, but you’ve completely missed the point. Don’t consult a PM, what would they know? Consult a lawyer, as this is covered by contract law. The PM is the worst person to ask this sort of question as they are completely biased in their opinion.

    A PM agreement is a 2 page document deliberately written in Layman’s terms so its easy for the general public to understand, hardly cause for a lawyer($$$) & if you want to take it further, the cheaper (free) alternative is to contact the office of fair trading in your state, they deal with this type of things everyday, they are the main body in charge of legislation & disciplining RE agents, PM etc. see link

    http://www.fairtrading.nsw.gov.au/ftw/Property_agents_and_managers/Legislation.page?

    http://www.fairtrading.nsw.gov.au/ftw/Property_agents_and_managers/Discipline.page?

    Profile photo of thecrestthecrest
    Participant
    @thecrest
    Join Date: 2004
    Post Count: 992

    I suggest you get paid then email the PM, request they provide a copy of the time period and clause relating to terminating the agreement. Explain the situation, then issue notice that you intend to terminate unless matters are rectified. If no results, give notice and move managers.
    Good luck.
    cheers
    the crest

    thecrest | Tony Neale - Statewide Motel Brokers
    http://www.statewidemotelbrokers.com.au
    Email Me | Phone Me

    selling motels in NSW

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