Advice please. How do I take over the management of my Investment property from rental agent (they are useless).

tonka on 05/09/2016 - 20:21

I've had a cheap unit rented out for 15 years at 5% through a real estate agent. I put the tenants in 15 years ago before I handed to estate agent.

So I've been paying them about $50 a month for the last 15 years to do nothing, property and tenants are maintenance free. The original property manager moved on about 5 years ago and they have been screwing things up since then.

My objective isn't so much to save the money (though I should and could use it) but to remove the hassle from the equation which is the property manager.

State is NSW if it makes a difference.

Advice is also appreciated for QLD though as my friend has a unit there where they are sick of the agent. (Getting repairs done without permission or a intelligible explanation of what was broken. Also constantly trying to hit them up for subscriptions to maintenance companies for fire alarms etc and telling they legally have to join. Which is rubbish and just them being risk adverse and trying to outsource their job at the landlords expense).

Not trying to rort the tenant, more get rid of the middleman to provide a better service to the tenant and have a little more cash to do so.

Home & Garden

Comments

  • pjetson on 05/09/2016 - 20:26
    +4

    What does the contract that you have with the agent say about terminating the contract?

    • tonka on 05/09/2016 - 21:45

      Not sure but I would have to find out.

      I'm more curious if I have to do anything with the bond that's registered or if it's just a matter of giving them a new bank account to deposit the rent.

  • hell0 on 05/09/2016 - 20:27
    +2

    You have to to into the office and fight them. If you win by either them tapping out or the fight stopped in your favour you will be awarded the right to manage your property.

    • pjetson on 07/09/2016 - 10:11
      +1

      Is that "hand-to-hand" combat, or are there weapons of some kind involved?

      • hell0 on 07/09/2016 - 11:01

        Only office-themed items, that is items that are office-use can be used. Staplers, desks, books, VCAT forms…

  • [Deactivated] on 05/09/2016 - 20:32
    +2

    Are you saying you've had the same tenants for the past 15 years? If so, well done.

    Property managers take all the hassle out of finding tenants and organising the paperwork. They are also supposed to do regular inspections.

    If you really don't like the property manager, shop around for a new one before you decide to take on all the work yourself.

  • tonka on 05/09/2016 - 21:59

    Yeah same tenant for 15 years they knocked on the door when they saw me moving out and have never paid rent late.

    I don't care so much about the inspections and sorta suspect these tenants will stay for another 15 years, I get on pretty well with them and keep their rent about 10% under market. So potentially I've paid $9K over the last 15 years for not much and thinking maybe I should stop before I give them another 9K.

  • tonka on 05/09/2016 - 22:01

    Is complicated a little by the fact that the real estate owner is a really nice guy and sorta a friend.

    • altomic on 05/09/2016 - 22:51
      +1

      I'm a nice guy and will sorta be your friend for $50 a month (for doing nothing).

      You say to the real estate agent that your going to manage the property your self and no longer require their services.

  • CheapskateQueen on 05/09/2016 - 22:55

    All you have to do is give your agent notice your agreement is terminated in writing. There's a notice period in your agreement,probably 60 days.

    They will organise to have the rental bond transferred to your name and send you confirmation when it's done.

    Let your tenants know that you'll be managing then privately.

    Boom. You're done.

    I hate agents and I've had two piss poor shit agencies. Onto my 3rd one now. Only want them for the first few months to ensure the tenants are OK (cry me a river my last tenants were a plague on my life)

    You're in a great position. Definitely don't need an agent! Terminate them asap!

  • poppit88 on 06/09/2016 - 02:03
    +2

    Look at the signed management agency agreement you have with the current real estate agent. It will state the period of notice you need to provide to the agent that you no longer require them to manage the property. In short:-

    1. Give notice to your agent (Usually 30 days)- in writing.
    2. Give notice to your tenant that as of such and such a date you will managing the property and they should pay the rent into an your nominated account. This needs to be done in writing also.
    3. Ensure that you go through a final inspection process of the property with you and the real estate agent.
    4. Fill in a transfer of bond form and have the tenants sign it - so that you are listed as the registered landlord (ie: no longer the agent.)
    5. Fill in a new Condition Report.

    That's it from memory.

    Cheers

  • oscargamer on 06/09/2016 - 08:54
    +1

    Check your house insurance. Some companies don't like to insure without a real estate agent in the loop.

  • DICKY 1 on 07/09/2016 - 15:49
    +1

    Hi Tonka
    I'am a licenced agent if you follow the advice of (poppit 88) you would effectively have terminated your agent and therefore be free to manage your own property.I suggest you confirm your rights and responsability with Fair Trading.

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