Hope to get some advise. We bought a place which has an existing rental contract that ends shortly after settlement date. We dont really like the agents who are currently managing the rental property - as discovered during our settlement period. The agent has indicated that the current tenant is willing to sign new contract. If I tell the agent now that I do not need a agent managing my rental and I have decided to self manage, am I in any risk? If the current tenant do stay, then i'm not too worried about not having an agent, as current tenants have been there for a while and dont seem to be a problem. Also should i be getting rid of the agent after the current contract ends (after settlement) or straight after settlement?
Changing Existing Rental Contract from Agent to Self Managed
imket on 27/03/2018 - 21:25
Last edited 27/03/2018 - 21:47 by 1 other user
Last edited 27/03/2018 - 21:47 by 1 other user
Comments
Do you mean the contract for the agent or the lease agreement with the tenants?
The tenants cannot be removed until their lease expires as their lease is tied to the property, but the agent (as I believe you are discussing above) can be removed from the process as of settlement.
I never said Lease. Obviously I'm talking about contract between Vendor and agent.
You're only bound to keep the agent if they get you to sign a management authority. If they haven't, as said above, you have no relationship with them to honour.
Just make sure you're aware of the regulations if you're going to send manage, for example notice periods for inspections, vacates etc.
Don't enter into any agreement with the agent if you don't like them. Even if you weren't self managing - your entitled to choose your own agent.
The rental/agent contract is between the Vendor and the agent. It doesn't concern you. You are not bound to it or a party to it. You can give them the flick from settlement day, absolutely no issues.
If they have a sook about breach of contract, their only recourse is to chase the other party to the contract, the Vendor.
ENSURE your conveyancer adjusts the rent as of the settlement date. If the tenant is in arrears or has the month paid up, you NEED to know prior to settlement.
not legal advice