Real Estate Agent can’t find tenant - can I switch?

Lnewbie4453 on 29/02/2020 - 09:34
Last edited 29/02/2020 - 09:38

Hello OZB community.

We have signed an agreement with a real estate agent to lease out our property at the beginning of January 2020 but still they have not found any tenant.

We want to switch real estate agents but the agreement we signed states we need to give the agent 40 days notice if terminating. But does this apply when they haven’t even found a tenant? Located in NSW. Can I give it to another agent in that 40 days?

Property - rent is in line with other properties in area. Some are even in worse condition and have been leased for more and also leased within 1-4 weeks.

Anyone who has gone through similar experience would appreciate your inputs.

Home & Garden

Comments

  • [Deactivated] on 29/02/2020 - 09:39
    +23

    the agreement we signed states we need to give the agent 40 days notice if terminating.

    • newbie4453 on 29/02/2020 - 13:46

      But in the agreement it says to “manage” property. How can they manage something that is vacant if they haven’t even found a tenant.

      • [Deactivated] on 29/02/2020 - 15:15
        +4

        Theyre managing the property, not the tenants. The property is still a property even withlut tenants.

  • mbck on 29/02/2020 - 09:54
    +1

    The contract will guide you as to what you can or can't do.

    Does it have any clauses specific to "unable to find tenant"? Yes, great. No, give them 40 days notice.

    No one here knows the exact contract you have.

    • [Deactivated] on 29/02/2020 - 10:17

      If they can find a tenant, you won't be able to get rid of them without significant penalty until the tenancy contract expires.

    • newbie4453 on 29/02/2020 - 13:47

      No specific clause. I don’t see why 40 day notice is given when they couldn’t find any tenant for 60+ days.

      • HighAndDry on 29/02/2020 - 19:32
        +5

        Because it's in the agreement you signed.

  • Meho2026 on 29/02/2020 - 12:00
    +2

    Ive been in that situation before and was able to have it listed with a second agent so it was listed with 2 agents at the same time. Just approach another agent and explain the situation and they will sort it out for you if its possible.

    • newbie4453 on 29/02/2020 - 13:47

      Thanks, might do this.

  • cjbowden on 29/02/2020 - 12:31

    There may be differences in NSW, but are you sure your agreement requires 40 days notice for terminating the exclusive leasing period (as distinct from the Continuing Leasing Period)?

    In Victoria, the Exclusive Leasing Period (which typically would be between 30 and 60 days) means you cant engage another agent. Once they have found a tenant, then the Continuing Leasing Period kicks in, which requires notice to cancel. Certainly in Vic, if they cant find a tenant in 60 days (if thats the agreed time), you can walk away with no notice period required.

    • newbie4453 on 29/02/2020 - 13:48

      Thanks, I think that’s where my confusion was re: notice period when they can’t even find tenant to manage property. Since it’s 60+ days now I should probably discuss with another RE agent.

  • ihbh on 29/02/2020 - 14:15
    +1

    but still they have not found any tenant

    Possible reasons:

    1. Rent too high for quality of property in the area
    2. Agent hasn't properly advertised the property (e.g. on RE.com.au or Domain.com.au)
    3. Your property is in a remote area with little demand

    Which one do you think it is? E.g. do a search on one of the sites for your suburb. Does your property turn up? How does the rent compare to other properties?

    If 1. or 3. is the reason, then, changing agents and doing nothing else won't help your situation.

    If 2. then give notice and/or discuss with the agent.

    • newbie4453 on 29/02/2020 - 15:08

      What do I do if it’s a combination of 1 and 2. Not remote, 1 hr from CBD.

      • ihbh on 29/02/2020 - 16:04

        1. Obvious, reduce the rent. Cost-benefit analysis: say reducing it by $20 gets you a tenant - that's $1k less p.a. vs how many weeks vacant at current rent that you miss out on.

        2. What do you pay the agent? If you pay piddly, there's less incentive for them to pay for advertising, make an effort on your property vs others in their portfolio. Do you pay one week's rent if in the contract for a new tenant? Check how other agents in the area advertise for vacancies and discuss with your agent/give notice to move if they don't do something comparable/will find tenants.

        • newbie4453 on 01/03/2020 - 14:07

          I’ll do that. Thanks for your advice.

  • Seraphin7 on 29/02/2020 - 14:58

    Where is the property? "NSW" is a big place. If your property is in Sydney's inner suburbs, then the situation seems odd. If it's in a regional area, it may well take an extended period to lease a property.

    • newbie4453 on 29/02/2020 - 15:09

      1 hr from CBD. Agree it is. Fully renovated too.

      • Seraphin7 on 29/02/2020 - 15:13

        Got a suburb for us?

        • newbie4453 on 29/02/2020 - 15:16

          Cronulla area

          • Seraphin7 on 29/02/2020 - 15:24
            +1

            @newbie4453: Cronulla itself you'd expect to have something leased by now given the parameters you've described. That's a very popular suburb and if your agent can't let something there, you've got to seriously question what's going on.

            On the other hand … the "Cronulla area" will encompass some localities that are relatively more difficult to find a tenant. Without knowing specifically where your property is, it is difficult to comment. That said, you should investigate the average time to let where your property is located and that should drive your next steps.

  • OzHunterNSW on 01/03/2020 - 12:28
    -3

    Give them 40 days… what's wrong with you?

    If you still can't find tenant, the question is, what type of Novell are you trying to push onto the unsuspecting market.

    If it were an investment property, is it near transport, shops, Uni? Did you think of that?

    Sounds like you have done minimal to every thing and expect people to start throwing money at you.

    What if a repair were needed…. sounds like you will do your utmost to get out of doing any form of maintenance on the property.

    • newbie4453 on 01/03/2020 - 14:06

      It used to be my PPOR before we decided to move out. Fully renovated, no repairs needed. 10 mins drive to station and shops. 1 hr from CBD. Everyone I’ve spoken to thinks it’s odd why it hasn’t be rented yet.

      • [Deactivated] on 02/03/2020 - 10:20

        Has the property manager provided you with updates in relation to the number of open for inspections held; number of people who attended each one; feedback from prospective tenants, their opinion as to why your property has remained untenanted for so long? etc.

        If possible, find out what is the average number of days that similar rental properties to yours remain on the market between tenancies so as to better manage your expectations.

        I would definitely research and approach another agency in the area and request their advice and if you're happy to change property management, let them handle the switch.

  • darkchoc on 28/03/2020 - 10:15

    Contact preferred agent with a good reputation. Explain it to them. They should be able to transfer across the listing. Pick a helpful agent that understand and will help you.

    Old agent shouldn't care about contract terms as they haven't made any income anyway from the property not being leased.

    Speak to both L old agent and new agent to work it out. Worst comes to worst, you pay two sets of management fees if the property is leased. Until it's leased, there is no management fee!

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