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Is This Normal Practice

Discussion in 'Real Estate' started by Jenny, 1st Dec, 2005.

  1. Jenny

    Jenny Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    103
    Location:
    Canberra
    I have just received a form letter from PM Toowong Qld:-


    Your tenants at.....have a lease which expires.....

    Please return this form indicating your instructions. The fees associated with option C and E are clearly marked.

    As your Property Manager I would recommend option B - 12 months.

    Please cirlce one of the options below.
    A) Allow the tenancy to lapse onto a periodic (month to month) tenancy at the same rent
    B) Attempt to renew the lease at same terms and conditions for 6 months or 12 months.
    c) Attempt to negotiate a rent increase of $ (please advise) (6 months - half a weeks rent plus GST fee incurred. 12 months half a weeks rent plus GST fee incurred.

    D) Ask the tenants to vacate as you wish to sell or move in
    E) Ask the tenant to vacate as they are not suitable and commence search for a new tenant ( one weeks rent plus GST fee incurred upoon placing a new tenant).








    I feel like a number not a person. Do other PM's ring and COMMUNICATE???

    JENNY :confused:
     
  2. MJK

    MJK Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    280
    I get letters too, although with not quite as many options. I think it covers the agent legally.
    By the way most of these agents have hundreds of properties to manage and are on the phone all the time for all sorts of issues. I'd only get worried if you called them and the didn't give you the time of day.

    MJK :D
     
  3. Tzaki

    Tzaki Well-Known Member

    Joined:
    20th Sep, 2005
    Posts:
    72
    Location:
    Canberra
    Nearly all of my PM write to me ... the monthly statement, newsletter etc. When I get a phone call it is usually something that needs dealing with NOW or is sensitive (these young guys are no good and are not cleaning your place, want me to chuck em out?) :D

    That said, my PMs only charge me a renegotiate fee when there is a change on tennants... but maybe I am just lucky?

    Also, that letter sounds VERY stiff and formal (maybe an ex public servant! :eek: ) the ones I get are more letter-like than form like. A good PM will raise the rent as the market will allow without needing your written intructions, so look carefully at the service you are being given.

    We had a PM (onsite manager) who hated raising rents, let the complex get run down and generally didn't manage for the owner but had been "captured" by the tennants/owner-occcupiers, in the 4 years they ran the place rents went up $10, as soon as they were replaced rents went up by $35pw. They sold the management rights when several owners got fed up and were starting a class action against them for loss of income and the body corp was getting ainsty about the condition of the complex.

    So manage your PMs and change them if you feel that you are not getting service. Shorten the 90 days notice in the Pm contract to 30 days to keep em honest!
     
  4. TakeStock

    TakeStock Well-Known Member

    Joined:
    14th Aug, 2005
    Posts:
    140
    Location:
    Sydney
    That does sound very formal, however, at least there should be no confusion. Having said that, I would hope that the PM has also discussed this less formally on the phone with you - a great opportunity to get a good picture of how the tenants are going, does the house need any minor repairs etc...
     
  5. Jenny

    Jenny Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    103
    Location:
    Canberra
    No There has been no phone call at all. I would expect a phone call to explain why they have decided to recommend to not ask for an increase. Also my other PM's do not charge to negotiate rent rises. There is only a charge tofind a new tenant.

    I have never been entirely happy with the interactions I have had with this PM, but there were sitting tenants when we bought and they have stayed, uneventful etc. so I have taken the easy road and let things slide along. After my last visit I did ask for an email that I could use for tax purposes to say I had inspected the property - it never arrived.

    I think an annual phone call around lease end time to discuss things generally is not too much to ask - I don't care how big their rent roll is. After each exchange with this PM I feel like a number, not a person.

    ...............so I have sent a fax to end this relationship.............

    life's too short to deal with people who don't cut the cookies :)

    MJK - "didn't give you the time of day" - you hit the nail on the head - the couple of times I have needed to call this PM he sounded bored, uninterested and mechanically replied and got me off the phone asap :mad:
     
  6. robwil

    robwil New Member

    Joined:
    28th Sep, 2005
    Posts:
    3
    Jenny.

    In regard to the rent increase, there is no way I would agree to these fees,

    and I would be looking for a new PM,

    Regards Rob.
     
  7. Jenny

    Jenny Well-Known Member

    Joined:
    15th Aug, 2005
    Posts:
    103
    Location:
    Canberra
    Ok thanks to technology - fax & email, the deed is done and PM will changeover in 30 days :)

    I have just had a phone call (too little too late) from current PM asking where he had gone wrong, so I have had my say :D

    Happily handing over to LJ Hooker Clayfield who manage our Ascot property very efficiently. (I think this relates to another thread that Jacques started re excellent property managers.)

    So good to have everything finalised in one day :)

    Cheers
    Jenny
     
  8. Jacque

    Jacque Team InvestEd

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    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Well done Jenny for taking affirmative action and not just rolling along, putting up with less than satisfactory service :)
    If more of us were pro active landlords, then I believe the general standard of PM's would improve. There are far too many out there doing a mediocre job and getting away with it because their clients are too lazy or disinterested to change.
    I like the way you handled it by the "fax sack!"
    Hope the new PM pans out to be much better for you :)