Switching property managers

Property management

There are a lot of myths floating around regarding property managers and real estate agents. One of the myths is that you can’t switch managers or agents who are underperforming for you. You can switch and it’s not as difficult or expensive as you might imagine.

Why switch property managers?

Hiring a property manager is a two-way street. As the landlord, you are expected to pay an agreed upon fee to the property manager. The property manager is expected to carry out the duties listed on your agreement. If they fail to do so, they are not doing their job.

What is a property manager expected to do for you? According to Fair Trading NSW, a property manager will:

  • Find suitable tenants
  • Ensuring the tenancy agreement is in order
  • Collect rent and deliver your share minus their payment on time
  • Arrange repairs promptly
  • Conduct regular property inspections
  • Handle disputes
  • Pay bills on your behalf
  • Hire cleaners to prepare a property for new tenants

These duties are similar in all states, but can differ slightly. They may perform other duties as well, depending on circumstances. The important thing is that they do the jobs you are paying them for and do them competently. This isn’t always the case.

All property managers are not created equal. Some are real estate agents who juggle sales with property management. Others may be overworked and will neglect your property or put off doing necessary jobs. There are numerous reasons why you might be disappointed by a property manager. Our article, 10 signs it’s time to get a new property manager outlines many of the reasons why it might be time to look for a new property manager.

If you live at a distance from an investment property, you might wonder why your property manager is having a hard time renting your property. There can be several reasons for this. Documented stories include one case of a real estate agent overselling a property. They advertised a property as more upmarket than it was. When prospective tenants viewed the property, they realised they had been deceived.

In another case, the property manager failed to move threadbare furniture out of an unfurnished home and didn’t inform the client of necessary repairs. Paint was chipping on the walls, the toilet was filthy and the carpets needed cleaning. The client found out through a third party and sacked the property manager.

Switching property managers

Switching property managers is not as difficult as many people believe. You will have to check your contract. Some contracts call for 30, 60 or 90 notifications. If you feel you can put up with the property manager for the notification period, you can give them notice of intention to change property managers and wait until the notification period expires. If you feel you can’t wait, your other option is to pay the management fees and switch property managers.

If you are switching because a property manager has neglected their duties, you may be able to give them a day’s notice. In general, property managers try to avoid disputes because it can tarnish their reputation. If you state the reason why you are leaving in writing, many property agents won’t object. It is important to state the reason in writing and keep a copy of the letter. Having a paper trail will help you if there is a dispute about changing property managers.

Regulations vary in different states, but all states have provisions that allow a rental property owner to change property managers if they are not performing their duties. In many cases, you can terminate a contract immediately if you have reason to believe the property manager is not doing their job. If there is a dispute, you can take legal action, but that usually isn’t necessary.

Realtor Showing Young Family Around Property For Sale

Each state has regulations in place regarding property managers:

You can try to handle a dispute with a property manager alone, but there is an easier way. If you switch to Leasi, we can help you switch property managers in two weeks or less wherever you live. We have experience in the field and know just what to do in every state.

` newsletter-cta-img
Subscribe to our newsletter

Subscribe to our newsletter

Hints, tips and ideas to guide you through your property management journey