Compliance corner with Simon Kinsey.
As a landlord you will definitely have had to break up with a few property managers or if you haven't yet the chances are you will.
There's many reasons you might want to switch your property manager and its not always about poor service. As new technology and models for property management hit the market you might just want fairer pricing and more flexibility.
Like with all things property management terminating a contract with your property manager can involve different steps based on local regulations.
Generally it is common for a Managing Agency Agreements to have a termination notice period ranging from 30 - 90 days with some particular exceptions for Western Australia, South Australia.
This means that you will need to give written notice to your property manager that you would like to terminate the contract and expect all files related to your property to be transferred to your new manager at the end of the notice period.
No matter the reason it is within your rights to negotiate with the incumbent agent to pay the fees for your notice period upfront to allow for an immediate transfer. This is a good practice to protect against any potential mismanagement as you exit their business.
South Australia and Western Australia
It is a common practice to write into the contract a minimum fixed term period of 12 to 24 months. In these instances you can get out of your contract but will need to prove that there was a breach of contract by your property manager. Alternatively it is always within your rights to negotiate your way out of the contract if you believe the contract is fundamentally unfair.
Under the Australian Consumer Law introduced in January 2011, there are provisions specifically relating to unfair contract terms in standard form consumer contracts. A term is unfair if it causes a significant imbalance in the parties’ rights and obligations; is not reasonably necessary to protect the legitimate interest of the supplier; and would cause detriment if it were applied or relied on.
Remember with yabonza Smart Property Management there are no lock in contracts plus you'll get a three month satisfaction guarantee AND we manage properties Australia-wide!
If your interested in learning more book a call with a yabonza expert.