I had a lease agreement with an agent and that expired about a month ago. Tenants moved out about same time. They have been advertising on internet for new tenants and having a few home opens with no success since mid July. Do I have to give them notice of my intention to drop them or can I just end it since we no longer have a contract?
Read your management agreement.
I think it goes "periodic" and you need to give 28 days notice generally. (REIWA standard management agreement)
Can i ask why?What is PM not doing?
How is the rental market?
Other option is to give the agent notice that you are going to get another agent to look for a new tenant but also inform them that if they find a tenant before the new agent does you will keep them as the managing agent. In NSW you dont need to have a management agreement signed before you engage an agent but sign once they find you a tenant. Does this apply in WA as well?
RAAFIE, tenancy agreement and agency agreement are two different beasts. The agency can't act on your behalf unless there is an agenxy agreement, this may be for a set period eg 12 months. There is also a notice period to terminate the agreement eg 30 days. The tenants only occupy for the term of the lease and holding over. These two won't necessarily coincide.
Salvatore1 said: ↑
In NSW you dont need to have a management agreement signed before you engage an agent but sign once they find you a tenant.Click to expand...Sorry to contradict you Sal, an agent is not entitled to the commission (ie letting fee) unless they hold a signed agency agreement. The agency cannot act without an agreement in place ie on what terms are they proceeding? How do they access the property?
The management agreement on the other hand grants the agency exclusive rights to let and manage on behalf of the owner.
Take a read of the Agency Agreement (or just call them) to find out if you can just terminate your agreement without any notice. Be honest with them and tell them its because it's taking too long to find something and your getting desperate (perhaps this might spark them to try some different tactics).
All agreements are different in terms of the notice you need to give to them them but typically it's around 28 days written notice (maybe not any if there is no tenant).
Regardless make sure you put it in an email to them (after you speak with them) so there is a record of your convo (and termination of agreement).
Scott No Mates said: ↑
Sorry to contradict you Sal, an agent is not entitled to the commission (ie letting fee) unless they hold a signed agency agreement. The agency cannot act without an agreement in place ie on what terms are they proceeding? How do they access the property?Very true, Scott.
The management agreement on the other hand grants the agency exclusive rights to let and manage on behalf of the owner.Click to expand...
However, in WA, when the "standard" management agreement goes beyond it's nominal expiry date,
it lapses to a periodic agreement, much like a tenancy agreement.
This allows the landlord and REA to either sign up to another fixed term or continue with existing terms until either party gives 28 days notice to terminate management agreement.
Hi Scott, a management agreement does not need to be in place before an agent can advertise a property for lease. There is no requirement by law. Yes I agree it protects an agent to ensure he gets paid but if the owner and agent agree to terms then an agreement can be signed once a tenant is found. I ensure that the management agreement is signed once i find a good applicant and before the new lease is signed.
Thanks for all the advice everyone. As it turns out when there once was not a potential tenant to be found, suddenly after one home open they are coming out of the woodwork. Crazy this land lording and stressful too.
Salvatore1 said: ↑
Hi Scott, a management agreement does not need to be in place before an agent can advertise a property for lease. There is no requirement by law.Click to expand...See extract:
55 No entitlement to commission or expenses without agency agreement
(1) A licensee is not entitled to any commission or expenses from a person for or in connection with services performed by the licensee in the capacity of licensee for or on behalf of the person unless:
(a) the services were performed pursuant to an agreement in writing (an agency agreement) signed by or on behalf of:
(i) the person, and
(ii) the licensee, and
(b) the agency agreement complies with any applicable requirements of the regulations, and
(c) a copy of the agency agreement signed by or on behalf of the licensee was served by the licensee on that person within 48 hours after the agreement was signed by or on behalf of the person.
Note. Section 55A allows a court or tribunal to order that commission and expenses are recoverable in certain circumstances despite subsection (1).
(2) The regulations may make provision for or with respect to regulating the form of agency agreements and the terms, conditions and other provisions that an agency agreement must or must not contain. Without limiting this subsection, the regulations may prescribe one or more standard forms of agency agreement.
(3) Without limiting the means by which a copy of the agency agreement may be served on a person, it may be served by means of facsimile transmission or by such other means as the regulations may allow.
(4), (5) (Repealed)
Hi Scott, i dont disagree with what you have written re agent getting commission but as i stated a management agreement is not required to advertise a property or find a tenant but should be in place before a new tenant signs a lease
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