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  • $1000 to ditch a property manager

    I have been contacted by a protentual client to manage their two houses. However their present PM demands that they have to pay her $1000 to leave them. I have looked at the management contracts that the firm publishes on their web site. This form is the same as the national francise publishes. However it appears the Nelson branch have these special extra clauses. Has anyone had any experiance with poor property managers and been asked to pay $1000 to ditch the bad performers.

  • #2
    Without knowing the details this sounds like one of those cheeky clauses people sometimes put in. Totally unenforceable but worth a try because some unfortunate honest law abiding naive person might actually pay it.

    I would be inclined to simply walk into their office and get the keys back. If they stutter and bring up this $1,000 thing I'd walk out dangling out the keys singing: "Sue me, sue me, sue me..."

    xris

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    • #3
      There is a company in Christchurch that will charge $750 if you either sell the property or change management within the first year but if you decide to sell through them this fee will be waived.

      But the majority of companies charge two to three months of management fees if you change immediately. We are in a transition period with our whole portfolio and have given notice of two months rather than be charged the penalty.

      Regards
      Trish Clark

      Comment


      • #4
        What I'd do

        Originally posted by Glenn View Post
        I have been contacted by a protentual client to manage their two houses. However their present PM demands that they have to pay her $1000 to leave them. I have looked at the management contracts that the firm publishes on their web site. This form is the same as the national francise publishes. However it appears the Nelson branch have these special extra clauses. Has anyone had any experiance with poor property managers and been asked to pay $1000 to ditch the bad performers.
        Find some unemployed person/solo mum/ student who needs some extra cash and pay them to continuely ring, fax and email the business tying up all their lines and means of communications with the outside world (ever heard of an email bomb??) Keep the property manager so tied up with petty rubbish and answering calls etc untill she gives up and dumps you as a client.

        I think a couple of days of a full out frontal attack would work .... pay the person a % of the $1,000 and keep the rest.

        If you would like some advice as to dirty tactics that would be suitable PM me ..... nothing illegal of course just irritating as hell

        Cheers
        Spaceman

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        • #5
          Originally posted by spaceman View Post
          Find some unemployed person/solo mum/ student who needs some extra cash and pay them to continuely ring, fax and email the business tying up all their lines and means of communications with the outside world (ever heard of an email bomb??) Keep the property manager so tied up with petty rubbish and answering calls etc untill she gives up and dumps you as a client.

          I think a couple of days of a full out frontal attack would work .... pay the person a % of the $1,000 and keep the rest.

          If you would like some advice as to dirty tactics that would be suitable PM me ..... nothing illegal of course just irritating as hell

          Cheers
          Spaceman
          Well this is a cut of what these disatisfied clients have put in their email to me. I have taken out the name of the firm.
          Had a meeting with #$%@* and aired our grievances and did hope that they would ask us to take our houses away from their management company - they did no such thing. From our standpoint it was not a successful meeting, lots of posturing on their part and we both felt that her staff member was a very patronising young person.

          The upshot of it is that for us to get out of our contract with them we will have to wait until early September this year, or be up for $1000, which, a present we cannot afford. Even though we suggested strongly to that we were not happy with them we got a strong feeling that they thought they were doing a great job!

          We signed up with ##$$# just a few weeks before T left the company. We are not happy with them, we are looking for advice/information/some proper facts! re property management from someone who can do this in a no nonsense, straight up sort of way.

          Comment


          • #6
            If you want to be all sensible

            Surely a contract is binding on both parties and if [email protected]#[email protected]# aren't living up to their end of the deal then the contract is null and void and as such they can just leave.

            Still reckon my first idea is best though

            Cheers
            Spaceman

            Comment


            • #7
              I quoted some of the REINZ property management guidlines and how the PM had failed to adhere to the office manager to get out of our agreement, and there was no argument at all up until I signed with another agency a couple of weeks later then the orginal one came back and said they were going to charge me management fees whilst the house was empty!

              As they had paid out all rents by this stage, and "their" departing tenant (who was going anyhow) had left behind some issues, I continued my rant about their lack of service, quoting email dates etc and eventually they got sick of me as much as I was sick of them. I brought in my solicitor at one point and asked for the principal to contact him, which he did not.

              If they are failing in their duties, or have reasonably failed, then the owners should point it out to the Principal, with the relevant REINZ clause (or whatever) and tell the Principal they intend to take it up with REINZ unless they are released from the agreement.

              I would think with the recent high profile cases gone before REINZ and the media the Principal of the agency would be keen not to see their agency named.

              But I did not have much success until I commenced CC'ing the principal and office manager.
              S.

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              • #8
                As long as you can show that they really have not performed (and even then, even if you cannot) they would have a lot to lose by taking you on. Let them know you will fight dirty if you have to, suggesting they might want to consider their reputation.

                It simply should not be worth their while.

                xris

                Comment


                • #9
                  name and shame them on here, theres nothing illegal about stating which company it is and what they charge as its a fact and im sure they don't wont the PI community to know who they are - you never know they might waive the fee if you don't name them

                  Comment


                  • #10
                    Well I am a little bit reluctant to name them because I am only getting this third hand. Like the owners want me to manage the property but their existing rotten PM wants to hold onto their client / business until they have extracted as much as possible from them. I think it would be a generalisation that those people who use a PM generally are not ones that enjoy a legal fight.
                    I might also point out that this business is not a member of MREINZ nor of IPMA.
                    I could say I have heard a number of other things about them also but this is the first in writing and not one of those things PM's have little power over like bad tenants.
                    So I just have to be patient until September.
                    I put this post here not to get at the PM but rather to show that before signing over management look a lot more at the fine print and not at the lovely web sites and wonderful glossy brochures.
                    Just because a duck quacks like a duck does not make them a duck.

                    Comment


                    • #11
                      I have avoided a similar situation just this week. I showed a (potential) Agent through a flat the other day. They were very professional, knew the market, knew the tenant pool, all very nice. They left me with a copy of their terms and conditions. They then hounded me over the next two weeks until they got me (as opposed to my answering service).

                      The conversation went something like this :

                      Agent : Hi, it's such and such from **&##, I phoning about your flat in xxx Street.

                      The Big Dog : Right. We have decided not to go with you. It's your Terms and Conditions.

                      A : Oh. Wha.. wha... what in particular? I'm a Director in this company and am of course happy to discuss any aspect.

                      TBD : Well basically, it's the fees. The fact they are paid up front for the whole year. It's the extent of the fees. It's the fact there are additional fees everywhere. It's the fact you apparently take no responsibility for anything, however charge fees regardless. We are going to find a tenant ourselves.

                      A : Oh. So it's not just one thing. Like I say, we are happy to discuss anything.

                      TBD :To be honest, your company philosophy is so far from my expectation and experience as a Property Investor, I believe there is no point even starting discussions because we will never agree. We are simply in very different places.

                      A : Oh. OK. Well, if you any reason doing it yourself does not go smoothly, please phone us.

                      TBD : Oh yes.

                      I actually found myself offended by the terms and conditions. Actually upset. I couldn't understand how anyone would sign up, but I guess they simply don't read them.

                      The moral of the story is : The easiest way to get out of an onerous contract is to not get into it in the first place.

                      The Dog

                      Comment


                      • #12
                        Originally posted by The_Dog View Post

                        The moral of the story is : The easiest way to get out of an onerous contract is to not get into it in the first place.
                        Can't really argue with that.

                        Comment


                        • #13
                          Originally posted by The_Dog View Post
                          The moral of the story is : The easiest way to get out of
                          an onerous contract is to not get into it in the first place.
                          Ahh, the wisdom of hindsight . . . which Glenn's contacts
                          now know, only too well.

                          One devious thing that can be tried it to cross out
                          unacceptable clauses and initial them. I got away
                          with this, once, because the office functionary just
                          accepted and signed the piece of paper, without
                          checking!

                          When the bank (yes, bank) tried it on, later, I showed
                          them my copy and asked that they check theirs. There
                          was an embarrassed comment that the officer did not
                          have the authority to vary such contracts, to which
                          I replied, I have a contract duly signed and stamped
                          by one of your authorised officers. Deal with it.

                          They gave in.
                          Want a great looking concrete swimming pool in Hawke's Bay? Designer Pools will do the job for you!

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