Letter from property manager

[Charms]

Hi there,
Just need some advice about whether or not I need to do anything about this letter from my property manager.

Basically, the letter says " We are arranging that all rents will be paid into a Trust account managed by Oxygen Property Limited. This will be done at no cost to yourselves, but will give you peace of mind that the rents are independantly looked after. Oxygen will also deal with properties that become vacant but they will do this free to the landlord. We will then be able to concentrate on managing your property. The only noticeable changes for you will be that your payments will come from Oxygen Trust Account rather than ours."

Who will our "contract" be with?? Shouldn't we have been consulted in some way?
All advice gratefully received.
t
Thanks
Charms

[Keys]

Oxygen Property Limited

Oxygen Property Management Limited

Is your PM the management company?

[Charms]

Our property manager runs/owns a company called Property Direct, this is the company we have a signed contract with to find tenants, collect rent etc etc. He also now works for "Professionals" and I think.... Oxygen Rentals is a subsidary of Professionals... not 100% sure about that though. If so, then there is definately a "vetted interested". Not sure that is a problem but just wondered where we stand with regards to not having a signed contract between this new company that is now collecting rent and possibily vetting new clients for us in the future.
Thanks
Charms

[Green Fish]

The tenancy contract is between you and the tenant.

There is also a separate agency contract between you and Oxygen.

[Perry]

Orion recently mentioned that he uses
Oxygen. Perhaps a PM to him might
yield some useful information? If it
gets bad, PM me and I may be able
to suggest an alternative, if your
rental is in the Napier-Hastings area.

Always a niggle when such things
occur and are reported 'after-the
fact,' isn't it?

[Charms]

I haven't actually signed anything with Oxygen, does it just carry on from the fact that I was signed up with Property Direct that have now given that part of the service to Oxygen.? Perry, the property is in Upper Hutt, where I live but thanks for the offer of a new PM.
Charms

[Green Fish]

Technically, it looks like an assignment from one entity to another.

If so, then having received notice of the assigment, you have to pay the commission to the assignee. But the assignor is still liable to you under the PM contract.

[Charms]

Greenfish, could I have that in simple english please??
So far, no one has asked me to pay for anything, commission or otherwise.

[Green Fish]

"Assignment": Assume that X owes Y $100. Y can "assign" the debt to Z, by giving notice of the assignment to X. Upon receipt of the notice, X must pay $100 to Z, instead of Y.

It looks like you entered into a property management contract with "Property Direct", under which Property Direct would provide you with a service in exchange for commission.

Property Direct can assign your debt re commission, by giving you notice. In that event, you have to pay the commission to the entity nominated by Property Direct.

It appears that Property Direct might have assigned your debt to Oxygen Property Ltd, although if that has been done, there should be an unequivocal statement to that effect.

If there has been an assignment, then you have to pay commission to Oxygen Property Ltd., but Property Direct remains liable under the property management contract. It can only assign the benefits of the property management contract (ie, the right to receive commission), but not the burdens (ie, the obligation to manage the property).

So to answer the original question, your contract remains with Property Direct. If Property Direct wants to change that, you have to consent. This is known as a "novation" - and no such thing appears to have occurred in your case.

[Charms]

Thanks for that Greenfish. Much clearer now. From you have said, I assume that yes, Oxygen will take the commissiion out of the rent before they pay the balance into our account.
My concern is who is now responsible for taking tenants to tribunals etc should that need to happen?