Management Agreements

[Macy]

When a property is vacant, can more than one PM work to find a tenant for it? I have been approached by a landlord to help him secure a tenant, it has been vacant for a month. The existing PM has had the property for a year before the existing tenant moved out and had an exclusive management with this landlord. The landlord wants us to both work on it and whoever secures a tenant gets the management.

So he wants me to work on securing a tenant without a management agreement. Is that normal practice in NZ? Thanks for your help.

[Keys]

How would you handle signing a tenant up for the property to move in on (say) July 7th, only to find you can not comply with Section 37?

Wouldn't that be fun? Especially if you signed them for a Fixed Term Tenancy. How does your budget run to the consequences of that?

IMHO. Don't do it.

[Macy]

Not sure what you mean Keys..
My question is when a property is vacant, does that void the existing Property Managers exclusive management with that Landlord allowing another Property Manager to also look for a tenant?

[erinak]

Hi Macy. The landlord can ask for any Property Manager at any time to review and quote then work in with them (LL). It is up to the Landlord to choose and it does need to be documented.

[Keys]

Not sure what you mean Keys..

Two property managers are trying to get tenants, at your request.
Two tenancies are signed up to occupy one property. Who do you think will foot the bill for this particular problem? This also begs the question. Why would you ask? You are supposedly doing this for a living or charging people to do it?

[erinak]

Yep like Macy, not sure what you mean Keys. Way I see it Macy is just wanting a straightforward answer. Simple, not convoluted. Good grief.

[Sportsvee]

I think the issue Keys is trying to bring to your attention is:
2 property managers are tasked with finding a tenant for 1 property.

What happens if BOTH managers sign 2 sets of tenants for the one property at the same time? Do you think the PM will foot any cost/liability for the tenant that doesn't ultimately get the property?

Therefore, is that a cost/risk you are willing to take? How would the TT look upon 2 bonds being lodged for 1 property?

Not a situation I would want to create.
Is the above about right Keys?

[Keys]

At last, someone who takes a little time to read the link I posted and think about it.

So, for Macey I will explain.

You are hired by the owner to get a tenant and you do so. However, the owners "usual" PM now finds a tenant and places them "before" your tenant moves in. Unfortunately, you have signed your tenant up for a one year fixed term tenancy. You are unable to provide vacant possession to your tenant and could, therefore, be liable for all costs incurred by your tenant to solve their housing problem. Gosh, imagine if it was on transfer from another city??

Erinak. Look to the last three words on my first post on this thread. How convoluted is that?

[Macy]

Erinak thank you for your response. Keys I’m not sure if you are being sarcastic, maybe your style of humour is lost on me but you are rude and as a newbie to this site I find it disappointing.

I am very aware of the ramifications in relation to what you have said about the tenants, hence my question. I am not new to Property Management but new to it in this country, where some of the legislation and rules differ.

I simply asked as I wasn’t sure if this was a common practice in NZ. For your information Keys I actually turned the LL down.

I came onto this site as I thought it would be a great resource and I would be part of a community that are here to share ideas and inform each other. I have been a trainer for nearly 15 years and would never belittle anyone asking my advice or a question.

But thank you to those of you who helped with my question, much appreciated.

[erinak]

I get that, but what chances of one property at the same time for tenancy?? Highly unlikely albeit risky for the LL and PM but as PM I would
ask the Landlord (me) to clarify/stipulate that in writing, as I said in my earlier post.

From experience: After two months of self advertising and 2 very keen PM's who offered their services, I accepted both with the very same criteria to both that we all agreed that we work in together and it was transparent, so it made the whole dilemma (for me) a lot more bearable.

Worked a dream for me and a happy ending all round in that we are good friends after 4 years. How cool is that!

I think the issue Keys is trying to bring to your attention is:
2 property managers are tasked with finding a tenant for 1 property.

What happens if BOTH managers sign 2 sets of tenants for the one property at the same time? Do you think the PM will foot any cost/liability for the tenant that doesn't ultimately get the property?

Therefore, is that a cost/risk you are willing to take? How would the TT look upon 2 bonds being lodged for 1 property?

Not a situation I would want to create.
Is the above about right Keys?

[sidinz]

From experience: After two months of self advertising and 2 very keen PM's who offered their services, I accepted both with the very same criteria to both that we all agreed that we work in together and it was transparent, so it made the whole dilemma (for me) a lot more bearable.

Worked a dream for me and a happy ending all round in that we are good friends after 4 years. How cool is that!

Your situation is different as you didn't already have a contract with a PM, which will have some sort of notice period built into it. As for unlikely.....stranger things have happened.


P.S. You are new here, so I won't say what I really think of your first post in this thread. I will limit myself to saying that Keys is the PM guru here. He is long-standing, extremely knowledgeable and generous with that knowledge. Therefore well respected.

[Sportsvee]

I get that, but what chances of one property at the same time for tenancy??

Wellington, in January, I would put money on it happening.

Don't remember where you said your property was, but if it's desirable, then there will be multiple interested parties. Still demand out there.

[erinak]

That's quite OK Sidinz.
It's called freedom of speech I believe and on this site I see "no-holds-barred" how some of them express themselves to boot. So no offence is taken. Cheers

Your situation is different as you didn't already have a contract with a PM, which will have some sort of notice period built into it. As for unlikely.....stranger things have happened.


P.S. You are new here, so I won't say what I really think of your first post in this thread. I will limit myself to saying that Keys is the PM guru here. He is long-standing, extremely knowledgeable and generous with that knowledge. Therefore well respected.

[erinak]

Macy said the property had been on the market for a month, hence LL asking another PM for help as I read it. Don't know where the property is.

Wellington, in January, I would put money on it happening.

Don't remember where you said your property was, but if it's desirable, then there will be multiple interested parties. Still demand out there.

[Keys]

I am not new to Property Management but new to it in this country, where some of the legislation and rules differ.

Did you read the link I provided?