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What You Need to Know About Switching Property Managers

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    Contrary to popular belief, changing property managers is neither expensive nor complex. There are many misconceptions about when and how to switch property managers, which causes owners to grit their teeth and put up with subpar service while counting down the days until their contract expires or their tenants vacate. However, this isn't need to be the case.

    Avoid being forced to work with a poor property management! If your property manager isn't doing a good job and isn't fulfilling the obligations outlined in your agreement, it could be time to look into switching. It's a two-way street, after all, so there's no reason to use some of your rental income to compensate for subpar service.

    Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.

    Common misconceptions about switching

    Among property owners, some of the most prevalent myths include the following:

    • I can't swap property managers till the current tenancy is over.
    • It will significantly alter and disrupt my tenant.
    • I'll need to find new occupants for my rental property.
    • My tenants will have to sign a new lease.

    Property owners frequently believe that if they change property managers, their renters will be inconvenienced. The shift may result in happier tenants if a property management has a competent transition strategy that takes the wellbeing of the tenants into account.

    The truth about switching

    Changes in property managers can be made whenever you're ready, with little inconvenience for you and your renters. Do not worry if you are concerned that you may inconvenience your tenants. The relationship between you and your present property manager is the only one that is terminated by the property management contract; your relationship with your tenant remains intact. So you can relax knowing that nothing will change, simply that the property manager will be much better.

    Depending on the state you're in, many property management companies normally have a notice period before cancelling an agreement that can range from 30-90 days.

    How to know when it's time to evict your tenant

    "Difficult tenants." Even the most seasoned owners of investment properties will shiver when they hear these two words because of their potent impact.

    You might have a tenant who habitually pays their rent 20 days late or who constantly bothers the charming couple that live next door. What you can do if you ever find yourself in such circumstance can have you wondering. In any case, if a renter is causing you enough trouble, eviction may be your best option.

    In this post, we'll discuss the justifications for legally evicting your renter as well as outline the steps involved so that you have a clear understanding of what happens. Of course, we haven't overlooked important information like tenants' rights, expenses to take into account, and resources for assistance.

    You will have the confidence and tools needed to handle your tenant eviction by the time you finish reading this article.

    Tenant eviction justifications

    It is essential to be open and honest about the reasons behind evicting a tenant, despite the fact that there are numerous acceptable arguments. Why?

    First, you need to make sure the issue is serious enough to warrant an eviction. In the event that it is not, you run the risk of getting on the incorrect side of the judge in court. In addition, you are required to follow a specific set of regulations that are specific to the reason that you were kicked out of your apartment.

    In this part of the article, we will go over the many justifications that might be used to evict a renter.

    most typical grounds for evicting troublesome renters

    1. Failure to pay rent

    This reason is the most common one that we hear from owners when we are helping them evict troubled renters from their properties. It is more likely to be a recurrent issue for the proprietor than a singular incidence in the vast majority of cases.

    According to property manager Shannyn Laird, who has more than 15 years of experience in the field, it is vital to investigate and try all alternative options before turning to eviction as a last resort. This suggests that your property manager would have attempted to communicate directly with your renter in order to find a solution or to negotiate a payment schedule in order to resolve the problem.

    If the matter cannot be resolved through conversation, you may have no choice but to evict your renter.

    2. Failure to keep the property up to date

    It is the obligation of your renter to take reasonable care of your property so that you do not have to deal with a large number of issues related to the upkeep of your rental property. If they have made changes to the property without your consent or if they have caused damage as a result of their irresponsible or malicious behaviour, then it is possible that you will need to evict them.

    3. Breach of contract

    When you signed the leasing agreement, it's probable that you and your renter reached a consensus on a number of things that were important to both of you. In the event that your renter consistently violates any of the aforementioned agreements, you may discover that you are forced to evict them.

    Examples of typical violations of agreements include the following:

    • Nuisance (e.g. disturbing the neighbours)
    • Subletting without your consent
    • Non-payment of utility charges
    • Bringing animals onto the property without permission
    4. Taking part in illicit conduct

    Assume for the sake of argument that you have more than sufficient justification to evict your tenant because they are engaging in illegal behaviour at your property. These are the components:

    • Employing the place for malicious reasons and objectives (e.g. drug manufacturing, storing stolen goods)
    • Threats, coercion, harassment, and abuse
    • Domestic abuse

    Owner justifications for eviction

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    If I wish to sell the property, am I allowed to evict the tenant who is currently living there? is a question you may have.

    In point of fact, there will be occasions on which you will require the eviction of a tenant for your own personal reasons. This could be the case if you just sold your property and the new owners want it cleaned out, or it could be the case if you need to seize the property and put it into your own possession. The owners have the legal right to terminate the tenancy at any time, with or without providing a reason. Having said that, you are required to provide advance warning to your tenants.

    You'll find more information on this topic in the section that comes following this one, which discusses the process of evicting a renter.

    The process of evicting a renter or a co-tenant is mapped out

    1. Sending out the notice

    Due to the myriad of legal complexities that are involved in the eviction process, there are a few essential considerations that must be kept in mind while delivering a termination notice to your tenant. This notice is also known as a Notice to Vacate.

    It is imperative that you provide the required amount of advance notice.

    Notice periods can be quite difficult to navigate for landlords who are attempting to evict a tenant on their own. Depending on the state in which you reside, there are a variety of notice requirements that must be met for additional grounds that can justify an eviction.

    In general, you should plan on sending a notice of eviction to the tenant for a period of seven to fourteen days for non-payment of rent and contract violations, and at least forty-two days for termination with no stated reason. Remember that in certain situations, you are required to serve a Notice to Remedy to the offence before issuing a Notice to Vacate. This is something that you should keep in mind.

    We have created a list of resources that are organised by state in order to assist you in making a decision regarding the amount of notice that you should send to your renter.

    Ensure that all pertinent information is included in the notice.

    The following details must be included in the notice, which must be in writing:

    • The property's address
    • Name of the owner in full and trading name
    • The tenant's entire name (s)
    • The reasons for termination, if any
    • When the lease will end will be determined on
    • The landlord's or property manager's signature

    Forms that can be beneficial in the process of serving termination notifications have been provided by several state agencies. The following is a list of websites, along with links to those websites, from which you can print off an eviction notice from the landlord and present it to your tenant:

    Make sure that the notification is served in compliance with the regulations that apply in your state.

    Again, laws in each state differ regarding the manner in which you are required to provide the information to your tenant. It is permissible to place a notice in the mailbox of your tenant in New South Wales; however, the regulations in Victoria require that you deliver a notice in person, send it by registered mail, or communicate electronically with your tenant provided they have given their consent. In New South Wales, it is acceptable to do so.

    No matter where you are, the way of serving the notice that involves personally giving it to the tenant is the one that is the safest and most reliable. There is also the option of sending the package through registered mail; however, you will need to take into consideration the postage dates.

    When it comes time to hand in your notice of termination, it is absolutely necessary to check everything three times. If you omit any essential information, the tenant may argue the lease termination on the grounds that the notification was improper. This is true even if you provide all of the other information that is required.

    2. Making a Tribunal application

    In the event that your tenant does not vacate the property by the date specified on the termination notice, you need to submit an application to the Tribunal in your state. You are required to use the service within a certain period of time following the termination date that is indicated on the termination notice; once again, this period varies and can be anywhere from two weeks to thirty days depending on the state in which you live in Australia.

    We have provided you with helpful links to each state's authority website in order to provide you with further information that will assist you in understanding the varied standards that are imposed by each state:

    3. Going to the Tribunal

    You or your property manager have the option of acting as your representative on the day that has been set aside.

    In order to make a case that is compelling, you should keep detailed records of the termination notice, how it was delivered, your behaviour and that of your renters in relation to the tenancy agreement, proof of rent payments, and any other documentation that can support your case.

    If the court rules in your favour and provides a date by which the renter must vacate the premises, the Tribunal will issue a termination order, which is also known as a possession order. This order requires the renter to vacate the premises by the specified date.

    4. Removal of the tenant

    Following the issuance of the termination order, your tenant is required to depart the premises within the time frame that has been set by the Tribunal. If they don't, you have the option of asking the Tribunal for a warrant, which is referred to as a Warrant of Possession in the majority of jurisdictions. This warrant gives law enforcement officials the authority to remove the tenant from your property; for example, the sheriff in New South Wales, the police in Victoria, and the bailiff in Western Australia.

    Unlawful evictions

    You should never try to forcibly evict your renter, even if they haven't departed by the termination date, whether by changing the locks or shutting off the utilities, as this could result in legal action against you. Instead, you should try to negotiate a peaceful resolution to the situation. In order to ensure that the eviction is carried out in accordance with the law, you must first get a termination order as well as a warrant of possession, and then you must rely on the authorities to really carry out the eviction.

    What protections do tenants have against eviction?

    When dealing with difficult renters, it is important not to lose sight of the fact that tenants have rights that must be honoured both before and after the eviction process. It is easy to lose sight of this fact.

    What kinds of legal rights do tenants have, and how might those rights affect you?

    You are undoubtedly already familiar with tenant rights, which protect tenants from having their rent increased by an unreasonable amount and require landlords to handle urgent maintenance issues.

    In this part of the article, however, we will talk about a few more tenant rights that may have an effect on how well the eviction occurs.

    1. Continuing to be present after the date of termination

    Tenants have the option of remaining in the unit beyond the termination date that was outlined in the notice that was provided to them by either you or the property management company. They are under no legal obligation to leave your property unless the Tribunal issues a termination order and a warrant of possession to evict the renter from your property in order to reclaim possession of it.

    2. Rent obligations

    If a tenant vacates the rental property earlier than the termination date, they are typically just responsible for paying rent for the day in question. The only circumstance in which this is not the case is if the individual was a tenant on a lease with a defined duration; in such a scenario, it is customarily expected of them to continue paying the rent until the end of the period of time that was stipulated.

    3. Final inspection and bond money return

    Imagine for a moment that the Tribunal did not make any orders specifically addressing the bond. In that case, you are obligated to provide the tenant with a copy of the vacating condition report as well as a reasonable opportunity for them to take part in a final routine inspection. After reaching an agreement with the renter over the total amount of money that is owed, the following step is for you to make a request for a refund of the bond money to the proper authorities in your area.

    4. How does COVID-19 influence tenants' rights?

    As a result of COVID-19, state governments have imposed new limits on landlords attempting to remove tenants for rent arrears. The COVID-19 residential tenancy ban on evictions is described here:

    NSW tenancy moratorium

    VIC tenancy moratorium

    QLD tenancy moratorium

    How much it will cost you to evict your tenant

    Because the process is so difficult and complicated...

    How much does it cost to kick a tenant out?

    Let's analyse it.

    The initial cost is the application fee required by the Tribunal, which can range anywhere from $26.95 in Queensland to $162 in the ACT. Putting in an application for a Warrant of Possession will set you back an additional $114 if you are a resident of Victoria. If you live in New South Wales (NSW), you will be expected to pay a fee for the enforcement of the warrant.

    Would you like to speak to a specialist? Book a complimentary discovery session by calling: (03)999 81940 or emailing team@klearpicture.com.au.

    If you decide to hire a property manager later on, and that manager does not include rental eviction and Tribunal fees in their normal pay, you may wind up spending hundreds of dollars more to evict your tenant than you would have otherwise.

    At this point, you might want to think about how to find a qualified property management company that will not charge you additional money to evict a renter and that has a good reason not to remove a tenant.

    Your Transition Checklist
    1. Contact Information. Make sure to get your tenant's contact information so that you can tell them that you are the new property manager. ...
    2. Lease. Hopefully, the tenant will have a lease agreement. ...
    3. Move-In Documentation. ...
    4. Tenant Ledgers. ...
    5. Keys. ...
    6. Security Deposit. ...
    7. Tenant's Application. ...
    8. Timing.

    Yes. he way your property management company is managing your building or you simply hold the majority of the value in your building and want to control the way it is being managed, there are plenty of options available for you if you wish to change your property management company.

    Poor property maintenance

    Good property maintenance is key to keeping your landlord's investment property in tip-top condition and retaining great tenants. ... It's a surefire way to get your landlords to change property managers! Your landlords have entrusted you with the upkeep of their properties.

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