When an investor engages a managing agent, they usually give the agent an ‘Authority to Manage Residential Premises’ for a set period of time, usually two years.
If you want to cancel this authority before that time has elapsed, the managing agent could claim damages as result. However, this is rare, especially if the agent has underperformed.
Generally you can change agents without penalty only if the agent has:
- done something wrong
- done their job inefficiently, such as left the property vacant or let the property’s condition deteriorate.
Some agents, like Bourkes, have a service guarantee. If the client isn’t 100% happy, they have the right to sever all paperwork and walk away without cost (which is a rare event).
If your agent has such a guarantee, you should be able to terminate the management agreement and walk away without stress.
If they don’t have a guarantee, you may have to threaten action (i.e. if they don’t sever the relationship, they will get bad publicity on social media or poor reviews on Google). But it would be a shame if it came to this.
If the agent does allow you to sever the relationship, get it in writing. Ask to be released from the ‘Exclusive Managing Agency Authority’ and have the managing agent acknowledge that the authority is at an end.
Once you get written confirmation, you’re free to choose another real estate agent. Hopefully it will be Bourkes!
If you have more queries about working with a managing agent, contact Alan Bourke or anyone from Bourkes on (08) 9474 2000.
