Why landlords stay with agents they're unhappy with
It's one of the most common things we hear from Inner West investors: "I know I should switch, but it all seems too complicated." The truth is, the mental barrier is far larger than the practical one. Property managers change all the time — it's a normal part of the industry — and most agencies have a straightforward handover process precisely because it happens so regularly.
The costs of staying with the wrong manager are real: prolonged vacancies, deferred maintenance, poor tenant selection, and missed rental increases all chip away at your net return every single year. Getting this right is worth the effort.
Quick tip
Before you do anything else, dig out your current Property Management Agreement and find the notice clause. This single piece of information determines your timeline for everything that follows.
The step-by-step process
Here is how a typical switch works in NSW, from the moment you decide to change to the day your new manager takes over.
Check your management agreement
Your Property Management Agreement (PMA) will specify how much written notice you need to give to terminate the arrangement. In NSW this is typically 30 days, though some agreements require 60 or even 90 days. Check whether your property is currently tenanted and whether a fixed-term lease affects your timeline.
Find your new property manager first
Don't give notice until you have a new agency ready to take over. Interview at least two or three managers, ask about their current vacancy rates, how many properties each manager handles, and exactly what's included in their fee. Once you've chosen, confirm they can accept a new management starting on your handover date.
Give written notice to your current agent
Send a formal written notice (email is fine, but keep a record) stating that you wish to terminate the management agreement, referencing the notice period required under the agreement. Keep the tone professional — you may need their cooperation during the handover.
Sign with your new manager
Sign the new Property Management Agreement and provide your new manager with the handover date. They will send an Authority to Transfer to your outgoing agent, requesting the release of all files, keys, bonds, and tenant information. In most cases your new manager handles this process entirely on your behalf.
The handover happens
Your outgoing agency is legally required to transfer your tenant's bond (held with NSW Fair Trading), all lease documentation, condition reports, keys, and maintenance records to your new manager. Your tenant will receive a formal letter advising them of the change and providing the new agency's contact details and payment information.
Confirm the details with your new manager
Once the handover is complete, confirm with your new manager that they have received everything: bond transfer confirmation, signed lease, condition report, maintenance history, and keys. Request a brief introductory call so you're both aligned on your expectations going forward.
Notice periods explained
NSW does not prescribe a mandatory notice period for terminating a Property Management Agreement — it is whatever is written in your contract. The most common arrangements are:
- 30 days written notice — the most common, used by most mid-size and boutique agencies
- 60 days written notice — sometimes required by larger franchise networks
- End of fixed term only — some agreements tie termination to the lease renewal date; read carefully
If your agreement has no notice clause at all, 30 days is considered a reasonable standard in NSW. If you're unsure, NSW Fair Trading can provide guidance at no cost.
Important
If your property is currently tenanted, switching managers does not affect the tenant's lease in any way. Their tenancy continues uninterrupted — only the management contact details change. Tenants are often reassured by this.
Are there any costs involved?
Depending on your agreement, your outgoing agent may charge a letting fee or administration fee for processing the termination and transfer. These are not always enforced, but you should check your PMA. Typical charges, where they apply, are:
- A flat administration fee of $100–$300
- A prorated management fee for the final month
- In rare cases, a break fee if you're within a fixed-term management agreement
Your new agency does not typically charge you anything upfront. Their fees commence once they begin managing the property.
What to look for in your next property manager
Switching is only worthwhile if you end up with someone better. Beyond fees, the questions that matter most are:
- How many properties does each property manager personally handle? (Under 100 is a good benchmark — above 150 and attention suffers)
- What is the agency's current vacancy rate across their portfolio?
- How do they communicate with landlords — email, phone, portal, or all three?
- What is their process for tenant screening and reference checking?
- How quickly do they respond to maintenance requests, and do they have preferred tradespeople?
- Do they conduct routine inspections, and how frequently?
A good property manager will welcome these questions. If they can't answer them clearly, that tells you something important.
Ready to make the move?
If you're based in Sydney's Inner West, we can connect you with a local property management specialist for a no-obligation conversation. It costs nothing and takes 60 seconds to get started.