Maybe you thought that the expertise of a property management company would help you run your properties more smoothly and allow you to expand your business, but things didn't work out as planned. Now you want to end your contract before the proposed date, but are wondering how, and even if it is possible at all. Terminating a property management contract can be a tricky situation, but if you are not getting the results that you think you should be, stop spending money on the service as soon as possible.
Give Notice of Termination
Unless the property management company has made an obvious breach of contract, which would allow you to cancel their services immediately, you need to give them at least 30 days notice that you are bailing out. You also need to make the notice in writing, stating the specific reasons why you no longer want to hire them, even if they're not ones that are stated explicitly in the contract as reasons to break it. While reputable property management companies should offer a "satisfaction guarantee", some will want to be sticklers with the legalese, which means you will need to take further steps to break the contract. If you have given them a deposit, this can be even more difficult.
Pay the Fee
Many property management companies charge fees of several hundred dollars when you cancel a contract before it has expired. This money is used to pay for whatever costs, including extra employees or equipment the company had to invest into service your properties. In most cases, the exact fee amount will be stated clearly in your contract, although it can also be a variable amount or a percentage of your overall yearly charge. If you signed the contract, then you must pay the fee in order to terminate the agreement, unless your main reason for dropping their services is a specific contract-breaching action by the property management company.
Notify Your Tenants
When terminating a property management company, you need to let your tenants know what is happening, and whether there will be a replacement or not. Sometimes the fact that a property management company is used to maintain the rental is a positive factor in the tenant's decision to lease your housing option or pay the required rent. The termination of these services may amount to a change of the rental agreement in the mind of a tenant.
Ask For Copies of All Records
Before completely parting ways, ask the property management company for copies of all of the paperwork that they handled for you so that you have them in your records. Also obtain a copy of your agreement with them and the paperwork that accompanies the termination of your agreement.
Watch Out For Automatic Renewals
Think you are done with your property management company just because the length of time stipulated in the contract has run out? Not so fast. Many companies have automatic renewal clauses which mean that unless you notify them in writing of your cancellation, your contract continues for another set length of time. When terminating your contract with the company, even if the contract is over naturally, give notice in writing and keep copies of all paperwork involved.
Many times, there are issues between a landlord and a tenant that need to be resolved but are failed to do so, because both parties have gone too far with their actions, and have retaliated in the... More
Where there is a landlord, there will also be a tenant, and it is no surprise that these two parties can only work together once there is some sort of agreement, contract or a binding deal in place.... More
Many landlords find it difficult to write and draft a lease agreement. Since every State has its own general template, it can also be difficult to make sure your lease agreement meets all the criteria... More
When it comes to being a landlord, one should know that it is not for the unprepared individual. This should be clear that being a landlord does not simply mean that you will be taking the rent and... More
Becoming a landlord is a major deal and no one can simply get up and think, “well, yes I think I should be a landlord and rent out my flat.” If you are thinking that you would like to be a landlord,... More
If you’re a landlord and want to manage your business in a better way, you should endeavor to get in touch with those industry experts who have the experience and the skills to help you do it. This is... More
Landlords and aspiring landlords, do not become as such, without guidance and advice. There is a lot that goes into being a landlord nowadays; in fact, there is so much to learn that it often confuses... More
Renting out an apartment or a house can become a constant revenue source for landlords, but at the same time, it gives rise to several problems. It is a fact that high standards, a strict lease... More
If you are currently thinking of becoming a landlord only because it helps you have a constant stream of income, you should think twice. It’s not that you should not consider offering your property... More