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Termination Of Property Management Agreement

Having a dispute with a tenant or landlord? Rental Law discussion

Termination Of Property Management Agreement

Postby Halfburinn » Wed Nov 30, 2016 2:39 pm

I have a duplex in Florida that has been managed by a property management agency for eight years. This past year, I have not been very happy with their services. There were several months where I did not receive full rent from my tenants. When asked, the PM just said that the tenants simply could not afford it this month ect... and hope to "cover" it the following month. But it keeps going on for several months. Then both my tenants moved out due to an eviction and another lack of rent payment. For three months, the PM could not find any tenants. I decided to put matters into my own hands and did my own advertising and found several potential tenants on my own, doing my own showings. I decided that I want to manage the property myself, since the PM wasn't meeting my expectation.  I had asked the agent I have dealt with about terminating the contract, but he stated that because it was an "exclusive property management agreement" I have to pay him either the first month rent for securing the tenant. even though I was the one who found the tenant and showed them the property. All the PM did was draw up the lease and do the background check. He also said that I have to continue to pay the PM a fee as long as the tenant reside in my property. However, I do not find such statement in the agreement. In the agreement it stated " Owner gives Broker the exclusive right to manage the real and personal property described below beginning april 2000 ending---until cancelled---except that either party may terminate this agreement by giving-----calendar days written noticed to the other party by certified mail." "For managing the property, a fee of: 10% of rent due in each rental period to be paid as rent is received"

I PM said he was sending my a new lease for the new tenant that I had brought in. Should I sign the lease or wait till I terminate my contract with the PM and draw up a new lease? Is it correct that the PM is still entitle to a fee as long as the tenants stay even if it doesn't state that? On property is unoccupied, so if I cancel the contract and later found a tenant, I shouldn't have to pay them a fee right? They said its for their advertising and other fees. Please Help, what should I do? Should I just sent them a letter to terminate it? thank you for your help.  
Halfburinn
 
Posts: 47
Joined: Sun Jan 12, 2014 10:31 am

Termination Of Property Management Agreement

Postby Gaukroger » Thu Dec 01, 2016 6:45 pm

I have a duplex in Florida that has been managed by a property management agency for eight years. This past year, I have not been very happy with their services. There were several months where I did not receive full rent from my tenants. When asked, the PM just said that the tenants simply could not afford it this month ect... and hope to "cover" it the following month. But it keeps going on for several months. Then both my tenants moved out due to an eviction and another lack of rent payment. For three months, the PM could not find any tenants. I decided to put matters into my own hands and did my own advertising and found several potential tenants on my own, doing my own showings. I decided that I want to manage the property myself, since the PM wasn't meeting my expectation.  I had asked the agent I have dealt with about terminating the contract, but he stated that because it was an "exclusive property management agreement" I have to pay him either the first month rent for securing the tenant. even though I was the one who found the tenant and showed them the property. All the PM did was draw up the lease and do the background check. He also said that I have to continue to pay the PM a fee as long as the tenant reside in my property. However, I do not find such statement in the agreement. In the agreement it stated " Owner gives Broker the exclusive right to manage the real and personal property described below beginning april 2000 ending---until cancelled---except that either party may terminate this agreement by giving-----calendar days written noticed to the other party by certified mail." "For managing the property, a fee of: 10% of rent due in each rental period to be paid as rent is received"

I PM said he was sending my a new lease for the new tenant that I had brought in. Should I sign the lease or wait till I terminate my contract with the PM and draw up a new lease? Is it correct that the PM is still entitle to a fee as long as the tenants stay even if it doesn't state that? On property is unoccupied, so if I cancel the contract and later found a tenant, I shouldn't have to pay them a fee right? They said its for their advertising and other fees. Please Help, what should I do? Should I just sent them a letter to terminate it? thank you for your help.  
Gaukroger
 
Posts: 53
Joined: Mon Feb 24, 2014 5:06 pm

Termination Of Property Management Agreement

Postby Ashbie » Fri Dec 02, 2016 2:17 am

Most agreements have a buy out, or termination fee. A clause which tells you what you must pay if you terminate the agreement before it's expiration.

If there is no such clause, then I would read the rest of the agreement looking for clauses that state other terms. Perhaps there are requirements that they are due the management fee for the remainder of the lease. If it is not spelled out in the agreement, then I expect they haven't much to go on.

Doing your own advertising is risky and we are very particular about not letting our clients do that. There are so many words and phrases that are forbidden in advertising that it is a very risky endeavor.

I would definitely serve them notice as required by the agreement. But unless it is in that document, I doubt you owe them much beyond that. laws differ state to state, but that agreement is what your relationship is based on. You finding the tenant, does not negate the terms of the agreement. Exclusive is just what that means. Most of the time the agreement will also state something to the effect that "no other agent or individual shall...". That means you too.

If you're up to it then serve them notice and take over the management, but if they did the background checks and wrote the lease, they are due something for that work. If they did not spell out what that is in the agreement, then you have the upper hand.
Ashbie
 
Posts: 45
Joined: Sat Jan 04, 2014 11:30 pm


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