Property Management Cancelation

[Tim Santeford]

What are reasonable or normal cancelation fees for property managers?

I'm looking a property management agreement for the first time and the company requires a 12 month lease with the an early cancellation fee of one months rent. Additionally, if the property were to be sold to the tenant they placed, the owner is required to pay 6% commission on the sale price. Being new to this, these seems like very steep penalties for two common occurrences.

Thanks!

[John Warren]

@Tim Santeford I am not sure I would go for either of those two items. I believe we have a 60 day cancellation clause with our PM, and we do not have a clause in our contract that forces us to sell through/pay commission to the PM at sale. I think you can definitely push back on the commission part in particular. The 12 month lease is debatable as arguably you won't know if they are doing a good job or not for 6-9 months. I am not sure it would be worth your time to change at that point anyways.