Property Manager isnt going to renew our contract

[Dave S.]

To get started, let me give you some quick history. 

1. I inherited this property manager when i purchased the property....New landlord at the time and didnt know all the ins and outs...and they were cheap. So i stayed with them
2. I was with them for almost 2 years. What they didnt know (and still dont know is that my wife and I were always looking for a replacement property manager or considering doing it ourselves.
3. Then comes a tenant whose dogs bit a contractor... the property manager immediately went to evict the tenant (they got my permission as this was the suggestion from the property manager...I havent been in this situation before)
4. After the tenant received a letter stating he had to get rid of the dog or get out of the house, he hired an attorney...he wasnt sure what the next step was (he has never been in this situation before). I took it upon myself to talk with the tenant and work things out...In short, nothing was filed, no records were filed for the dog, contractor is fine and I got a hold harmless letter between the tenant and myself with respect to the dog.
5. I received a letter from the property manager stating they are going to not renew our contract but "keeping" me as one till the end of the contract.
6. I sent an email stating Im providing 30 day notice to terminate the contract and  they are fine with that BUT is still going to charge me there percentage of the rent for the balance of the contract!

SO my question is, can they do this? I know that they wont do ANYTHING for me till then so why prolong this??? There is a statement in the contract stating..."This agreement will end at the ending date or if At least 30 days have passed since Broker has given Owner notice that Broker cannot provide management services for the property. No future fees will be due to broker in this circumstance". Do I fall under this statement since they provided me the above?? Should i even be worried about this as its <$1K? 

Thanks in advance