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Updated over 8 years ago on . Most recent reply
Disagreement w/ Property Manager
Was wondering if I could get some help on dealing with my Property Manager. I have been under contract with my property manager for almost 1 year and have decided that it's not worth the money to continue doing business with them. I have notified them that I will not be renewing the contract with them for 2017 and they proceeded to tell me that THEY WILL REMOVE THE TENANT from the house if I do not renew with them. We've gone back and forth and I've told them that the tenant is not the problem, and I'm not asking the manager to renew or to terminate, I'm just asking them to basically do nothing until the end of my term with them. I was planning on contacting the tenant directly and letting them know I was the new landlord and they would be dealing with me directly.
Essentially, what it comes down to is the contract language. The manager sent me this language that supposedly states that if I do not continue with them, they will either 1) kick the tenant out, or 2) charge me a finder's fee equal to 1 month's rent. Here is the contract language:
"It is agreed that if Owner exercises the right to cancel this agreement, then Owner shall be responsible for any and all commissions earned or unearned on any existing lease or extension thereof. Owner shall owe Agent commission so long as tenant remains in possession."
The way that I interpreted this section is that if I were to cancel with them, I'd owe commission until the end of the 1-yr term. They are saying that's not the case - that I would owe them for another year, if the tenant stayed. Are there any attorneys out there, or even landlords that have experienced this before who can give me their OPINION (not legal advice) on this? I've told them all this seems really icky, that they would actually kick the tenant out just because I (the owner) don't renew with the management company. Seems like punishment to me. Please let me know!
Thanks to all!
Most Popular Reply
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The lease agreement is between you the owner and the tenant. While a typical lease agreement may grant the property manager the ability to sign in your behalf, it does not make them a party to the contract. Therefore, they do not have unilaterally decide to terminate the lease agreement .
I would notify them in writing by email and follow up with certified mail of your desire not to terminate the existing lease. Additionally, notify them of your intent to terminate the agreement along with all records and accounting to be delivered to you with 10 days. Also state the any deviation from your directive will result in a complaint to the state real estate commission
I see no way that a management agreement allowing the management company to terminate a tenant unilaterally would hold up in court