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Updated about 8 years ago,
What are your rights when a lease is with property management co?
We recently listed for sale an investment property with 3 units cash flowing $2700 a month. All three tenants were 6 months into a 1 year lease. When we notified the management company of the impending listing we had to buy out the remaining 6 months of their fee and take over the management. There was a clause in our agreement that stated we had to list the property with them or buy them out. The leases were in the name of the management company. PM Co. sent a letter to all tenants notifying tenants they could be released from their leases. No where in our agreement or lease does it state this is an option. Then they proceeded to place the tenants in other properties they manage, some they may own. The buyer has applied for a commercial loan based on cash flow. Does anyone know the legalities of this? We have 9 other properties currently managed by this company. They claim they have to protect their reputation and a sale upsets the tenants. I can understand that and we agreed to only show the property upon inspection and not disturb the tenants as much as possible. It seems like they should be just as concerned with their reputation with the owners that pay them.