Getting out of a Property Management contract??

[Steve S.]

I have a tenant that is choosing to move out at the end of their lease term.  I believe, from how I interpret my property management contract, I don't have to pay anything to sever the relationship with the property manager if I were to sever the PM relationship at the time the current tenant moves out (and i could begin marketing the property ahead of time as well).  Would you agree?  Here's the verbiage:

FEES UPON TERMINATION.  At the time this agreement ends, Owner must pay Broker:

A. All amounts due broker under this agreement and

B. If the Property is leased to a tenant on the date this agreement ends and Owner terminates the agrement, an amount equal to the lesser of:

(a) the management fees that would accrue over the remainder of the term of the lease or

(b) One Month's rent

If more than one property or unit is made part of and subject to this agreement, this paragraph applies only to those properties or units then leased and applies to each property or unit separately

Let me know your thoughts.  Thanks!

[Steve S.]

Could you not have ridden it out to save the money or was it cheaper to pay them to leave?

Originally posted by @Sankar Reddy:

@Steve S. I have properties in DFW area managed by a bad PM. Recently I got out of their contract after 20 months with them. Unfortunately I didn't have any amount in the B. (b) and I ended up paying the PM company ~$5K as they charged fee for reminder of the lease for all 11 properties leased at that time :(

Learning lessons, and asked new PM to take that clause out completely to sign.