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!

[David Faulkner]

If you need to cut off the relationship, then do it ASAP. Give them written 30 day notice that you are terminating the property management contract. Pay what fees you need to in order to get out if they are bad. Whether you owe one month's rent or nothing should not change your decision on if you terminate or timing. In the future, determine what these fees will be and are clear on the other details BEFORE you enter the contract. The manner in which a PM structures their contract and fees can give you a lot of insight as to how they operate.