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Updated over 5 years ago, 03/30/2019
PM dumped debris in backyard after renovating unit. Time to go.
Hey BP! Need some advice on best way to break contract with PM and what to expect.
Final Straw:
Retained PM about 6 months ago for some rentals. Things have gotten progressively worse with the final straw being that he/his crew dumped sink/trash/rugs/mattress/furniture in the backyard, right next to the house, after renovating a unit. This was two months ago and unfortunately I just discovered it this week. PM offered no explanation except disposal was expensive and not included in the itemized quote for the reno (it was included). There are also many other issues, some of which breach the agreement in terms of monthly draws and statements. I have memorialized my complaints via email, saved text messages, and photographs and notified him of all of these issues.
The Agreement:
The PM agreement is for one year and we're about halfway through it. There is no liquidated damages provision (i.e., owner must pay for all management fees through the end of the contract, or anything like it). Mediation is the primary mechanism for resolution though some select items can be brought directly into probate-- (mechanics lien, foreclosures) none of which are at play right now.
Strategy:
My primary objective is to just cut my losses, get my rent and deposits back, and move on. My plan is to finish resolving a cap-ex project we're involved in right now and then break up by:
1. Calling the PM (probably email because there's a .001% chance he'll answer) to discuss my issues and amicably propose that it may be in both of our interests to end the arrangement (PM has expressed interest in changing careers in next few years, extremely busy with personal matters that he's turning down new business).
If he protests or threatens some type of action, then
2) I will inform him in writing that the contract is over as of XX date due to (itemized list of his breach of contract), I will be filing complaints with various local private and governmental entities, I will be memorializing my true experiences on various online forums with photos included, and will take vigorous legal action including the filing of counterclaims as appropriate.
I may be overthinking this but I want to cover my bases and be prepared.
Help:
My primary questions are:
- If you've broken a PM contract how did it play out? Any legal action?
- What would you recommend doing in this situation?
- What else am I missing or should be mindful of?
Thanks in advance for your help! (Note: not looking for platitudes on the virtues of self management or how to choose a PM, just looking for help on how to get out of this contract)
Andy
@Andy Brown I would keep it professional. Just send an email saying you’d like to end the arrangement. Typically you probably need 30-60 day notice. So do that, make sure you get all your rent and deposits and away you go.
I’d recommend getting a new PM before you cut this one loose