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Updated almost 6 years ago on . Most recent reply

User Stats

2
Posts
1
Votes
Cameron Kendall
  • Jacksonville, NC
1
Votes |
2
Posts

Current PM makes tenant move out before changing to new PM co.

Cameron Kendall
  • Jacksonville, NC
Posted

My current property management company has been OK but they put in a clause in their contract that I MUST use their agent if I sell the property after a lease with them. It also guarantees them a 6% commission (I know, should have read more thoroughly).  They were unwilling to alter the agreement upon lease renewal which is coming up in 3 months so I contacted a new PM company who I want to take over. I have confirmed the current renter wants to stay in the property but the current PM just told me: "the current renter has to move out completely before changing companies". They say this is standard but I find this hard to believe. I also found the following statement in the contract which they are arguing states the current agent will get commission as long as the current renter is in the property: 

"Agent shall receive commision for the unexpired term, or renewals therof, of any Lease made by Agent and/or Owner during the Term of this Agreement and shall receive such commission for as long as any such tenants(s) procured by Agent remains in the property. The Lease survives the Management Agreement. "

Has anyone else had to deal with this? Any thoughts or suggestions would be greatly appreciated. 

Most Popular Reply

User Stats

270
Posts
187
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Alex S.
  • Specialist
  • Cleveland, OH
187
Votes |
270
Posts
Alex S.
  • Specialist
  • Cleveland, OH
Replied

This is nonsense never heard of this before. You are employing them and you can switch.

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