Breaking PM contract

[Steven Virgil]

I purchased a 4 plex last year in South Bend, IN and was somewhat cornered into keeping the existing PM due to being out of state and some unethical actions by the seller. The 4 plex is in a rough area and is 3/4 occupied, 1 of which is Sect 8. Anyway, the PM is very slow to respond, poor at screening tenants, has neglected to send monthly income statement a few times as outlined in contract, charged 24 hours at $49/hr for very minor repairs and cleaning, all without prior approval. The contract says I must pay a $100 cancellation penalty plus remaining management fees (10%) but I’m wondering if there is A: a way to recoup some of these excessive charges and/or B: avoid the cancellation fees due to breach of contract.

My last correspondence with the PM was an email sent on April 3 that they haven’t replied to. This isn’t a new issue, unfortunately and I already have a new PM who is interested in managing the property.

Thank you in advance for any advice or suggestions.