Does the buyer inherit the PM contract?

[Katie M Reece]

I am in the process of purchasing properties that are currently under contract with a PM company. I have asked several times for that contract to make sure I will not be bound to use them. The properties are in a complete state of neglect and disrepair and they have been absolutely terrible during this process. No showed three times when they had scheduled to show the properties. Refused to notify tenants of upcoming inspections. We had to reschedule inspections three times and the seller's agent had to serve the notices. They refused to give keys to the seller's agent for empty units. They have not answered any phone calls or emails from anyone involved in the sale. There is no way I want these people managing my properties. Any input on the laws? I'm in AZ.

[Julie Hartman]

The management agreement is with the seller, not you. Unless you signed the agreement, then your name is not anywhere on it. When one of our owners elects to sell, the agreement dissolves once the transaction closes. Given that the PM company you are dealing with seems to be very unprofessional, I would make sure that all documents are accounted for as well as make sure the tenants have been properly notified (depending on your state law) with regard to their deposit changing hands, new location to pay rent, etc. Sounds like you may need to get legal with them because you don't want tenants to keep paying the PM rent once you close and not be able to collect it from them. You may even need to make direct contact with the tenants yourself if the PM is non responsive.