Hi,
I'm looking for some feedback from the Bigger Pockets community.
I'm looking for a Property Manager to manage a rental property I'm buying in Texas (my first).
I found a local Property Manager with a stellar reputation on Yelp - dozens of 4- and 5-star reviews, and very few complaints. I was impressed!
Then I discovered a clause in their standard contract labeled "Complaint Resolution."
On the surface it seems reasonable: "Hey, let's try to work things out before we go public with our complaints. And let's keep it civil." But on closer reading it appears to give the Property Manager a permanent veto over anything a customer might say about them in a public forum. So now I'm nervous that their amazing rating average could simply be because they've legally muzzled their unhappy clients, and they only allow their happy clients to post reviews.
So, here is my question: How would you feel about the following clause in a contract provided by a Property Manager - or any other vendor, for that matter?
("Broker" in the text below is the Property Manager.)
COMPLAINT RESOLUTION
Broker shall have an opportunity to resolve any concerns or complaints identified by Owner. Owner agrees to identify in writing any concern or question Owner has regarding the services provide by Broker and to allow Broker an opportunity to resolve such concern. OWNER and BROKER mutually agree, that as additional consideration, specifically the mutuality of this clause, each is prohibited from making disparaging remarks/statements or publications regarding the other to any third party, internet, web-based, cloud based, or “review” type publication site, effective the date of this Agreement. This provision relates to remarks/statements/publications/opinions / evaluations or any other thought process reduced to writing regarding: (1) this Agreement; (2) any parties’ performance under this Agreement; (3) the lease Agreement to which this provision is an addendum to; (4) any duty or obligation or action of or by the Broker that relates to or touches upon the management of this Property. If any dispute arises regarding whether any remark, statement, or publication is disparaging, the parties agree that for purposes of this provision, expressly including the enforcement of this provision detailed below, that any remark, statement, or publication shall be irrefutably deemed disparaging if: (1) the other party requests, in writing, that the writing/publishing party remove the remark and/or publication; and (2) the remark and/or publication is not removed within seventy-Two (72) hours of said requests. OWNER and BROKER mutually agree that damages for failure to comply with this provision shall be liquidated at three hundred dollars (300.00) per day for each remark/statement/representation that is disparaging or is not removed within seventy-two (72) hours of request to remove said remark/ statement/ representation. OWNER and BROKER further agree that enforcement of this provision is appropriate through a temporary restraining order and/or injunctions and permanent injunctions, notwithstanding any rights under the First Amendment to the United States and/or Texas Constitutions or other codified statute, regulation, or code and that any party who prevails on enforcement of this provision, whether for monetary damages or injunctive relief is entitled to recover attorney fees against the other. The parties to this Agreement agree that this provision shall survive the termination, expiration or cancellation of the lease and this Agreement in enforceable at any time should any party publish a remark/statement/publication or other writing which is subject to this provision.
