When do you need a property management contract?

A management contract is a standard requirement when hiring a manager to take over an investment property; a fair contract will protect both the owner and the manager, and clearly define each person”s role for the term of the agreement. In general, a property management contract will always contain the same basic types of information.

What happens if you fire your property manager?

The tenant can then renew a lease with the new property manager and you can start a fresh cycle and paperwork with the tenant. If the tenant decides to leave, it will be easier for the new PM to make the house rent ready, find a new tenant and take care of all the paperwork themselves as they normally do.

Can a property management contract be terminated without cause?

If you attempt to end a property management agreement without proper cause, the manager could ignore your request or take you to court for breach of contract. Terminating a property management contract requires advance notice. The termination clause of your management contract should specify how much notice must be given.

What’s the termination fee for a property manager?

It can be as little as a few hundred dollars or as much as the management fee for the remainder of the contract. Make sure you are given copies of all leases, records of security deposits, and a statement of all income and expenses immediately upon termination of the contract.

What to do if you have a contract with a property manager?

Depending on the contract, either you or the current property manager must inform tenants that you have parted ways with the current management company. This also is best done in writing. Provide tenants information about who will manage them moving forward and let them know where their security deposits will be held.