As a landlord, you likely entered into a Property Management Agreement. This legally binding contract defines the responsibilities and remedies for all parties involved. Can a landlord terminate an agency agreement?
Pretty short blog, we know. But sometimes simple is better.
For more information, we suggest our previous blogs regarding the entire Property Management Agreement and termination process.
Before you terminate an agency, consider:
Often, the landlord’s first reaction is firing their property manager or management company. Sometimes this is called for. Most of the time the issue can be resolved and could be part of the storm-form-norm that business partnerships go through.
Understand when to fire your property manager versus remedying the issues. If you do decide to address the relationship, now is the time to communicate your clear expectations. SMART goals work great in this situation: specific, measurable, actionable, realistic and have a time limit.
Corrections aren’t being addressed:
After setting your expectations, continue to monitor and confirm the agency holds up their end of the agreement. If their progress starts to dwindle, learn how to deal with a bad property
You can’t afford to pay termination fees:
Unfortunately, this is a realistic concern. Property management agreements typical termination clause requires the landlords to pay the entire remainder of management fees that would have been collected. That means if you intend to hire another property manager, you are likely to be paying for two property managers simultaneously. Although to clarify, the fired property management company received their termination fee in a lump sum upon termination. But in theory, you’re paying for double the fees for the remaining months.
If this applies to you, learn how to manage a bad property manager.
Then after they’re terminated, here’s how to report a bad property management company.
Decide you if you want to hire another PM:
There are plenty of bad property management companies that landlords continue to come across. Sometimes the management company is good but the manager was atrocious.
Whatever the situation, there are good property managers. In fact, our mission at Burbz is aligning landlords with those good property managers. And doing so in a way that both parties can benefit.
If you’ve had enough of managers for a while, Burbz landlord software is also available to landlords for free. With seamless transitions, you can always onboard a property manager in the future as well.
Or, if you want/need a property manager then Burbz platform allows landlords to request proposals, interview, and hire while still owning your property data. If you are still in the market, let Burbz help you find a property manager near you.