The team at Grace Property Management has been in the business of property management for over 40 years. We believe in providing our owners and tenants with the highest level of service possible, and we understand the value of a strong reputation. Unfortunately, there are a number of property management companies who don’t operate in quite the same way.
A common question we receive from landlords and real estate investors using other property management firms is, “How do I get out of my property management contract?” Of course, you enter into an agreement with the hopes that it will be mutually beneficial, however, if you become dissatisfied, you should be prepared to exit the relationship. Many times, owners are unaware of the termination terms (or lack thereof) until they’re already locked into a contract and are unhappy with the service being provided by their property management partner.
In this blog, we offer a few pieces of advice for handling situations like this should they arise with your property manager.
Know the termination terms BEFORE you sign
Before signing an agreement with a new property manager, ask them about their termination terms. You should know upfront if you are able to break your agreement with a property manager and what this process will entail. Common termination clauses property managers include in their contracts are:
You may only give notice to terminate during a small window. For example, the contract will auto-renew each year and you may have a 2-week window to terminate before you become locked in for an additional year.
You may cancel with the caveat that you must pay management fees for the remainder of the lease term.
Enter termination dates on your calendar
If you are in a contract with a termination window, set up an alert in your phone or calendar so you don’t forget!
Ask for a waiver of termination penalties
If you’re unhappy with your property manager’s services, don’t be afraid to ask to terminate the contract without penalties. A reputable company should want their clients to be happy, meaning they should be reasonable if you come to them dissatisfied and looking to part ways.
Ask for a month-to-month management agreement with NO termination penalties
We are proud to offer this option to all of our investor clients and we believe that it should be the standard across the board for property management. As a property manager, we should be earning your business every single day and if you are unhappy, we believe you should be able to walk away. A property management company who believes in the quality of their service offerings will be OK to provide this to all of their clients.
We wrote this blog to help landlords seeking property management make the most informed decisions possible, as well as provide rental property owners stuck in contracts with actionable advice to navigate the situation. If you have any further questions, don’t hesitate to contact us. Our team wants to be a resource for you in all of your property management needs. Give us a call at 303-255-1990.