You should end your relationship with your property manager or management company if you are not getting the results you were promised. But you should also do this according to the terms of the management contract that you signed to protect yourself from legal consequences. Here are the ways to terminate a property management contract:
#1. Give a reasonable amount of time
Check the termination clause of the management contract. In most contracts, a month or two month notice will be needed to end the contract. If you fail to live up to these terms, your request for termination will definitely not be honored, or it could be considered a breach of contract.
#2. Put your report in writing
Ensure that your report to end the management contract is in made writing. Also send the report by certified mail, return receipted, so you will be notified that your mail was sent and was received by the property manager. Include the actual date of the contract termination.
#3. Understand the Costs Involved
Check the terms on contract as some contracts will charge a fee for the early termination of the contract. You’ll also be accountable for paying the property manager all fees they acquired until the date set for the termination clause to take effect.
#4. Don’t terminate if you do not have cause
If you attempt to end the contract without a cause, your request may be rejected, or could land you in a lawsuit.
#5. Terminate if the manager has broken a rule in the contract
If the management did something that went against the terms of the contract they signed, it’s in your best interest to end the contract. After they have dishonored your trust it will be difficult for you to feel secure round them, much less allowing them to handle your property.
#6. Give time to get funds owed to you
You should expect to have to wait patiently for one or two months until you get all income owed to you.
#7. Don’t make it personal
It’s very easy to let a personal relationship temper with the actual results the property manager is showing. That’s why you need to focus more on the numbers and the results. You might like a person but at the same time feel that they are not living up to your expectations, perhaps due to the fact that they are responding slowly to maintenance requests or they are taking too long to fill empty spaces. You simply have to do what’s best for you.