If you’re not satisfied with your current property management company, or perhaps you’re merely looking to take full control of managing your property, you may wish to learn more about the process of terminating a property management contract. However, to ensure that you terminate the contract without any legal issues or financial complications, you’ll need to follow the steps below.
What is a Property Management Contract?
A property management contract is a legal agreement between a landlord and a property management company that outlines their working relationship. It stipulates the services the company offers, how much they’ll be charging, and how long the contract will remain in effect. Before terminating a property management contract, you’ll need to understand the terms and conditions thoroughly.
Review Your Property Management Contract
The first step to terminating your property management contract is to review your contract’s terms and conditions. You’ll want to know about the contract’s termination clause, fees associated with early termination, and notice period. Typically, contracts have a 60- to 90-day notice period, but it varies depending on the agreement’s terms.
Review Local and State Laws
Before proceeding with termination, it’s essential to review local and state tenancy laws. You’ll want to ensure that nothing in the contract or the termination process itself violates any legal requirements. An attorney might be helpful in this stage if you’re not sure what your legal rights are.
Notify Your Property Management Company
Once you’ve adequately reviewed your contract and consulted with the relevant authorities, you’ll need to give formal notice to your property management company. The notice must be in writing and sent via certified mail.
Settle Any Outstanding Accounts
Ensure to settle any outstanding accounts or fees owed to the property management company, including utilities and rent collection. This will help you avoid financial issues and any possible legal actions.
Collect Your Documents and Keys
Collect all relevant documents and keys tied to your property from your property management company. Ensure that all deposits have been returned as well. This step is necessary to avoid any misunderstandings or confusion with the new management.
Evaluate Your Future Plans
After terminating the contract, you’ll need to evaluate your future plans for the management of your property. Are you going to manage it on your own or find a new property management company? Evaluating your plans will help you avoid any mistakes or disagreements in the future.
Find a New Property Management Company
If you decide to engage a new property management company, you may want to start looking for one before terminating your current contract. This will help ensure the seamless transfer of responsibilities without leaving any gap in service.
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terminating a property management contract can be a complicated process. However, following the steps outlined above will undoubtedly make the process easier while avoiding any legal or financial issues. Always remember to review the contract’s terms and conditions, notify the property management company beforehand, and settle any outstanding accounts before terminating.