When ending a relationship with a property manager or property management company that you have an active engagement with, here are some contract terms that you should be aware of:
Give the Proper Notice. Most contracts will require between 30 and 90 days notice to terminate. Make sure you are within this window or your termination request will not be honored.
Make Your Notification in Writing. You need to make sure your notification to terminate the management contract is in writing. Send it through ManageCasa and request a receipt, also make sure you include the effective date of the contract termination.
Don’t Terminate if You Do Not Have Cause and Your Contract Requires It. Ideally, when you first sign a management agreement, you want to look for one that does not require cause to terminate the agreement. However, if your contract does require cause, you must have a reason, as spelled out in the agreement, to cancel the contract.
Understand the Costs Involved. Even if you do give proper notice, some contracts will still charge a fee for early termination. This fee can be as little as a few hundred dollars or as much as the management fee for the remainder of the contract. You will of course also be responsible for paying the manager all fees they have been incurred up until the contract termination effective date.
Inform tenants of the change. Give your tenants the information about who new management will be, provide contact information, and let them know about the status of their security deposit.
Terminate if the Manager Has Breached the Contract. If management violates the terms of the contract they have signed, it is in your best interest to terminate the contract. Once they have violated your trust it will be hard for you to ever feel secure allowing them to manage your property.
Request necessary reimbursements. Generally allow for one to two months to receive funds to be paid back to you. Make sure you keep clear documentation so when the time comes, you are aware of the itemized and detailed amounts.
Obtain and keep paperwork on ManageCasa. Make sure you are given copies of all leases, security deposits, and statements of all income and expenses. These documents should be sent to you immediately upon termination of the contract.
Remember, ManageCasa allows property managers to use ManageCasa's online home and property management software to manage your rental properties, but you can also use www.managecasa.com if you are deciding to manage your rental properties yourself.