How to Properly Terminate a Property Management Agreement

Why Would You Terminate a Property Management Agreement?

There are several reasons why you may need to terminate a property management agreement. Maybe you have found a better solution for managing your property. Perhaps your goals have changed and you no longer need a property manager. Or maybe you had a disagreement with the management company and can no longer work together. Whatever the reason, there are some steps you need to take when terminating a property management agreement.

Steps to Terminate a Property Management Agreement

The first step in terminating a property management agreement is to review the agreement. Make sure you understand exactly what is required and what the process is for terminating the agreement. You should also make sure you are within the timeline of the agreement, as some agreements require a certain amount of notice before termination.

1. Notify the Property Management Company

Once you are sure you are ready to terminate the agreement, the next step is to notify the property management company. This can be done through a letter or email and should include the date of termination, the reason for termination, and any other relevant information. The property management company may also have additional requirements for termination, so make sure to follow those as well.

2. Collect All Relevant Documents

Before you terminate the agreement, you should ensure that you have all the documents you need to transition the property management to another company or back to you. This includes any financial records, contracts, and other documents related to the property. Make sure to keep copies of all documents for your records.

3. Make Necessary Payments

Most property management agreements include a clause for payment upon termination. Make sure to pay any amounts due to the company before terminating the agreement. This includes any fees for services rendered as well as any remaining balances.

Conclusion

Terminating a property management agreement can be a stressful process, but it doesn’t have to be. By following the steps outlined above and making sure to review the agreement thoroughly, you can easily terminate the agreement and transition the property management to another company or back to you.