Edmond, OK · Member since 2013 · 78 posts · 6 votes
All,
Please help, considering two rented properties... the properties were rented 2 months ago using a property manager. When I buy the properties I do not want to use their manager, I have my own property manager, but that is my wife. I do not need nor want to pay a property manager.
1. Am I forced to continue that contract?
2. If the answer to 1 is not necessarily, how can I prove, or make sure I don't have to use them?
Atlanta, GA · Member since 2015 · 157 posts · 83 votes
10y
It is your property after you purchase, you can fire the property manager. However those PMs usually but a clause in the contract about early termination policy, which will cost you a couple bucks.
Would consult with and attorney to get the best direction how to discontinue the relationship after acquisition.
Investor · Andover, MA · Member since 2015 · 269 posts · 67 votes
10y
Make sure you (your lawyer) explicitly say in the P&S that you will not want to have to deal with any property management contract and then the house is 100% yours to do whatever you want: ask tenants to leave, et al
Residential Real Estate Agent · Grand Rapids, MI · Member since 2013 · 803 posts · 689 votes
10y
A lease is a contract that stays with the house even through change of ownership. The contract with PM's is usually just between owners and the PM. It isn't tied to the property at all and should be terminated at close if you do not choose to use them. You never signed the contract with the PM so you are not bound to them.
Buy the house and at close contact the tenants and let them know of the changes you intend to make about property management and how to pay you.
I am not a lawyer so don't take this as legal advice but I just went through this two months ago.
Property Manager · Cumming, GA · Member since 2015 · 261 posts · 199 votes
10y
Agree with @Jake Thomas The current management agreement is between the current owner and property manager. It will terminate after a successful closing unless there is verbiage in the purchase and sale agreement that says differently and that you agreed to. .....I'm not a lawyer:)
Investor · Washington, DC · Member since 2016 · 37 posts · 10 votes
9y
Everybody says management contract is between seller and manager, which is true, but not logical on why that would absolve the buyer. Leases are between seller and tenant, the buyer was not involved, but the lease becomes his problem after purchase. First step would definitely be to ask for the management contract, same as you ask for the lease. Then you know what you're stepping into, and whether it tries to involve you.