How to add an addendum on current owners management agreement?

Question

I was looking to add a new section on current owners management agreements and new agreements regarding an additional charge. I noticed other companies charge the owner a fee like a $100 admin fee or something if we take over a property with a tenant the owner put in place and then have to evict them after a month to two later. I know on resident leases you can add a new addendum on the lease at renewal time but our management agreements don't expire they continue forever essentially unless either party gives a notice to terminate. How would we go about adding this on there in FL? Is it even possible to do or would they have to sign a whole new document?

Drew Sygit · Answer

@Chris G. any contract can be modified if all parties agree and sign it.

Otherwise, your contract should have a renewal period or notice period with which either party can cancel. These can also be used to modify it.

Adam Bartomeo · Answer

Adding an addendum mid contract is often difficult when it favors one party over the other.

I guess I am a little confused... bring on a new property normally comes in 2 forms -

1. New owner and new property = new PMA and addendum. No issue.

2. Existing owner and new property = new PMA and addendum for that property. No issue.

Drago Stanimirovic · Answer

Hi Chris,

To add a new fee to your existing management agreements in Florida, you may have a couple of options depending on the terms of your current contracts.

If your agreements don't expire and continue indefinitely, the simplest approach would likely be to create an addendum to the current agreement outlining the new administrative charge. You can present this to property owners for their signature, rather than drafting an entirely new contract. It's important to get the owners' written consent for any changes to fees or services.

Another option is to include a notice of contract modification clause, if allowed by your current agreement, which may let you amend the contract with written notice. However, you should ensure that the contract language allows for such changes without requiring a full contract re-signing.

Consulting with an attorney familiar with Florida real estate and property management law is advisable to ensure compliance and avoid any potential legal issues when making these adjustments.

Let me know if you need help with any other aspects of this process!

Best regards,Drago

How to add an addendum on current owners management agreement?

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