Impractical Inherited Lease Terms

[Zach Robbins]

I am purchasing a property that is currently managed by a property management firm. The property has tenants with a lease that does not end for several months. The lease includes a madatory "Resident Benefit Package" which includes things that I do not have the means to provide like credit reporting, home buying assistance, and a rewards program. This package also includes the tenants rental insurance through the property management company. To top it off, this mandatory package has a monthly fee paid with the rent. What are my options here? Can I ask the tenants to agree to void that part of the lease? But then what if they do not agree?

[Drew Sygit]

Agree with all posted by Stuart & Corby, except about the Renters Insurance.

We offer Renters Insurance to our tenants also and it's a special program only PMCs have access to and is a much better & cheaper "product" than tenants can get on their own.

You have 3 options:

1) Check the lease for a "transfer of management" clause to see if that can terminate those services.

2) Negotiate with the tenant to terminate those services.

3) Retain the PMC through the end of the lease.