Do I have to pay property management company fees?

Do I have to pay property management company fees?

Investor · Shawnee Mission, KS · Member since 2016 · 24 posts · 2 votes

I'm in the process of firing my management company. We purchased a duplex at the end of November and kept the existing management company in place. They communicated with us just enough for us to sign the management agreement, but have failed to answer emails, text and phone calls for more than a week and have not deposited any earned rent for this month into our account.

I was reading through the management agreement. This line has me worried: "If agreement is terminated by owner, owner agrees to pay The Rent Company any commissions or management fees that would have been earned under any existing lease agreements."

If I fire my management company, will I still have to pay their monthly fee until both leases expire? One expires January 31st, 2017 and the other expires May 31st, 2017. It seems unfair that they could make me pay for a service they've failed to provide, but at this point I don't trust that they won't try to pull something on us.

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  • Patti RobertsonBusiness Member
    Property Manager · Virginia Beach, VA · Member since 2016 · 2k+ posts · 2k+ votes
    9y

    There should be a section that outlines the Duties of the Agent. Have they violated any of their duties?  If so, you probably have grounds to fire for cause and could fight the paying of the fees.

  • Robert GilstrapPro Member
    Residential Real Estate Broker · Cartersville, GA · Member since 2015 · 575 posts · 581 votes
    9y

    Agree with @Patti Robertson you need to check out the duties and read the entire agreement thoroughly. There should be a breach and cure clause somewhere. You give notice of the breach of contract, give them the required time to cure, if they don't then you terminate for cause.  Of course agency can be terminated at any time regardless of the contract provisions although you may have to deal with those after the fact. 

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