Property Manager Raising Management Fees

[Dean West]

Hi BP Community,

My Property Manager (Great Jones) has sent a mass email saying that any landlords with an 8% management fee, will see a rise to 10% next month.  I've read through the Property Management Agreement, and it doesn't specify an end term to the agreement (I signed it 5 months ago).

My question are, (1) has anyone experienced Property Managers raise their management fees out of the blue?  (2) Is there any guidance that has worked for others in pushing back on this increase?

I built my pro-forma for my multi-family property around the management fee of 8% that they agreed to and this will obviously impact my monthly cash-flow.

Thanks in advance for your thoughts.

[Aaron K.]

@Dean West where is the property located? if in CA I'm switching managers no question, if it is in the Midwest maybe not.  Also you have a multifamily property which means you have more than 1 unit and property management agreements are always negotiable but more so once you get to about 4 units.