Property managment 6 month "unleased" lock-in term

[David B.]

Still trying to identify a property management company to use.  I thought I had one, except the agreement is stating that we have to remain in the contract even if they have not leased the property in 6 months.  


If, after the original 180 days of this Agreement, the Property
remains unleased, either Agent or Landlord may, with 14 days written
notice to all parties, terminate this Agreement.



Is that standard? That seems like an awfully long time that I can not take other actions if I'm not satisfied with their service.

[Jeff Copeland]

Why don't you ask them for clarification? 

They have no incentive to leave your properties sitting vacant, but it's not uncommon for real estate investors to have properties under renovation or "offline" for whatever reason for several months, and the PM doesn't make any money if there is no rent coming in. It sounds to me like they probably just don't want a bunch of unrented/unrentable properties clogging up their system and wasting their time since these properties don't generate any revenue. 

And it doesn't say anything in the language above suggesting the landlord "cannot take other actions". Is this the only thing in the PMA that addresses termination/cancellation?

[Nathan Gesner]

Quote from @David B.:

I've not seen that before, and it's certainly not "standard" around the country.

I would ask them to clarify. There should be a clause that allows termination of the contract if the PM fails to perform. I would say they've failed if it's still empty after 30-45 days and I certainly wouldn't accept six months.

[Drew Sygit]

Sounds like they are applying language from their listing contract for sales, to their management contract.