Is it property managments tenant or landlords tenant
I noticed that in the property management agreement it states the landlord has to continue paying the property management fee if the property management company is the ones that procured the tenants.
Property Management company charges $350 finders fee, then $145 a month management fee.
If after the year lease we don't want to continue with the PM, we cannot keep the tenant without continuing to pay the property management company if they procured the tenant.
Is that common that the tenant is attached to the property management company?
This would be very unusual in San Antonio, but may be something that varies by market. It may be useful to contact a couple property management companies in the area and ask what their policy is.
-
Real Estate Agent
- (210) 940-4284
- https://www.BirdyInvestmentTeam.com/
- [email protected]
I just want simple chocolate.
Quote from @David B.:
This is a question for your property manager. It's hard for us to answer without knowing the company or reading their contract, policies and procedures, etc.
In my company, the Landlord has to stick with us for one year. If they terminate before that, they have to pay us the remainder of the management fees we would earn through the remainder of that first 12-month period. After that, Landlords can terminate for any reason without any penalty.
#3 Innovative Strategies Contributor
- Investor
- Greenville, SC
That's not uncommon but it's a punitive clause and you will lose money having to pay two management companies at the same time for one unit. In many cases, the PM is simply picking up an in place resident and collecting rent. So, ask them if they are willing to adjust or shop around. There is not a right or wrong answer here for what is equitable...it's just what is a best fit for both parties and not all partnerships fit.
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 3,645
- Votes |
- 7,042
- Posts
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@David B. you are correct that there are "31 flavors", maybe more!
To address the subject line of your post, the tenant "belongs" to the property owner. The lease should state that and identify the PMC as the agent of the owner. But, we've seen many PMC's get this wrong - some that have been in business for years and should know better.
What you are really referring to is the Termination Fee.
These can be ANYTHING that both parties agree on.
It is very common for PMC's to protect themselves with Termination Fees. Otherwise, what's to stop an owner from hiring a PMC to find them a tenant, and then terminating the PMC to avoid paying the monthly management fees?
Quote from @Drew Sygit:
@David B. you are correct that there are "31 flavors", maybe more!
To address the subject line of your post, the tenant "belongs" to the property owner. The lease should state that and identify the PMC as the agent of the owner. But, we've seen many PMC's get this wrong - some that have been in business for years and should know better.
What you are really referring to is the Termination Fee.
These can be ANYTHING that both parties agree on.
It is very common for PMC's to protect themselves with Termination Fees. Otherwise, what's to stop an owner from hiring a PMC to find them a tenant, and then terminating the PMC to avoid paying the monthly management fees?
Quote from @David B.:
Quote from @Drew Sygit:
@David B. you are correct that there are "31 flavors", maybe more!
To address the subject line of your post, the tenant "belongs" to the property owner. The lease should state that and identify the PMC as the agent of the owner. But, we've seen many PMC's get this wrong - some that have been in business for years and should know better.
What you are really referring to is the Termination Fee.
These can be ANYTHING that both parties agree on.
It is very common for PMC's to protect themselves with Termination Fees. Otherwise, what's to stop an owner from hiring a PMC to find them a tenant, and then terminating the PMC to avoid paying the monthly management fees?
Seems to be the norm in Virginia Beach. Spoken with 3 PMs so far and they all say if they procure the tenant they expect to receive PM fees.