Need advice about ending local property manager contract

[Pratik Patel]

Hello everyone,
I will greatly appreciate your input regarding this property management contract issue. 

I would like to end current local PM service and self-manage this property instead. 

Per current PM contract, when I emailed 90 day written notice to current PM to not renew her PM service at end of current tenant’s lease and asked her to share tenant’s contact info so I can ask tenant myself if they would like to renew lease, local PM is stating that since she placed tenant I will need to use her PM service as long as tenant stays in property. If I want to end her PM service, she will have tenant move out of property at end of current lease in October. This seems excessive especially if tenant wants to stay in my property. I don’t have any contact info of current tenant to ask them if they would like to renew lease so I was hoping to get that info from local PM.

Here is language of PM contract.

What are my options to end local PM contract and to keep current tenant in property if they would like to stay in property?

[Richard F.]

I am not an attorney, and I do not play one on the internet. I also do not know your local laws. 

BUT, first of all, a very confusing arrangement, looks to me like something the PM drafted without legal review.

The second paragraph of section "2" appears to state what the PM is claiming, BUT the third paragraph appears to state that $1000 cancellation fee would resolve the issue, assuming the notice period you already seem to have met. "Reimbursement" of non cancellable "commitments" is very ambiguous and could be in reference to some aspect of the Rental agreement which I assume is between the Tenant and the PM co.

I would take your complete documents to an attorney familiar with RE law for what should be a quick review to give you advice. 

No way in heck I would ever have signed something like that without a clear understanding. Additionally, to me as a retired PM, it looks to me to be a pure money grab. Every company I worked for, it was a straight, simple, 30 days written notice by either party to terminate the contract. We don't want to work for someone that is unhappy or distrusting, and, we won't work for someone non responsive or that does not follow through/or approve upgrades or basic repairs. But then, we also would not take on a new property without our own walk through and written "update" plan approved first.

Newbies need to understand that PM contracts are almost completely negotiable on key points, prior to signing.