The awkward question every Landlord has to ask before signing up with a Property Manager
“What happens if we fall out of love?”
Nobody likes to start a relationship by planning for how it might end, but before signing a management agreement with a property manager you’ve got to pull out your bifocals, pour yourself a cup of tea and study the small print.
Firstly, every property management agreement is different. There are no set of common clauses or industry standards around terminating your property manager, so it pays to examine the contract in detail.
Look out for these terms in your contract, and make sure you are comfortable with them.
Notice Period - Most Property Managers will require 6-12 months’ notice for you to cancel the management agreement and take back the management of your property, or switch to a rival Property Manager.
Auto-renewal - Some agencies will include an “Auto-renewal” clause in the management agreement. These clauses are becoming more common and either tie the landlord to the agency for the duration of the tenancy agreement, or stipulates that the management agreement automatically renews after the end of the initial period if neither party terminates in time. Miss the narrow window to break the agreement, and you’ll be locked in for another term.
Fees – It’s common for property managers to charge landlords a ‘break fee’ for early termination of the management agreement. Typically a landlord would be asked to pre-pay the management fee that would have been paid to the Property Manager had you stuck with that agency for the course of the current tenancy agreement. If the tenant is on a periodic lease then the agency might insist you pay a nominal sum to exit the agreement – such as two week’s rent.
At Waikato Real Estate we believe we’ll keep your business with our award-winning service.
We aren’t worried that you’ll be looking for the exit door, so should you wish to part ways with us we won’t ask you to pre-pay any fees, nor do we auto-renew our management agreements.
All we ask for is 1 months’ notice and we’ll happily part ways and wish you and your property well.
Furthermore, we offer all new landlords a 3-month money back service guarantee. If you are not happy with the service you have received in the first 3 months of us managing your property then we will refund the management fees to you.
No ifs, no buts, no excuses.