One of the questions that I occasionally get from one of my Oklahoma City metro area clients is how you go about terminating a property manager.
the process of termination of property management agreement is very tough if not done in right way so this blog post will guide you on how to do just that in a super easy way.
Perhaps you’re frustrated with the service that you’re getting from the property manager, and you want to move to another property management company. There are certain procedures that you must follow.
In this article, I’m going to go through the steps that necessary whenever you terminate a property manager.
You want to do that in a way that protects your interests, is legal. These are good guidelines for what do in my market of Oklahoma City but should be applicable to other states as well. This is not legal advice and I am not an attorney.
The first step in that process is to find the paperwork with your property management company. You should have a management agreement with your property management company.
The second step is too look at the management agreement and determine what your obligations are. Within the management agreement should be the steps required to terminate the property manager. One of the items to look for in the property management agreement is how long that you’re required to give them. That is, how much notice you need to provide them upon the termination of service with them.
Ideally, you will be able to proceed immediately with termination up notice. The property management company I own and operate, OKC Home Realty Services, LLC allows the client to immediately terminate the property manager because if our client is ever unhappy with our service, we want them to be able to find another service right away.
Once you’ve got that information, write a letter to the manager. Send it by certified mail. Here are all the items that must be contained in the letter, at a minimum:
1) That letter should contain a request to terminate service by a specified date.
2) Upon the termination date, they must provide you deposits for the tenants that they have in their possession.
3) They must also provide a statement with all the income and expenses up to the date of termination.
4) They will need to provide you all the keys and documents that go along with the properties they are managing for you.
Follow that letter up with a telephone call to let them know what your plans are.
Now, let’s suppose that you don’t have a management agreement with your property manager. That’s not the best situation, but I have run across some individuals who just don’t have any kind of a written agreement with their property manager.
Let’s suppose you don’t have a management agreement with your property management company. Give the manager 30-days notice of termination. Go through the steps I’ve listed above for what you need to cover in your letter with the property manager. It will be the same even if you don’t have a written agreement with your management company.
So those are the steps that you can take to terminate your property manager the need should ever arise for you.