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 Bs, Real Estate Pro in San Jose, CA

Property manager Question

Asked by Bs, San Jose, CA Fri Oct 7, 2011

Hell:My current agreement with my current property manager (PM) is month to month since it has past the first year exclusive term in 2010. The management fee is a fix 10% of rent collected (no extra finding tenant fee). The current tenants signed a new one year lease in May11 after they had stayed there one year. The new lease is to pay my PM directly, my PM deducts 10% fee and sends me a monthly check.

Now, I am wondering if I can change a new PM this year by giving my current PM 30 days notice without penalty or I have to pay my current PM 10% management fee for the rest months of the new lease. If I can change this PM, I will sign a new lease with my current tenants. So, how to handle/void the old lease to PM (May11 to May12)? Please kindly advice. Thank you in advance for your help!

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Answers

6
Nadim Aziz’s answer
BEST ANSWER
Hello,

I cannot speak specifically to your situation as I have not read your property management agreement. However, I will give you feedback based on how I conduct business. I am a Property Manager providing services here in Santa Clara Valley. First thing to remember is that you cannot just go and cancel the existing lease. Tenants have a lease and regardless of your relationship with your property manager, you are bound by it.

That being said, this is how my contract works. If I were the Property Manager and my contract was on a month to month, a new lease with the tenant that just started in May and you decided to terminate your relationship with me, you would not owe me any money from the lease. I get paid only for the months I managed the property and as long as I got a full one month notice, that would be fine. Lease goes with the tenant and property.

This is why it is imperative that you read your agreement to make sure what your liability may be. If unsure, as previously menmtioned, you can check with an attorney. However, you can also ask the property management directly and see what their response might be.

http://www.esjn.net
Web Reference: http://www.esjn.net
1 vote Thank Flag Link Fri Oct 7, 2011
Hi Bs

You can change your property manager, as he too is on a month to month.

Unless of course when you signed a PM agreement there was a fixed time period of
2-3 years stipulated.

Give him a months notice and after that either manage it yourself or find a new Property Manager.

Good luck.
Perry

http://ruthandperry.com/RealtorWebPage?custompage_id=1422290781
0 votes Thank Flag Link Thu Oct 13, 2011
I disagree with Pierre:
You, by definition will never have a month where the PM Agreement expires at the same time as the Tenant's Lease.
You are not under Contract with the PM, (I understand) now, so now would be a good time as any to change.

You can and should expect excellence. Go for it.

Good luck and may God bless
0 votes Thank Flag Link Fri Oct 7, 2011
You decided to use the PM to get another 1 year lease from the tennants he found you but yet you are now trying to save some money by squeezing him out of the deal. Seams unfair to me. What are you unhappy with now that you where happy enough with a month or two ago when you had the pm start a brand new lease for you? I would have you discuss the issues you are having with the PM and wait out the contract 1 year period. Before having him help you again at the end of that year, pick a different PM then. Just more fair that way.

Pierre Malak
DRE 01374262
408-807-3409
0 votes Thank Flag Link Fri Oct 7, 2011
I agree with Scott, you need to read the contracts you have between the parties. You can also discuss this directly with your PM. If you are not satisfied discuss it with a Real Estate Attorney.

All the best to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Fri Oct 7, 2011
You need to read your contract with your PM. You also need to read teh lease you signed to see what is says for future payments. You may want to seek the advice of your lawyer to be sure.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Oct 7, 2011
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