I would like to know the term of the LEASE Agreement.

Asked by Joypsalm91, California City, CA Sun May 27, 2012

I have a rental house. The tenant wanted a 3-year lease but we had advised our property management to just lease it for one year. On the lease agreement under Item # 5 it says,- "The term hereof shall commence on Oct 1, 2011 and contunue until Sept 30, 2012." But on item item #44 Additionals, my property manager wrote "Owner agrees that they will not raise the rent over the three year period even though the term of the lease is 1 year".
QUESTIONS
1. Based on the above information stated on the Residential Lease Agreement, could I stick to the 1 year lease which would terminate on Sept 30, 2012 even if my property manager added some notes on the item # 44 on the contract?
2. Should I not want to renew the lease agreement with the tenant, would my property manager has to right to collect the remaining 2 year property management fees because he claims that the tenant wanted to stay for 3 years and we are terminating the contract.
We have an unpleasant experience with our manager

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6
Damon Bottic…, Agent, Las Vegas, NV
Fri Jun 1, 2012
You need to be careful when terminating the property management agreement early if you are selling the house because some management agreements have a built in listing commission if the property is sold.

I live and work in Summerlin and would love the opportunity to help sell your home. I think it's important to review your lease and management agreement with any agent you are considering working with. Like you said, you need someone who is looking out for you to protect your interests and reviewing your current management & lease agreements is the first step needed to provide that kind of guidance.

Damon Botticelli
Silver State Realty & Investments
(702) 523-7713
0 votes
Joypsalm91, Renter, California City, CA
Mon May 28, 2012
Thank you for your comments. To Don and Yulia- both my management term and Lease Agreement with the tenant terminates on Sept 30, 2012
Follow up Questions-
1. Could I terminate my contract with my property manager earlier let us say June 30 and will just pay him the remaining 3 months management fees? Would this all what I am liable for?
2. Could I communicate with my tenant directly even before I terminate my management contract?
3. Per the tenant if we are not going to renew the lease they would like to leave earlier which we are okay with. I just want to be sure that they would not challenge or have some claim later as it would be their choice to leave earleir. Is there anything I need to do to protect myself as my manager does not seem to care for my protection?
4. I have a bad experience with my broker. We plan to sell the house right away- NOT a short sell as I put in alot of my savings to cover the difference between what I owe and the current value. I have loss so much already and I do not want anymore stress when we sell the house.
What qualifications should I look for when looking for a realtor? My house is in Summerlin and I want somebody who is experience in the area, kind, professional with integrity and good values. Any suggestions on this? Thank you
0 votes
Don Tepper, Agent, Burke, VA
Mon May 28, 2012
I'm not a lawyer, so this isn't legal advice. For that, you need a lawyer. However . . . .

The lease runs for 1 year. At the end of 1 year, the lease ends. Any provision addressing what you'll do with the rent AFTER the lease expires is outside the terms of the lease.

The lease--I assume--is between you and your tenant. Once the lease expires and the tenant moves out (if the tenant does move out), then any agreement you made with the tenant regarding the amount of the lease is moot. The tenant is no longer the tenant.

If there were an agreement between you and the management company agreeing to keep the rent unchanged, that perhaps could be enforceable. That's between you and the management company.

Would your property manager be entitled to management fees for the remaining 2 years? First, check your management agreement. But as you've described it, the current lease is only for 1 year. IF you decided to extend the lease and IF the management contract applies to that circumstance (it probably does, but please read it) then you probably would owe the fees.

But what it comes down to is that it's a 1 year lease. That's what you've got. That's what the tenant's got. That's what's applicable.

By the way, if you haven't signed the lease yet, then just cross out the provision about not raising the rent. While that's a nice incentive for tenants to stay, that's your decision and if you don't want to provide a 3-year lease, don't offer it. Just strike that line out. Besides, I'm a landlord. I've offered 2-year leases with no increase in the second year. But I don't know what's going to happen to various costs over the course of 3 years. I'd be reluctant to offer a 3-year no-increase clause.

Hope that helps.
0 votes
Yulia Shmatk…, Agent, Las Vegas, NV
Mon May 28, 2012
You can definitely not renew your lease with the current tenant. Your property manager has the right to collect management fees for the next 2 years ONLY if you have a property management contract with him for the whole 3 years and after he finds new tenants for that house. But if your property management was typical for 1 year, you will be able to change both a tenant and a manager.

Yulia Shmatkova
Realtor, Property Manager
702-481-3118
Encore Real Estate
0 votes
Damon Bottic…, Agent, Las Vegas, NV
Sun May 27, 2012
Your property management agreement should address early termination of the management agreement. If you are seeking a new property manager, most (including myself) would be glad to review your documents and discuss your options.

Since there is a discrepancy in your lease regarding the lease period, there are a few other items on the lease that should be looked at, but it sounds like you can terminate the lease on 9/30/12.
0 votes
Matthew D'Er…, Agent, Las Vegas, NV
Sun May 27, 2012
We are property management company. Please call us tomorrow after 11am. Matthew

Matthew D’Ercole
One Source Realty and Management
Cell - 702.501.0973

Website - http://matthewsellslasvegas.las.mlxchange.com
0 votes
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