Summary: property manager has been struggling to fill my new property with a tenant for longer than a month now. I want to switch to a new property manager but current property manager wants to charge $300 and several other fees for early termination, which seems insanely reasonable to me.
Hello everyone! I am trying to see whether my property manager is being reasonable. We signed a contract with him to manage our property longer than a month ago and he still hasn’t been able to fill the property with a tenant. We discovered that his team never put a For Rent sign on the property and declined two applications without our consent. In addition to several other reasons, we have decided to switch to a new property manager but the current property manager is giving us a hard time. He wants to charge us $300 early termination fee on top of document retention admin fee, and projected loss of income even though they haven’t been able to find a tenant for longer than a month now. This seems insanely unreasonable to me. Is this an industry standard practice? Email copied and pasted from the property manager below:
13) Early Termination Fee. In the event that Owner terminates contract with Agent prematurely, Owner shall pay Agent $300 in addition to the Document Retention Admin Fee expedite the closing of the account and to offset costs and expenses and loss of projected income.
14) Cancellation During Listing Fee. In the event that the Agent has advertised and shown a property to at least one prospective applicant or tenant and the Owner terminates Agent’s services, with or without Agent providing occupancy of the property, the Agent shall be entitled to compensation in the amount of the listing price to offset costs associated with these tasks.
Is this even reasonable? I’m a realtor and only earn commissions when transactions actually happen. I would never charge my client if I can’t find him/her a home.