Terminating a Management Agreement Explained by a Fort Lauderdale Property Manager

Florida PMServices • January 22, 2021

Your relationship with the property management company you select must be built on trust, communication, and a shared set of responsibilities and expectations. You’re paying your property managers a monthly fee in exchange for a scope of services. If you feel like those services aren’t being provided or you’re not getting the value that you’re paying for, it may be time to re-think your relationship.

Or, perhaps you are simply doing something else with your investment property and you won’t need professional services anymore. You might be selling the home or preparing to move back into it yourself.

When you need to terminate your management agreement, make sure you’re communicating openly with your Fort Lauderdale property management company. Follow the steps and terms in that agreement and make sure everyone understands what’s required.

Reasons to Cancel Your Management Agreement

Change can be stressful, especially when that change involves one of your largest investments or an entire portfolio of investment properties. However, if you’re having problems with your current Fort Lauderdale property management team and they’re not willing to work with you to make those issues better, it may be time to move on.

Most of the clients we work with who have canceled their management agreements with other companies do so for one of the following reasons:

Communication is lacking or nonexistent
Maintenance is deferred or unreported, causing more expensive repairs to be necessary
Rent isn’t coming in consistently or the lease isn’t being enforced consistently
Accounting errors are frequent or statements are not provided

Your property manager should be transparent, accountable, and detail-oriented. If they’re not responsive to you, they’re probably not responsive to your tenant, either. You shouldn’t hesitate to make a change in these circumstances.

How to Cancel a Fort Lauderdale Property Management Agreement

Every company will have different policies for cancelation. There may be fees, long notice periods, and other steps to check off the list before you’re free and clear. The first thing you should do is review your management agreement. If you have signed with the management company for a specific amount of time, determine whether it’s worth waiting until the end of the contract term or if you need to break the contract right now.

Most management agreements will include conditions for the termination of your agreement. Find out how the transition works. If you’re moving over to another company, your new property manager can take the lead in coordinating with your old property manager, and that will save you a lot of time and stress. Your new management company will need lease documents, maintenance histories, and tenant information.

At Florida Property Management Services, we know we do a great job managing Fort Lauderdale rental properties, so unless an owner stops renting out a home, there’s rarely a reason to cancel an agreement with us. But, we believe in keeping our agreements flexible and owner-friendly.

If you’d like to hear more about this or any of our leasing, management, and real estate services, please don’t hesitate to contact us at Florida Property Management Services.

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