Ending property management contract
Question from Annett updated on 24th September 2014:
My property is let on a fixed term for one year and I signed an agreement with a property management company at the beginning of this. My tenant wants to stay on and I would like to manage the property myself. My impression was that the management agreement ends with the tenancy agreement and any following will be a new agreement between the landlord and the tenant .But the agency resists a termination of the contract referring to the terms and conditions, including that termination by the owner shall be by giving three months notice in writing subject to the initial six month period being assured. Does this mean I can’t terminate the contract if my tenant stays
Our expert Juliet Robinson responded:
No it doesn’t. Property management companies often require a minimum management period in order to get a fair return on the investment of time and work which they have spent in preparing for letting and in finding a tenant. From the information you have provided, I read that the agreement says you can terminate the management by giving three months’ notice but with a minimum management period of six months. The same terms apply to a subsequent tenancy. If a tenant renews an existing tenancy, there is no need to have a new tenancy agreement. The original tenancy agreement can continue, and you can take over the management by giving three months’ notice in writing to your property management company. Note too that the notice can be given within the initial term, with the termination to take effect after the six months has passed.
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