propmgmtheadach
Junior Member
What is the name of your state (only U.S. law)? FL
Sorry, this will be long, but I desperately need your advices.
I own a condo in Central FL and currently have one property management company manage it for me, but I am not happy about their service for a couple of reasons and am thinking to change to different company. They have their own handyman company and are related to some A/C or appliance companies, etc. During these 2 years, I had replaced central A/C, dish washer, and spent a lot in various repairs. Recently, they changed lease agreement with tenant. I found out they removed the 3 days grace period for late payment and charged $65 late payment when the tenant paid on the 2nd day of the month. (they keep the $65, not me. ) That's really hurt the landlord/tenant relationship since the tenant may think I keep the money.
Another thing bothered me a lot was that they forced me to sign a new management agreement with them in the middle of the term. I carefully compared the old and new management agreement and has great concern about the following part. The tricky part is that in the new management agreement section 6, they removed " during the initial term". But I feel the entire thing is fishy and confusion. So I refused to sign the new management agreement and mailed (certified) them that I won’t renew the management agreement when the current term due at the end of June, 2012. (The following is the agreement I signed in 2010, but it was automatically extended another year. )
1. The OWNER hereby employs the AGENT exclusively to rent and manage the property (hereinafter called the - PREMISES") known as xxxxxxxxxx, FL in --------- county, upon the terms and conditions hereinafter set forth, for a term of thirteen months beginning on the 1st day of June, 2010 and ending on the 31st day of June, 2011 and thereafter for successive one year periods unless on or before 60 days prior to the above ending date or on or before 60 days prior to the expiration of any renewal period, either party hereto shall notify the other in writing that it elects to terminate this Agreement, in which case this Agreement shall be terminated on said ending date.
5.1 FOR MANAGEMENT: Ninety Five dollars per month or Ten percent (10 %) of the monthly gross receipts from the operation of the PREMISES during the period this Agreement remains in full force and effect, whichever is the greater amount. Minimum monthly management fee will be Ninety Five ($95) dollars per month. Gross receipts are all amounts received from the operation of the PREMISES including, but not limited to, rents and/or advance rents. However, earnest money deposits forfeited by tenants shall be divided 50% to OWNER and 50% to AGENT.
5.2 FOR LEASING: Six percent (6%) of the gross rent for the execution of a lease for a period of twelve (12) months or longer, to be deducted from the first month's receipts and Three percent (3%) of the gross rent for the execution of a lease extension, or Sixty Five percent (65%) of the first month's rent for a lease for less than twelve (12) months or a month-to month tenancy. Any cancellation fees paid to AGENT in accordance with Paragraph 6 of this Agreement shall be applied to reduce the above leasing fees. In any case where a tenant procurred by AGENT remains in the property subsequent to termination of this agreement, a fee of 50% of the management fee above shall continue to be due to AGENT, for the balance of said residency of tenant.
6. Termination by OWNER is effective thirty (30) days after written notice is received by AGENT. In the event OWNER terminates this Agreement during the initial term, the AGENT shall continue to receive the rental commission set forth above as long as the tenant(s) placed on the property by AGENT shall remain in the unit. In the event OWNER terminates this Agreement, the AGENT's rights provided for in paragraph 5.1 THROUGH 5.2 shall survive such termination. All monies expended by AGENT including marketing expenses shall be paid to AGENT prior to this cancellation and AGENT is authorized to withhold any sums owed to AGENT from monies held prior to the final disbursement to OWNER. An additional cancellation fee of $250 will be charged to OWNER should OWNER terminate this agreement.
This is my second year (not the initial term) with this company and the management agreement will be ended by the end of June, 2012. This is also the 2nd year of rental of the current tenant, but tenant's lease agreement will be ended by the end of Oct. 2012. Now the questions come:
Q1: I had mailed (certified) them in Feb that I will not renew the management agreement with them when the current term ended. However, they had not responded anything. What should I do?
Q2. What's the implication and difference between with and without "during the initial term" in section 6? The reason I ask this is I am not sure if I will need to continue paying them the management fee $95 every month based on paragraph 5.2 and 6, since the tenant they found will continue live there.
Why the property management company removed the “during the initial term” in paragraph 6?
Q3. If I do need to continue paying them, when will it be ended? By the end of Oct, 2012 when the current tenant's one year lease due although the tenant will sign another one year lease with me. (I am sure the tenant will keep staying after the current lease due). Or I will need to pay them forever as long as the tenant lives in my unit. I think it will be depended on the definition of "for the balance of said residency of tenant." In paragraph 5.2.
What is your interpretation to this?
Q4. If I do need to keep paying them from July to Oct 2012 due to the tenant still live there, I should pay them $95 per month or $47.5 ( = $95 x 50%) per month (based on "50% of the management fee above shall continue to be due to AGENT, for the balance of said residency of tenant" in paragraph 5.2.
Q5. Based on Paragraph 6, do I need to pay $250 cancellation fee when I terminate the agreement when the current term due? (I am not in the initial term)
What does this mean in Paragraph 5.2 " Any cancellation fees paid to AGENT in accordance with Paragraph 6 of this Agreement shall be applied to reduce the above leasing fees." And how it is related to the $250 cancellation fee?
Q6. If I need to pay them forever if the current tenant will live here a long time, I think it is a robbery. Is it legal for the management to do that? Can it be held in court? How I should deal with this issue? Can I legally ask the tenant leave in this case to avoid paying the management company forever?
Sorry for asking so many questions. I desperately need helps!
Thanks so much!
Sorry, this will be long, but I desperately need your advices.
I own a condo in Central FL and currently have one property management company manage it for me, but I am not happy about their service for a couple of reasons and am thinking to change to different company. They have their own handyman company and are related to some A/C or appliance companies, etc. During these 2 years, I had replaced central A/C, dish washer, and spent a lot in various repairs. Recently, they changed lease agreement with tenant. I found out they removed the 3 days grace period for late payment and charged $65 late payment when the tenant paid on the 2nd day of the month. (they keep the $65, not me. ) That's really hurt the landlord/tenant relationship since the tenant may think I keep the money.
Another thing bothered me a lot was that they forced me to sign a new management agreement with them in the middle of the term. I carefully compared the old and new management agreement and has great concern about the following part. The tricky part is that in the new management agreement section 6, they removed " during the initial term". But I feel the entire thing is fishy and confusion. So I refused to sign the new management agreement and mailed (certified) them that I won’t renew the management agreement when the current term due at the end of June, 2012. (The following is the agreement I signed in 2010, but it was automatically extended another year. )
1. The OWNER hereby employs the AGENT exclusively to rent and manage the property (hereinafter called the - PREMISES") known as xxxxxxxxxx, FL in --------- county, upon the terms and conditions hereinafter set forth, for a term of thirteen months beginning on the 1st day of June, 2010 and ending on the 31st day of June, 2011 and thereafter for successive one year periods unless on or before 60 days prior to the above ending date or on or before 60 days prior to the expiration of any renewal period, either party hereto shall notify the other in writing that it elects to terminate this Agreement, in which case this Agreement shall be terminated on said ending date.
5.1 FOR MANAGEMENT: Ninety Five dollars per month or Ten percent (10 %) of the monthly gross receipts from the operation of the PREMISES during the period this Agreement remains in full force and effect, whichever is the greater amount. Minimum monthly management fee will be Ninety Five ($95) dollars per month. Gross receipts are all amounts received from the operation of the PREMISES including, but not limited to, rents and/or advance rents. However, earnest money deposits forfeited by tenants shall be divided 50% to OWNER and 50% to AGENT.
5.2 FOR LEASING: Six percent (6%) of the gross rent for the execution of a lease for a period of twelve (12) months or longer, to be deducted from the first month's receipts and Three percent (3%) of the gross rent for the execution of a lease extension, or Sixty Five percent (65%) of the first month's rent for a lease for less than twelve (12) months or a month-to month tenancy. Any cancellation fees paid to AGENT in accordance with Paragraph 6 of this Agreement shall be applied to reduce the above leasing fees. In any case where a tenant procurred by AGENT remains in the property subsequent to termination of this agreement, a fee of 50% of the management fee above shall continue to be due to AGENT, for the balance of said residency of tenant.
6. Termination by OWNER is effective thirty (30) days after written notice is received by AGENT. In the event OWNER terminates this Agreement during the initial term, the AGENT shall continue to receive the rental commission set forth above as long as the tenant(s) placed on the property by AGENT shall remain in the unit. In the event OWNER terminates this Agreement, the AGENT's rights provided for in paragraph 5.1 THROUGH 5.2 shall survive such termination. All monies expended by AGENT including marketing expenses shall be paid to AGENT prior to this cancellation and AGENT is authorized to withhold any sums owed to AGENT from monies held prior to the final disbursement to OWNER. An additional cancellation fee of $250 will be charged to OWNER should OWNER terminate this agreement.
This is my second year (not the initial term) with this company and the management agreement will be ended by the end of June, 2012. This is also the 2nd year of rental of the current tenant, but tenant's lease agreement will be ended by the end of Oct. 2012. Now the questions come:
Q1: I had mailed (certified) them in Feb that I will not renew the management agreement with them when the current term ended. However, they had not responded anything. What should I do?
Q2. What's the implication and difference between with and without "during the initial term" in section 6? The reason I ask this is I am not sure if I will need to continue paying them the management fee $95 every month based on paragraph 5.2 and 6, since the tenant they found will continue live there.
Why the property management company removed the “during the initial term” in paragraph 6?
Q3. If I do need to continue paying them, when will it be ended? By the end of Oct, 2012 when the current tenant's one year lease due although the tenant will sign another one year lease with me. (I am sure the tenant will keep staying after the current lease due). Or I will need to pay them forever as long as the tenant lives in my unit. I think it will be depended on the definition of "for the balance of said residency of tenant." In paragraph 5.2.
What is your interpretation to this?
Q4. If I do need to keep paying them from July to Oct 2012 due to the tenant still live there, I should pay them $95 per month or $47.5 ( = $95 x 50%) per month (based on "50% of the management fee above shall continue to be due to AGENT, for the balance of said residency of tenant" in paragraph 5.2.
Q5. Based on Paragraph 6, do I need to pay $250 cancellation fee when I terminate the agreement when the current term due? (I am not in the initial term)
What does this mean in Paragraph 5.2 " Any cancellation fees paid to AGENT in accordance with Paragraph 6 of this Agreement shall be applied to reduce the above leasing fees." And how it is related to the $250 cancellation fee?
Q6. If I need to pay them forever if the current tenant will live here a long time, I think it is a robbery. Is it legal for the management to do that? Can it be held in court? How I should deal with this issue? Can I legally ask the tenant leave in this case to avoid paying the management company forever?
Sorry for asking so many questions. I desperately need helps!
Thanks so much!