What to do if we have a property management company that we feel has breached our contract?

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What to do if we have a property management company that we feel has breached our contract?

They spent more than was authorized in our agreement on repairs without permission. They are collecting less than the agreed rent and we just found out the tenants have a pet. Pets are allowed if they pay additional rent but they haven’t collected that. I asked to cancel our agreement and now they want their commission for the remainder of the lease which is 18 months. Can we cancel this contract somehow?

Asked on November 17, 2012 under Real Estate Law, South Carolina

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Yes, if the property management company has breached material, or important terms of the agreement--such as spending more or collecting less than agreed upon--you could terminate the contract; one party's material breach enables the other party to terminate an agreement. You would still owe them any amounts they earned prior to the termination, but could seek to offset that by any amounts they should have collected for you but failed to, or any excessive expenses which went beyond authorization. They, of course, might refuse to acknowledge they owe these sums and you could end up in litigation, so you should only do this is the amount at stake makes litigation worthwhile.

 


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