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Can a Landlord Change a Lease After It Has Been Signed?
If you’re asking, “Can a landlord change a lease after it has been signed?” we’re glad you stopped by to find out....
Whether you’re selling a rental property, switching to property management software, or simply tired of paying 8% to 12% monthly recurring fees, you’ll need to know exactly how to terminate your existing property management contract.
To help, this guide will walk you through common reasons landlords make the switch, a six-step guide to canceling your contract, and a free termination letter template for you to use.
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Reasons to Terminate Your Property Management Contract
There are plenty of reasons to cancel your property management contracts, including:
High Costs Are Hurting Your Bottom Line
Most property management companies charge between 8 and 12% of the monthly rent price. That’s no minor expense, and the recurring fees can have a real impact on your cash flow. If rising fees are stunting your returns, it might be time to axe your contract to free up more funds.
You’ve Sold, Moved, or Expanded Into a New Market
Sometimes, a simple sale or a move to a new area is all it takes to part ways with your property manager. If you’ve offloaded a rental or expanded into another market, switching management is often the practical next step. Nothing personal, soon-to-be-ex property manager. It’s just business.
Lack of Communication or Responsiveness
Whether it’s missed maintenance requests, delayed rent updates, or tenant complaints left unanswered, communication breakdowns can harm your business in numerous ways. If your property manager isn’t alert and responsive, it’s probably time to consider replacing them with a more dependable solution.
Poor Maintenance and Repair Handling
When maintenance issues arise, addressing them promptly and effectively is non-negotiable. If your property manager is failing to deliver when gathering quotes, vetting contractors, or scheduling repairs to maintain habitability, they’re a liability.
To resolve this issue, consider switching to property management software that includes built-in maintenance tracking and a coordinated repair dispatch system.
Tenant Complaints
Tenants and property managers have to get along. (Your sanity relies on it.) If you’re hearing complaints from tenants about poor communication, delays, or general unprofessionalism, it might be time to start drafting your termination letter. Disgruntled tenants can lead to turnover, bad reviews, and prolonged vacancies you can’t afford.
Desire to Self-Manage or Use Property Management Software
Maybe you suddenly have more time on your hands and want to take a crack at self-managing your properties. Or perhaps you’ve realized that modern software offers time-saving tools that can streamline most of the work for you. Regardless of your reason, you might be primed to make a bold move that saves you thousands by simplifying your rental operation.
Property management software can help you advertise listings, screen tenants, collect rent, manage repairs, and store documents, all from the comfort of your computer or smartphone. And if going entirely DIY feels too risky, a hybrid approach with occasional hired help is also viable.
How to Terminate Your Property Management Contract
Before you rush to submit your notice, ensure you understand the proper procedure for cutting it loose. The following six steps will help you exit your property management agreement:
Step 1: Review Your Contract Terms
Always reread your property management contract before terminating it. (This rule goes for any contract you ever sign, really.) As you review it, look out for termination clauses, notice periods, and any early cancellation fees. Understanding the fine print helps you avoid slipups and increases your chances of a clean split.
If, after reading your contract, it makes sense to cancel, take steps to move forward. Open up your laptop, draft your notice letter, and get ready to deliver some bad news to your property management company (professionally, of course).
Step 2: Issue Written Notice to Terminate Your Contract
Next, it’s time to tell your property management company something they probably don’t want to hear: you’re moving on to greener pastures. To do that, you’ll need to send them a formal termination letter that is professional, clear, and direct.
When writing your letter, be sure to include your property address(s), termination date, and any relevant references to the contract’s terms. Stay specific, avoid emotion, and make it simple for them to close out their end of the relationship.
Pro tip: Keep reading for a free termination letter template you can copy, paste, fill in, and send directly to your property management company.
Step 3: Square Up on Finances
When you end your contract, you’ll likely have some loose financial ends to tie up. These might include termination fees, unpaid invoices, or pending maintenance reimbursements. Review your final statements carefully to ensure everything adds up before proceeding.
Then, pay everything in full and get written confirmation from the old company that your account is closed and zeroed out. The key here is to completely shut the door on this past arrangement. Don’t leave it cracked open for surprise charges or disputes down the road.
Step 4: Communicate the Change With Tenants
Switching from a property management company will inevitably bring changes. Let tenants know you’ve parted ways with your property management company and explain what to expect next. Clear communication will prevent your tenants from texting the wrong number, mailing checks into the void, or being unsure who to call when the toilet backs up.
Step 5: Transition Property Management Duties to Software
Now it’s time to start transitioning as many of your day-to-day duties as possible over to software. You can automate many aspects of your operation, including rental applications, tenant screening, state-specific lease generation, accounting, and bookkeeping, among others.
And while your operation won’t become completely passive, it’ll become a whole lot simpler. You’ll save time, streamline essential processes, and put an end to forking over 8 to 12% of your rent each month.
Sign up for a free TurboTenant account to get started.
Step 6: Monitor the Transition Closely
As you automate, make sure tenants sign up for digital rent payments and understand how to enroll in autopay. Double-check new leases before sending them out and ensure that your accounting system is set up correctly. Make necessary tweaks to stay organized.
Pay attention to how things run once you’ve made the switch. If payments are late, tenants get confused, or messages go unanswered, make adjustments as needed. A little fine-tuning early on will go a long way toward keeping your business running like clockwork.
Free Property Management Termination Letter Template
[Your Full Name]
[Your Mailing Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Property Management Company Name]
[Company Address]
[City, State, ZIP Code]
Subject: Termination of Property Management Agreement for [Property Address]
Dear [Property Manager’s Name],
I am writing to formally terminate the property management agreement for the rental property located at [Rental Property Address], as outlined in our contract dated [Original Contract Date].
In accordance with the termination clause stated in the agreement, I am providing [X] days of written notice, with the final effective date of termination being [Termination Date]. Please confirm receipt of this letter and begin the process of transferring management duties, tenant records, and any outstanding funds or deposits.
I request a final accounting statement, along with all relevant documentation, including lease agreements, maintenance records, inspection reports, and current tenant contact information. Kindly ensure that any future correspondence regarding the property is sent directly to me at the contact information listed above.
Thank you for your service to date. I appreciate your assistance in facilitating a smooth and professional transition.
Sincerely,
[Your Full Name]
TurboTenant: Your All-in-One Digital Property Manager
Now that you understand how to terminate your property management contract, it’s time to take control of what happens next. TurboTenant can help with the transition by automating rent collection, lease signing, tenant screening, and more.
Not to mention, many of TurboTenant’s core features are free to use. Signing up takes just a couple of minutes, and you won’t even need to bust out your credit card. Once you’ve taken our software for a test drive, you can upgrade to a paid plan for full-feature access. It’s less than the middle-tier Netflix price.
Sign up for a free TurboTenant account and start holding onto the 8 to 12% that used to go to your property manager.
FAQ: Terminating a Property Management Contract
How do I terminate a property management contract?
Start by reviewing the termination clause in your property management contract. Search for notice periods, cancellation fees, and valid reasons for termination. Most contracts require a written termination letter, so understanding the terms up front will help you draft it properly and terminate without breaching the agreement.
How long does it take to terminate a property management contract?
Termination timelines vary based on what your contract says (usually notice periods, early-exit fees, or both). Read the fine print and check for any state-specific rules that apply. Once you understand the terms, follow them closely to avoid penalties.
Can I cancel a property management contract mid-lease?
Yes, but only if your contract allows it. Some agreements permit mid-lease cancellations with the proper notice and an accompanying fee. But before you pull the plug, make sure rent collection, maintenance, and tenant communication don’t fall through the cracks during the transition.
What are common early termination fees for ending a property management software contract?
Early termination fees for property management software contracts typically include flat fees ($100–$500), a percentage of the remaining contract (25%–75%), or the full remaining balance. Some vendors also charge for previously waived setup or onboarding costs if you cancel early. Watch for auto-renew clauses, required notice periods, and potential data export fees in the fine print. For more information on closing your TurboTenant account, check out our support article.
