If the owner wants to terminate the PM contract before placing the first tenant, we can do so.
You will need to update Zoho if the owner asks you to terminate the agreement. Please ask them for the reason, then add the property to terminations as follows:
Zoho -> Properties -> Property Terminations (add a new entry for this property).
This will send an alert to the management team, and they will then work on retention strategies to retain this owner.
You must add this to Property terminations as soon as the owner tells you his intention to terminate, so retention efforts can start immediately
There may be certain fees applicable for termination as follows:
1. Property management fees - IF the owner terminates after placing the first tenant but BEFORE THE FIRST TENANT completes 11 months, the owner will need to pay the Property management fees for the remaining term.
For example, if the first tenant was placed on Jan 1st and the termination date is June 1st, then he has already paid management fees for 6 months, so he will need to pay PM fees for 5 more months before he terminates.
2. Tenant Keeping fees - If he keeps a PM tenant, then he must pay a 30 day tenant keeping fee as well. This is only applicable for Properties on the Standard plan model (not value plan).
Notice period: This is usually 1 month for vacant properties and 65 days for tenanted properties.
A screenshot showing termination clauses for a sample agreement is below:
