[WA] [WA] Steps to end a property management deal in Washington
How can I legally terminate a property management contract in Washington after my manager failed to market my home properly, ignored my input, and caused financial losses while my husband is on active-duty military orders?
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Solved
Based on the agreement you signed, here’s what you need to know.
1. Term of the agreement and early termination
Your management agreement began on May 1, 2025 and has an initial one-year term (through April 30, 2026). Under Section 21, you can terminate the contract with 60 days’ written notice, but because you’re still within that first year, the early termination fees in Section 22 apply.
Section 22.1 states:
“In the event this Agreement is terminated within the Initial Term, Owner shall pay Agent an early termination fee in an amount equal to 10% of the potential gross monthly rent for the Property, whether or not the Property is leased or rented, for the remainder of the term or notice period, whichever is longer.”
So, for example, if your home was listed at $2,000 per month and you have 10 months left, the fee could be:
- $2,000 × 10 = $20,000 potential rent
- 10% of that = $2,000 termination fee
Additionally, Section 22.2 adds a $295 cancellation fee and reimbursement for any advertising costs if you cancel before a tenant is placed. Before panicking, there are several ways to challenge or negotiate these fees.
2. Misrepresentation or breach of contract
Even though the contract grants them wide discretion over pricing and marketing, they still owe you a duty of good faith and reasonable care under Washington law. If you can show that:
- They misrepresented their marketing efforts,
- Refused to consult you on pricing, or
- Ignored your documented requests to fix the listing,
you could argue they breached their duties. In that case, you would have grounds to:
- Dispute the early termination fee, or
- Negotiate a waiver or reduction due to their nonperformance.
3. Military PCS protections
As a military family, you may have additional leverage. The Servicemembers Civil Relief Act (SCRA) primarily protects tenants, not landlords, but many property managers in Washington will negotiate out of fairness and public policy considerations to avoid regulatory complaints or negative publicity. Even though your agreement doesn’t include a military clause, you can use your PCS orders as part of a good faith request for termination without penalty.
4. Recommended next steps
Document Everything
Save all communications showing:
- Lack of marketing proof,
- Refusal to adjust rent, and
- Unresponsiveness to your requests.
Request a Detailed Accounting
Under Section 6, they must provide a monthly report of expenses, receipts, and marketing costs. Request documentation of all marketing efforts (URLs, invoices, dates).
Formally Request Early Termination for Cause
Write to them explaining that you are terminating for cause due to:
- Failure to perform adequate marketing,
- Lack of communication and consultation, and
- Financial loss incurred due to their inaction.
Dispute the early termination fee on grounds of breach of duty and nonperformance.
Propose a Settlement: Offer to pay a small administrative fee (for example, $295) in exchange for a mutual release of further obligations.
Consider Mediation: Section 28 of the contract requires mandatory mediation before litigation. Suggest mediation to resolve the dispute if they resist.
If necessary, file a Complaint: Property managers in Washington are licensed by the Department of Licensing (DOL). If they misrepresented their services or failed to perform, you can file a complaint directly with the DOL.
If they still refuse to negotiate, you can bring a small claims case to recover damages or contest the fees.
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I need help getting out of a contract with a property management company (as a landlord) in Washington State.
Lexi, Chatbot
I understand that dealing with a contract can be stressful. How long have you been under this agreement?
Since May 7, 2025.
Lexi, Chatbot
Have you already communicated with the property management company about your desire to terminate the contract?
Not yet.
Lexi, Chatbot
Is there anything else the real estate lawyer should know before I connect you?
Yes.
Brandon
Hi there, my name is Brandon, and I’m an attorney. I’ll be happy to help you today. Please note this discussion is for general guidance only and does not establish an attorney-client relationship.
How can I assist?
My husband is active-duty military, and we own a home in Washington. We received PCS orders to South Carolina and hired a property manager to list and manage the house. We’re very unhappy with them. They’ve barely had any showings in two months. They listed the property before even consulting us, set an inflated rent price, and refused to adjust it even when we raised concerns. They’ve been unresponsive and can’t provide proof of any marketing other than their own website listing. When we pointed out inaccuracies in the listing, they were defensive and reluctant to fix them. Because of their incompetence, we’ve now paid two months of mortgage on an empty house. I don’t want to keep paying for their mistakes.
Can you help me figure out how to terminate the contract?
Brandon
Of course. Can you upload the contract?
I’m trying, but I can’t find an upload option here. I have it as a PDF and as images. Here’s a link through Adobe:
Did that work?
Brandon
Yes, I have it. One moment while I review the terms.
Brandon
Based on the agreement you signed, here’s what you need to know.
1. Term of the agreement and early termination
Your management agreement began on May 1, 2025 and has an initial one-year term (through April 30, 2026). Under Section 21, you can terminate the contract with 60 days’ written notice, but because you’re still within that first year, the early termination fees in Section 22 apply.
Section 22.1 states:
“In the event this Agreement is terminated within the Initial Term, Owner shall pay Agent an early termination fee in an amount equal to 10% of the potential gross monthly rent for the Property, whether or not the Property is leased or rented, for the remainder of the term or notice period, whichever is longer.”
So, for example, if your home was listed at $2,000 per month and you have 10 months left, the fee could be:
- $2,000 × 10 = $20,000 potential rent
- 10% of that = $2,000 termination fee
Additionally, Section 22.2 adds a $295 cancellation fee and reimbursement for any advertising costs if you cancel before a tenant is placed. Before panicking, there are several ways to challenge or negotiate these fees.
2. Misrepresentation or breach of contract
Even though the contract grants them wide discretion over pricing and marketing, they still owe you a duty of good faith and reasonable care under Washington law. If you can show that:
- They misrepresented their marketing efforts,
- Refused to consult you on pricing, or
- Ignored your documented requests to fix the listing,
you could argue they breached their duties. In that case, you would have grounds to:
- Dispute the early termination fee, or
- Negotiate a waiver or reduction due to their nonperformance.
3. Military PCS protections
As a military family, you may have additional leverage. The Servicemembers Civil Relief Act (SCRA) primarily protects tenants, not landlords, but many property managers in Washington will negotiate out of fairness and public policy considerations to avoid regulatory complaints or negative publicity. Even though your agreement doesn’t include a military clause, you can use your PCS orders as part of a good faith request for termination without penalty.
4. Recommended next steps
Document Everything
Save all communications showing:
- Lack of marketing proof,
- Refusal to adjust rent, and
- Unresponsiveness to your requests.
Request a Detailed Accounting
Under Section 6, they must provide a monthly report of expenses, receipts, and marketing costs. Request documentation of all marketing efforts (URLs, invoices, dates).
Formally Request Early Termination for Cause
Write to them explaining that you are terminating for cause due to:
- Failure to perform adequate marketing,
- Lack of communication and consultation, and
- Financial loss incurred due to their inaction.
Dispute the early termination fee on grounds of breach of duty and nonperformance.
Propose a Settlement: Offer to pay a small administrative fee (for example, $295) in exchange for a mutual release of further obligations.
Consider Mediation: Section 28 of the contract requires mandatory mediation before litigation. Suggest mediation to resolve the dispute if they resist.
If necessary, file a Complaint: Property managers in Washington are licensed by the Department of Licensing (DOL). If they misrepresented their services or failed to perform, you can file a complaint directly with the DOL.
If they still refuse to negotiate, you can bring a small claims case to recover damages or contest the fees.
Brandon
Did that explanation make sense and address your concerns?
Yes, that was very helpful.
Brandon
Glad to hear that. Thanks for reaching out, and best of luck resolving this quickly and fairly.
Brandon
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