[WA] [WA] Can you review my property management contract and help me get out of it?
I need help getting out of a contract with a property management company (as a landlord) in WA State.
16
7
Solved
1. Term of the Agreement and Early Termination
Your management agreement started on May 1, 2025, and has an initial one-year term. This means it runs through April 30, 2026.
- Under Section 21, you can terminate the contract with 60 days’ written notice, but because you are still within that first year, the early termination fees in Section 22 apply. Specifically:
- Section 22.1 (Early Termination Fee) says: “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.”
Example: If your property was listed at $2,000/month rent, and you have 10 months left in the term, the early termination fee could be:
- 10 months x $2,000 = $20,000 potential gross rent
- 10% of that = $2,000 fee
Section 22.2 (Cancellation Fee) says: If you cancel before the property is rented, there’s a $295 cancellation fee plus all advertising costs incurred.
Before you panic, there are a few ways you may be able to challenge or negotiate this.
2. Misrepresentation or Breach of Contract
Although the contract gives them broad discretion over marketing and pricing (Sections 4.1 and 4.4), Washington law requires property managers to act in good faith and with reasonable care.
If you can prove they:
- Misrepresented their marketing efforts (e.g., claimed advertising they never did)
- Refused to consult in good faith about pricing despite clear evidence the rent was too high
- Ignored your documented requests to correct listing inaccuracies
You could argue they breached the contract, giving you grounds to challenge the early termination fee or negotiate a waiver.
3. Military PCS Protections
While the federal Servicemembers Civil Relief Act (SCRA) mainly protects service members as tenants, Washington law and public policy often favor accommodations for military families. Even though your contract lacks a military clause, some property managers will negotiate to avoid bad publicity or regulatory complaints.
4. Recommended Next Steps
- Document Everything: Keep emails, screenshots, and records showing poor marketing, lack of communication, and pricing disputes.
- Request a Detailed Accounting: Ask for proof of all marketing efforts, advertising invoices, and justification for the initial rent price.
- Formally Request Early Termination for Cause: State that you are terminating due to breach of duties and dispute any termination fees.
- Propose a Settlement: Offer a reasonable flat fee (e.g., $295) for mutual release.
- Consider Mediation: Required under Section 28 before litigation.
- File a Complaint if Necessary: Washington State Department of Licensing regulates property managers.
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I need help getting out of a contract with a property management company (as a landlord) in WA State.
Lexi, Chatbot
I understand that dealing with a contract can be quite stressful. Can you please share how long you have been under this contract with the property management company?
Since May 7, 2025.
Lexi, Chatbot
Have you already attempted to communicate with the property management company regarding your desire to terminate the contract?
Not yet.
Lexi, Chatbot
Is there anything else the real estate lawyer should know before I connect you? Rest assured they’ll be able to help with terminating your contract.
Brandon
Hi there and welcome to AskALawyer. My name is Brandon, and I'm an attorney. I'd be happy to help you out today. Please note that this discussion is for guidance only and does not constitute an Attorney-Client Relationship. My answers and comments should not be considered legal advice.
Please also note that I am human, and I often need to research your answer to give you an accurate response. I work with other customers and may step away from time to time. So please be patient while waiting for a response. If more than 30 minutes have passed, feel free to reach out.
How can I assist?
Brandon
I need help getting out of a contract with a property management company (as a landlord) in WA State.
Brandon
What is the reason you are trying to get out of the contract?
My husband is active duty military, and we own a home in WA state. We received orders to PCS to SC and hired a property manager to place tenants and manage the house. We are wildly unhappy with the managers, who have barely had any showings on our house in 2 months. They picked an amount and listed the house before ever consulting us. They picked absolute premium rent prices without discussing the fact that it would take significantly longer to place a tenant in an overpriced house.
They have been uncommunicative and claimed to do a bunch of marketing but cannot produce any URLs outside of the listing on their website. When we complained about the poor listing they made, with lots of inaccuracies, they were annoyed we asked for changes and fought us hard about lowering the rent price.
Two months mortgage on an empty house because of their greed and incompetence.
Is there a way that I can upload our contract for you to review? My understanding is that they charge $300 and marketing fees to break the contract. We obviously do not want to pay that after the experience we have had, as well as the financial loss we continue to carry with an empty house.
Brandon
How many pages long is the contract?
12.
Brandon
I can review it, but it will require more time, and there is an additional fee. I can send an offer if you would like.
Yes, please.
[UPLOADS DOCUMENT]
Brandon
1. Term of the Agreement and Early Termination
Your management agreement started on May 1, 2025, and has an initial one-year term. This means it runs through April 30, 2026.
- Under Section 21, you can terminate the contract with 60 days’ written notice, but because you are still within that first year, the early termination fees in Section 22 apply. Specifically:
- Section 22.1 (Early Termination Fee) says: “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.”
Example: If your property was listed at $2,000/month rent, and you have 10 months left in the term, the early termination fee could be:
- 10 months x $2,000 = $20,000 potential gross rent
- 10% of that = $2,000 fee
Section 22.2 (Cancellation Fee) says: If you cancel before the property is rented, there’s a $295 cancellation fee plus all advertising costs incurred.
Before you panic, there are a few ways you may be able to challenge or negotiate this.
2. Misrepresentation or Breach of Contract
Although the contract gives them broad discretion over marketing and pricing (Sections 4.1 and 4.4), Washington law requires property managers to act in good faith and with reasonable care.
If you can prove they:
- Misrepresented their marketing efforts (e.g., claimed advertising they never did)
- Refused to consult in good faith about pricing despite clear evidence the rent was too high
- Ignored your documented requests to correct listing inaccuracies
You could argue they breached the contract, giving you grounds to challenge the early termination fee or negotiate a waiver.
3. Military PCS Protections
While the federal Servicemembers Civil Relief Act (SCRA) mainly protects service members as tenants, Washington law and public policy often favor accommodations for military families. Even though your contract lacks a military clause, some property managers will negotiate to avoid bad publicity or regulatory complaints.
4. Recommended Next Steps
- Document Everything: Keep emails, screenshots, and records showing poor marketing, lack of communication, and pricing disputes.
- Request a Detailed Accounting: Ask for proof of all marketing efforts, advertising invoices, and justification for the initial rent price.
- Formally Request Early Termination for Cause: State that you are terminating due to breach of duties and dispute any termination fees.
- Propose a Settlement: Offer a reasonable flat fee (e.g., $295) for mutual release.
- Consider Mediation: Required under Section 28 before litigation.
- File a Complaint if Necessary: Washington State Department of Licensing regulates property managers.
Brandon
Did you understand my answer, and did it address your concern?
Brandon
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