Renting real estate can lead to the management of unexpected administrative and technical details. If you don’t want to take care of all this, you can delegate this management. In general, property managers are the most empowered to do this. However, if this alternative is advantageous, it is better to ensure that you have a good understanding of the clauses of the contract before signing it.
What can be the reasons for terminating the management mandate?
As the management mandate is a contract, it concerns two parties, namely a principal and an agent. In the first case, it is the person who owns the assets of which he wishes to delegate management. As for the agent, he is in charge of the management of the patrimony or the real estate. If the said heritage relates to financial assets, it is a portfolio management mandate.
When it comes to real estate, we speak of a rental management mandate. Among the mandatory clauses it contains, we find the due date as well as that of the notice. It is on the basis of this information that the contract may be terminated. This prevents both parties from having any disputes at the time of termination of said contract.
Cancellation on the anniversary date
It is possible to terminate a management mandate when it expires. Generally, this is done after one year, the date corresponding to the anniversary of the contract. To put an end to it, the principal must simply send a termination letter to the agent.
It should be noted that the sending of this letter must be done in the scrupulous respect of the notice period. To avoid surprises, the latter is mentioned in the contract which has already been signed by both parties.
The length of this notice period generally varies between one and three months. In addition, the agent must inform the principal as soon as the anniversary date of the contract is approaching. This reminder can be done 3 months before the start of the notice period. This allows the principal to terminate the contract at a later date, without having to pay additional costs.
Cancel if you have not been notified of the renewal
The manager is obliged to inform the principal of the possibility to terminate the contract before it expires. Legally, he is required to do so. If he does not assume this responsibility to inform you before the period indicated, you have the option of terminating your contract free of charge.
This is because this would assume that you had not been notified of the renewal. You will therefore be entitled to terminate the contract without having to pay penalties to the manager.
Cancel for serious misconduct
In the event that the manager fails to fulfill one of his duties, the principal has the possibility of terminate the contract with immediate effect. However, be aware that this could cause complications. The attorney could bring you to justice if they feel they are being accused unfairly.
To avoid unnecessary conflicts, certain faults are recognized by law as being liable to termination of the contract. For example, if he does not request a joint surety for a tenant in CDD. Also, if he fails to verify the authenticity of documents provided by a tenant, etc.
Cancel to sell
Are you planning to sell your property? This is one of the best reasons for terminating a management contract. In this case, on the other hand, penalties may apply. But you have the option to bypass them.
For example, you could mention in the contract that in the event of a sale, the mandate must end without penalties. If the attorney agrees with you on this point, you will not have to pay any fees if this situation arises.
A transparent transfer for the tenant
In the event of termination of the rental management mandate, nothing changes on the side of the lease with tenants. This means that the terms of the contract remain the same. All you have to do is notify the tenant that they will need to change the address they send their payment to. It’s up to you to provide this new address.
He will also have to know who is the new manager he will be dealing with. Obviously, all files that were handled by the former representative must be returned to you. If you opt for a new manager, he can take care of these steps. Otherwise, you will have to get started.
Unpaid rent insurance linked to the management contract
Your former manager may have purchased unpaid rent insurance. Generally, this is no longer valid from the moment the management mandate is terminated. However, you have the possibility to recover this guarantee as quickly as possible.
It should therefore be done quickly before another incident occurs in the wake. In addition, to benefit from it, it is sufficient that the tenant has not had any delay or unpaid bills in the 6 months preceding the request.