Getting out of property management contract

Question from David updated on 5th February 2020:

We wish to change property managers, our current one does not wish us to move as we have a fixed term agreement with our tenants. They have brought to our attention clause 9 in the property management agreement which basically means that we have to stay with them until the tenancy contract has ended. How do we get out of this contract?

Our expert Bernard Parker responded:

You acknowledge that you have a contract with your property manager which requires their management to continue to the end of the current tenancy. However, you have not said why you want to change property managers. Simply wanting to break your contract is not good enough reason. You will need to establish that the property manager has failed in its duty to you as your agent. This is possibly an issue that the Disputes Tribunal will hear. However, if you cannot establish a serious failure on the part of your property manager you will be unlikely to succeed in terminating the management contract.

Bernard is principal of Quinovic – Kapiti-Mana. Quinovic's outstanding people and systems provide the most professional, effective and reliable residential property management service in the NZ market for over 30 years.

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