A lot of owners can’t remember the terms and conditions of their contract. It’s often not something they think about until they want to make a change.
You could argue that owners should be more careful about what they sign, but I would argue that the onus is on the company to discuss these terms in earnest with their client, and in that way eliminate any confusion.
One common ‘clause’ for concern is the Exit Fee. This is where the company charges the owner (typically) $500 or $600 to terminate their agreement.
A couple of examples
- The owner is selling the house
- The owner wants to terminate the agreement within the first 12 months
Some companies will even start the clock again once they have renewed the lease or started a new tenancy. This clause ensures that the owner is locked into another 12-month term, or length of the lease, whichever is longest.
The easiest way to ensure a full understanding is to go through the document together, ask questions before signing, and don’t be afraid to negotiate on these types of clauses. Having this conversation upfront will be a good indicator for the type of relationship you can expect going forward.