Legal Term
property management fee increase notice requirement
Legal Definition
A contractual provision in a property management agreement that obligates the property manager to provide advance written notice to the property owner prior to implementing any increase in management fees, typically specifying the new fee amount, effective date, and often granting the owner the right to accept or terminate the agreement.
In Plain English
A rule that requires a property manager to inform you in writing before raising their fees, giving you time to agree, negotiate, or find a new manager to avoid surprise costs.
Example in a Contract
Section 7. Fee Modifications. Property Manager shall not adjust the monthly management fee without first delivering written notice to Owner at least forty-five (45) days prior to the proposed effective date. Such notice must detail the revised fee percentage or amount. Owner may consent to the increase by continuing under this Agreement or terminate this Agreement effective as of the notice date by providing written response within fifteen (15) days of receipt.
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