Attention Homeowners!

As the summer season approaches, there’s an essential task that often slips under the radar:
checking your property management contract renewals.

The Automatic Renewal Quirk
Many homeowners are blissfully unaware that their management company contracts come with
an automatic renewal feature. Yes, you read that right—no need to sign anything; the contract
quietly renews itself. Most of these auto-renewals kick in mid-summer, catching homeowners off
guard and obligating themselves to continue using the same property manager for the next
calendar year (or longer) or be subjected to significant termination fees.

The Duration Dilemma
Here’s where it gets interesting. Some contracts span a cozy one-year term, while others have
stretched to two-year renewals or longer. Now, if you plan to continue owning your beloved
beach house, this is all well and good. But what if you’re considering a sale?

The Buyer’s Perspective
Picture this: A potential buyer falls head over heels for your Hatteras Island home. They dream
of sipping coffee on the porch, watching sunrises, and creating cherished memories. But
wait—the house is locked into a multi-year contract. Suddenly, their vision dims. They want to
occupy the home, use it as their personal getaway, or perhaps rent it out themselves. The
auto-renewal becomes a hiccup.

Your Listing Strategy
If you’re contemplating listing your home soon, pay attention to those contract periods. Is your
home on auto-renewal? It’s a crucial question. Transparency matters, especially when potential
buyers are scouting for their own slice of paradise.
Stopping The Auto-Renewal Process
Homeowners who wish to cancel their auto-renewal contract can take the following steps: *

  1. Certified Mail Notification: Send a certified mail notification to your property manager.
    This formal communication ensures a documented record of your intent to cancel the
    contract’s auto-renewal process.
  2. No, Auto-Renewal Does Not Mean No Future Management Option: When you stop
    the auto-renewal process, you can still renew your Property Management Agreement
    later. You just leave the options open and give potential buyers a chance to choose
    whether they want to take on the same obligation that you might have had with your
    rental manager.
  3. Timing Matters: Be proactive! Notify your property manager well in advance of the
    renewal date. This allows sufficient time for processing and avoids any unintended
    renewals.

*Check your Property Management Agreement to confirm the terms and cancellation policies as
this may differ from company to company.

Why Choose NC 12 Realty?

Reach Out Today

Don’t let auto-renewals catch you off guard. If you’re pondering your options, curious about the details, or simply want a chat, reach out to us at 252-995-6212 or drop us an email at info@nc12realty.com. Your coastal dreams deserve clarity, and we’re here to provide it.

Remember, the tides may change, but our commitment to your real estate journey remains unwavering.