I currently own a rental property in Utah and I have a renter who signed a contract for a year's time. I hired a management company to oversee the property. The contract was signed between the renter and the management company using the management's contract. 6 months into the contract I fired the management company for doing a poor job and six months have passed since then so the year contract has expired. After the contract ended, I have not had the tenant sign a new contract and they have been paying me month to month. Two questions: Since the original contract included a management company as agent to me as the owner, is the contract still enforceable even though they are no longer part of the picture? Second, when they pay me rent each month, are they still bound by the old contract and what legal rights to I have as a landlord. They are moving out at the end of next month and I'm curious if I can enforce any of the original contract or whether I am out of luck if anything goes wrong with the property.

Yes, you have rights. The management company had limited POA ( Power Of Attorney) to act in your behalf for this rental. The contract is still valid as far as any deposits or wording like first and last plus. If that was in there its still in effect. But as far as the fee goes your still bound to the rate until such a time as you change it. Was there an automatic renewal clause in it? Did it specify a amount of time they had to notify you if moving? What is your current worry?

My worry is that the contract stated a specific start and end date. After the contract ended we didn't have them sign a new contract so I'm hoping the terms of the original contract are still enforceable. There was no automatic renewal clause but the tenant kept sending me monthly rent so I was comfortable with the contract shifting to a month to month rent. The tenant has found a new place and has properly notified me they are moving. They are asking that I use the deposit as last month's rent. I'd prefer not to do this not because I don't trust the tenant but because it makes the most sense to me to safeguard my investment against any unforeseeable problems. Having the deposit be applied for rent goes against what the contract states so I just wanted to make sure that I have a contract to stand on.

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Originally Posted by eee_rock

Two questions: Since the original contract included a management company as agent to me as the owner, is the contract still enforceable even though they are no longer part of the picture? Second, when they pay me rent each month, are they still bound by the old contract and what legal rights to I have as a landlord. They are moving out at the end of next month and i'm curious if i can enforce any of the original contract or whether I am out of luck if anything goes wrong with the property.

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Hello eee:

You either FIRED the management company, or their contract expired at years end. It can't be BOTH. When you fired them, their contract ended.

Their past involvement in your agreement has no bearing on your present rights. Your management company signed a lease with them representing YOU. They departed. YOU didn't. The only thing that changed in your contract/lease is the term. If it wasn't renewed, or doesn't have an automatic renewal clause, it reverts to month to month. All other parameters are still in place.

Of course, as dad said, you are going to be responsible for the deposit. If your agent had them, hopefully, you got them when you fired them.

excon

The way to look at is this: there are two contracts:

1, the management contract. This contract has terminated, but it presumably gave the management company authority to enter into the second contract,

2. the lease agreement. This is also expired, but it still controls the terms of the lease, except that the tenants are holding over as month-to-month tenants. If it provides for how the deposit is to be used, and whether the last month's rent can be paid out of the deposit, it of course governs. If it doesn't so provide,

The tenants owe you the last month's rent and if they don't pay you, you can sue them for it. Of course their theory would be that, if there are no damages, etc. and if they woud otherwise be entitled to the deposit when the leave, it will work out the same way. No way to tell until they are out. But if they don't pay the last month's rent on time they are, technically, in breach of the lease.