Hiring a property manager should make your life easier. But what happens when it doesn’t?

Maybe your tenants are calling you directly because maintenance requests keep slipping through the cracks. Maybe you’ve been hit with hidden fees or vague financial reports. Or maybe you’re just not getting the communication you expected when you signed the contract.

If any of that sounds familiar, you’re not alone, and you’re not stuck.

Washington rental property owners have every right to cancel a property management agreement, but the process can feel confusing or even intimidating. What are the legal steps? Are there penalties? And how do you make a clean break without risking your rental income?

At SJA Property Management, we’ve spent the last 16 years making life easier for hundreds of landlords just like you, and in this guide, we’ll walk you through exactly how to cancel your property management contract the right way, with zero headaches, legal or otherwise.

1. Review the Terms of Your Property Management Agreement

Before you send a cancellation email or call your property manager, take a few minutes to review your signed agreement. This document holds the key to how and when you can cancel legally.

Most property management contracts include a termination clause that outlines:

  • How much notice you must give (commonly 30 days)
  • Whether a termination fee applies
  • When the termination takes effect (e.g., end of the month or lease cycle)
  • What happens with outstanding tenant issues or maintenance obligations


You’ll also want to look for any auto-renewal language. Some contracts renew automatically after 12 months unless you cancel in writing by a certain deadline.

If you can’t locate your contract or aren’t sure what to look for, request a copy from your current manager. They’re required to provide it upon request. And if anything seems unclear or overly restrictive, it may be worth having an attorney review it, especially if you’re dealing with a large portfolio or ongoing legal issue.

The goal here is simple: know exactly what you signed, so you can exit cleanly without surprises.

2. Review Your Rights Under Washington State Law

Washington State does not have a specific statute that governs how or when a property owner can cancel a property management contract, but that doesn’t mean you don’t have rights.

Property management agreements are treated as private business contracts, which means as long as the contract itself is lawful, enforceable, and not overly one-sided, the terms will usually stand. That’s why reviewing your specific agreement is step one.

But here’s what you need to know:

  • You can revoke management authority at any time. Even if your contract includes penalties or notice periods, you’re not required to keep someone managing your property against your will. You may owe fees, but you can still terminate.
  • Washington is a landlord-friendly state when it comes to property control. Owners retain full legal ownership and decision-making authority over their properties.
  • Penalties must be reasonable. If your contract includes a steep cancellation fee or restrictive clause, it may not hold up if challenged, especially if the manager has breached their duties.
  • Tenant rights must be respected. Canceling your management agreement doesn’t void the lease. Tenants still have a valid rental agreement, and you as the owner assume full responsibility for fulfilling it if no new manager steps in.

If your current manager isn’t complying with state or local housing laws, or if you suspect mismanagement, you may also have legal grounds to cancel early without penalty. In that case, consult with a landlord-tenant attorney familiar with Washington law.

Bottom line: Washington supports your right to change property managers, but the cleanest path is still through a contractually sound termination process.

3. Common Reasons Landlords Cancel

If you’re considering switching managers, chances are you’ve hit one or more of these pain points:

  • Unreturned calls or slow responses when you or your tenants need help
  • Surprise fees that weren’t clearly outlined when you signed the agreement
  • Vague or confusing financial reports that make it hard to track your income
  • Maintenance issues that go unresolved or are handled without your input
  • Poor tenant screening leading to late payments or property damage
  • Non-compliance with Washington rental laws that puts you at legal risk

If you’ve experienced any of the above, it’s a smart move to document specific incidents.

This might include:

  • Copies of unanswered emails or texts
  • Maintenance requests that were delayed or mishandled
  • Screenshots of incorrect statements
  • Notes from tenant complaints
  • Any written policies or agreements the company failed to follow

Why does this matter?

Because if your property manager tries to enforce a cancellation fee or contract clause, having a clear paper trail of mismanagement or neglect can help you negotiate or challenge the penalty.

And if things get more serious (like mishandled funds or Fair Housing violations), your documentation could be vital for legal protection.

4. How to Write a Proper Termination Letter

Once you’ve reviewed your contract and you’re ready to move forward, the next step is sending a formal termination notice. This doesn’t need to be complicated, but it should be clear, professional, and documented.

Here’s what to include in your termination letter:

  • Your name and contact information
  • Property address under management
  • Date of the letter and intended termination date (based on the notice period in your contract)
  • A clear statement that you are terminating the management agreement
  • A request for the return of keys, leases, tenant records, security deposit logs, and any other documents
  • Instructions for final rent disbursement and account closure
  • Your signature

Sample Letter

Subject: Termination of Property Management Agreement

Dear [Manager’s Name],

I am writing to formally terminate our property management agreement for the property located at [Property Address]. Per the terms of our contract, this letter serves as [X] days’ notice, with termination effective on [Termination Date].

Please coordinate with me to return all property-related documentation, tenant files, keys, and financial records. Kindly ensure all outstanding rent payments are disbursed and the account is closed by the effective date.

I appreciate your cooperation during this transition.

Sincerely,
[Your Full Name]
[Phone Number]
[Email Address]

It’s recommended to send your termination letter via both email and certified mail. This gives you a documented paper trail in case of any future disputes.

5. What Happens After You Cancel

Once your termination letter is sent and acknowledged, the transition begins. This phase is just as important as the cancellation itself, especially if you want to avoid confusion with tenants or missed rent payments.

Here’s what typically happens next:

Transfer of Documents and Keys

Your property manager should return all of the following:

  • Copies of leases and tenant contact info
  • Keys, garage remotes, or access codes
  • Maintenance records, open work orders, and vendor contacts
  • Security deposit documentation
  • Final accounting reports and remaining funds owed

Make sure to request these in writing and confirm when they’ve been delivered.

Notice to Tenants

Your tenants need to be informed of the management change. This can be done by you or your outgoing manager.

The notice should include:

  • Who will be managing the property going forward
  • Where and how to pay rent starting next month
  • Who to contact for maintenance requests

Failing to notify tenants can lead to missed rent payments or confusion about lease terms, so don’t skip this step.

Final Rent and Financial Wrap-Up

Your manager should issue a final disbursement of rent collected, along with a complete report of any outstanding expenses. Make sure the books are clean: no unapproved repairs, no unclaimed balances, no surprise deductions.

If any repairs or tenant issues are in progress, get a written summary so you can take over (or pass it to a new manager).

In short: canceling the contract ends their legal authority, but you still need to follow through with a clean handoff.

How to Avoid Cancellation Headaches in the Future

It never feels great to end up with a poor property management company, and while it often feels like random luck, there are some pretty consistent red flags to watch for when evaluating your next property manager.

Red Flags to Watch For in Future Contracts

Stuff like this is always a red flag:

  • Long-term lock-ins (12+ months) with no early termination clause
  • High cancellation fees that aren’t tied to actual costs
  • Vague responsibilities that leave too much gray area
  • Hidden fees for routine services like renewals or inspections
  • Poor communication policies or no clear point of contact

These are signs the company is protecting itself more than it’s serving you.

What a Better Contract Looks Like

Here’s what you should look for instead from a full-service property management company:

  • No long-term contracts. The manager should earn your business month-to-month
  • No cancellation penalties. You should be able to cancel anytime with no fees
  • A clear, transparent scope of service
  • A dedicated property manager and a team to support them
  • Fast, friendly communication guaranteed within 24 business hours

We’ve modeled our own policies and contracts off these principles at SJA Property Management, and we’d love to work with you. Get your free rental analysis or schedule a call with our team today.

Questions to Ask a New Property Management Company:

And whether you call us or continue shopping around, make sure to ask the following questions.

  • How do you screen tenants, and what’s your eviction rate?
  • What’s your communication policy? (Can I reach you directly? How fast do you respond?)
  • What’s included in your monthly fee, and what costs extra?
  • Do you offer a satisfaction guarantee or allow month-to-month contracts?
  • How do you handle maintenance and after-hours emergencies?
  • Will I have access to an online portal for statements and updates?
  • Can I cancel at any time without penalties?

These questions will help you separate professional, owner-focused managers from the ones that leave you chasing down answers.

Next Steps For Washington Landlords

Canceling your property management contract doesn’t have to be messy or overwhelming, especially when you know your rights and follow the right steps. Whether you’re fed up with missed maintenance, unclear fees, or just ready for a higher standard of service, you deserve a manager who makes your life easy.

If you’re navigating this process now, start with your contract, document your reasons, and make the transition clean and professional. And when you’re ready for a better experience, don’t just sign with the first company that returns your call.

SJA specializes in property management for Seattle, Eastside,and the surrounding Puget Sound areas. We’ve built our entire model around making life easier for property owners:

  • No long-term contracts
  • No cancellation fees
  • Transparent pricing
  • A 98% on-time rent payment rate from our screened tenants
  • Communication guarantees and dedicated support staff
  • Full service, zero stress

Ready to see what stress-free management looks like?

Get your free rental analysis or schedule a call with our team today.