Property management is built on trust. When an owner signs a management agreement, they expect that their property, tenants, and financial interests will be handled with professionalism and care. But what happens when a property management company fails to deliver on those promises?
This is where breach of contract comes into play, a serious issue that can cost landlords money, reputation, and peace of mind.
At Green Casa Property Management, we believe transparency and accountability are the foundation of every successful partnership. Here’s what every property owner in Calgary should understand about breaches of contract, and how to protect themselves.
What Does “Breach of Contract” Mean?
A breach of contract happens when one party fails to uphold their end of a legally binding agreement.
In property management, this typically refers to a company’s failure to perform agreed-upon services, such as:
- Collecting rent on time and remitting payments to the owner.
- Maintaining the property as outlined in the contract.
- Conducting regular inspections or communicating repair issues.
- Handling tenant screening, lease renewals, or evictions as promised.
These are not just operational missteps; they’re legal violations that can have financial and emotional consequences for property owners.
Common Examples of Property Management Breaches
- Failure to Collect or Distribute Rent
Owners rely on property managers for consistent rent collection. If a management firm repeatedly fails to collect or forward payments, it could be considered a breach of fiduciary duty and contract. - Neglecting Maintenance or Repairs
Ignoring maintenance requests, delaying essential repairs, or failing to inspect the property as required in the agreement can lead to tenant dissatisfaction, property damage, and legal exposure. - Lack of Communication or Transparency
When a management company goes silent, not providing financial statements, inspection reports, or updates, it breaks the trust that owners rely on. This lack of accountability can easily become a contractual breach. - Misuse of Funds or Security Deposits
Mismanagement or mishandling of client funds is not only a breach of contract it’s a serious legal issue that could result in financial penalties or even license suspension.
What Owners Can Do If a Contract Is Breached
If a property management company fails to fulfill its duties, owners are not powerless. Here are key steps to take:
- Document Everything
Keep written records of communication, contracts, invoices, and promises made. This evidence will be essential if legal action becomes necessary. - Attempt Resolution First
Sometimes, breaches stem from misunderstandings or miscommunication. Send a formal written notice outlining the issue and requesting resolution. - Consult a Real Estate or Contract Lawyer
If the management company fails to correct the issue, it’s time to seek legal advice. In Alberta, property owners can sue for damages or terminate the contract if the breach is significant. - Hire a Trustworthy Replacement
Once you end the agreement, look for a management firm that values transparency, ethics, and consistent performance like Green Casa Property Management.
How Green Casa Protects Property Owners
At Green Casa, we see property management as more than collecting rent or fixing things; it’s about trust, accountability, and long-term partnership.
Here’s how we make sure owners never face a breach of expectations:
- Clear contracts, no fine-print surprises: We outline every service, deadline, and responsibility in writing.
- Transparent communication: Owners receive regular updates, inspection reports, and 24/7 access to property information.
- Timely maintenance and rent handling: Every transaction is logged, tracked, and delivered with accuracy.
- Legal compliance and ethics: Our team follows the Residential Tenancies Act in Alberta and industry best practices to the letter.
When Green Casa commits, we keep it, because your investment deserves nothing less.
Final Thoughts
A breach of contract can turn what should be a passive income experience into a legal headache. But with the right property management company, you never have to worry about missed payments, neglected maintenance, or broken promises.
At Green Casa Property Management, our mission is simple: to deliver reliability, professionalism, and peace of mind to every property owner we serve across Calgary and the surrounding communities.
Because great management isn’t just about doing the job, it’s about doing it right, every single time.
