Resident managers are the foundation of any good property management scenario. They are the on-site person that both tenants and owners turn to when needing repairs or enforcing contracts. A good resident manager is a benefit to all parties involved in the lease. However, when you must terminate a resident manager, following some simple guidelines will make your task easier.
Consider an open-ended contract when you hire a resident manager to protect your rights in terminating him should a problem arise. As opposed to a contract for a specified time period, you may fire a manager at any time with an open-ended contract.
Determine the legality of your reasons behind the firing. Be prepared to show a good business-related cause for terminating and evicting the manager to avoid a wrongful termination lawsuit. Valid reasons include; poor job performance, possession of a weapon on the premises, engaging in illegal drug activities and illegal discrimination.
Reconsider firing and evicting a resident manager for reasons based upon age, race, gender or familial status. Firing for those reasons are against the law. In addition, you may not fire him for reporting any illegal acts of yours to the proper authorities.
Provide ample warning of a pending termination by giving your resident manager written notification when undesirable job performance first occurs. By holding regular periodic job evaluations, you provide ongoing feedback and the firing will not come as a surprise.
Include a clause in the resident manager's hiring contract, stipulating that you may end his employment at any time and for any reason, as long as it isn't for an illegal reason.
Evict the resident manager as a condition of his termination. Allow him a reasonable amount of time to vacate the premises and take legal action if he does not comply in accordance with your State's laws. (See Resources)
Stay tight-lipped when future prospective employers call for a reference on the manager you fired. You may want to tell the truth but keep in mind that you are legally liable if you say something negative. Telling the inquirer that you have a policy not to comment on a former manager may deter them and protect you.