A property management agreement is a legally binding contract that outlines the responsibilities of both the property manager and the property owner. This agreement is crucial as it establishes clear expectations for both parties and helps prevent misunderstandings.
If you`re a property owner and are looking for a property management company to oversee your property, it`s essential to review a sample contract property management agreement before signing anything. This article will highlight some key elements that you should look out for in a property management agreement.
Services Offered
The agreement should outline the services that the property manager will provide. These services may include rent collection, maintenance and repairs, tenant screening and selection, and evictions. It`s important to ensure that the agreement covers all the services that you require. You may also want to check that the contract includes any additional services that the property manager may offer, such as marketing and advertising services.
Fees and Payment Terms
The agreement should clearly state the fees and payment terms. You should ensure that you understand all the aspects of payment, including how much you will be charged, the methods of payment, and how often you will be billed. Some property management companies may charge a flat fee, while others may charge a percentage of the rent collected. You may also want to check if there are any hidden fees or additional charges.
Termination Clause
The agreement should include a termination clause that outlines the circumstances under which the contract may be terminated. This clause should also indicate the notice period required before terminating the contract. It`s essential to ensure that you understand these provisions as they may have significant financial implications.
Responsibility of Each Party
The agreement should outline the responsibilities of both the property owner and the property manager. This includes things like maintenance and repairs, rent collection, tenant screening, and selection, and evictions. It`s important to ensure that both parties are clear on their responsibilities to avoid misunderstandings and disputes.
Liability Insurance
The agreement should indicate if the property manager has liability insurance. Liability insurance is essential as it protects the property manager from financial loss in the event of any legal action taken against them by a tenant or third party.
In conclusion, if you`re a property owner looking for a property management company, ensure that you review a sample contract property management agreement carefully. This will help you understand what to expect from the company and avoid any misunderstandings or disputes. Don`t hesitate to ask questions or seek clarification if anything is unclear before signing the agreement. A well-drafted contract can help protect your investment and ensure a smooth working relationship between you and the property management company.