What to Look for in a Property Management Agreement

If you own a rental property, you may be considering hiring a property management company to manage it for you. This can be a great way to free up your time and have peace of mind knowing that your property is in good hands. However, before you hire a property management company, it's important to carefully review the property management agreement. This document will outline the responsibilities of both you and the property management company, so it's important to make sure that you understand everything before you sign it.

Here are some key things to look for in a property management agreement:

• Services and fees. The first thing you'll want to do is make sure that the property management company is providing the services that you need. Some common services that property management companies provide include:
  • Rent collection
  • Tenant screening
  • Maintenance and repairs
  • Leasing
  • Accounting
  • Marketing
  • Evictions

You'll also want to make sure that you understand the fees that the property management company charges. These fees can vary depending on the company and the services that they provide. Some companies charge a flat fee, while others charge a percentage of the rent.

• Responsibilities of the property owner. The property management agreement should also outline the responsibilities of the property owner. These responsibilities may include:
  • Providing access to the property
  • Paying for any necessary repairs or maintenance
  • Approving all new tenants
  • Reviewing all leases and other contracts
  • Paying the property management company's fees
• Termination clause. It's important to have a termination clause in the property management agreement. This will allow you to end the relationship with the property management company if you're not satisfied with their services.
• Equal opportunity housing. The property management agreement should also state that the property management company will comply with all applicable fair housing laws. This means that they will not discriminate against tenants based on race, religion, national origin, sex, familial status, or disability.
• Liability. The property management agreement should also address who is liable for any damages that occur to the property. In most cases, the property owner will be liable for any damages that are caused by the negligence of the property management company.
• Indemnification. The property management agreement should also include an indemnification clause. This clause will protect the property owner from any losses or damages that are caused by the negligence of the property management company.
• Dispute resolution. The property management agreement should also include a dispute resolution clause. This clause will specify how any disputes between you and the property management company will be resolved.
• Signatures. The property management agreement should be signed by both you and the property management company. This will ensure that both parties are bound by the terms of the agreement.

By following these tips, you can ensure that you have a strong property management agreement that protects your interests.

Quick Template for a Property Management Agreement

Here is a quick template for a property management agreement:

• Introduction

This agreement is made between [Property Owner Name] (the "Owner") and [Property Management Company Name] (the "Manager").

• Services

The Manager agrees to provide the following services to the Owner:

* Rent collection
* Tenant screening
* Maintenance and repairs
* Leasing
* Accounting
* Marketing
* Evictions

• Fees

The Manager will charge the Owner the following fees:

* Flat fee: [Amount]
* Percentage of rent: [Percentage]

• Responsibilities of the Owner

The Owner agrees to the following responsibilities:

* Provide access to the property
* Pay for any necessary repairs or maintenance
* Approve all new tenants
* Review all leases and other contracts
* Pay the Manager's fees

• Termination

This agreement may be terminated by either party upon [Number] days' written notice to the other party.

• Equal Opportunity Housing

The Manager agrees to comply with all applicable fair housing laws.

• Liability

The Owner will be liable for any damages that occur to the property.

• Indemnification

The Manager agrees to indemnify the Owner for any losses or damages that are caused by the negligence of the Manager.

• Dispute Resolution

Any disputes between the Owner and the Manager will be resolved through binding arbitration.

• Signatures

[Property Owner Signature]

[Property Management Company Signature]

Frequently Asked Questions:

What are three things a management agreement should contain?

1. Services and fees. The agreement should clearly state the services that the property management company will provide, as well as the fees that will be charged.
2. Responsibilities of the property owner. The agreement should also outline the responsibilities of the property owner, such as providing access to the property and paying for any necessary repairs.
3. Termination clause. The agreement should include a termination clause that specifies how either party can end the relationship.

What do property management agreements usually represent?

Property management agreements typically represent a long-term relationship between a property owner and a property management company. The agreement can be for a fixed term, such as one year, or it can be open-ended.

What is the owner's responsibility in the management contract?

The owner's responsibilities in a property management contract typically include:

• Providing access to the property to the property management company
• Paying for any necessary repairs or maintenance
• Approving all new tenants
• Reviewing all leases and other contracts
• Paying the property management company's fees

What is the indemnification clause in a property management agreement?

An indemnification clause is a provision in a contract that requires one party to protect the other party from any losses or damages. In a property management agreement, the indemnification clause typically protects the property owner from any losses or damages that are caused by the negligence of the property management company.

Here are some additional things to keep in mind when drafting a property management agreement:

• Make sure that the agreement is clear and concise.
• Use plain language that is easy to understand.
• Get everything in writing.
• Have an attorney review the agreement before you sign it.

For further reference, see the Fair Housing Act