. When reviewing property management contracts, the first thing you'll look for and the first essential part of the property management contract are fees and services. It is important to understand the services that the property manager will provide along with the fees charged for the services. Equal opportunity housing is an essential part of a property management agreement.
Make sure there is a section that clearly states that they support equal opportunities in housing. The liability clause helps protect the property manager (except in cases where it is considered negligent, for example, when a contractor hired by the property manager causes damage to the property). If you are going to have a contract for at least one year, you should carefully review the termination clause. Make sure that you can terminate contracts if you find something unsatisfactory in their service or if you are no longer satisfied with what they are offering you.
The termination clause is a very important part of the property management agreement. This clause will tell you under what circumstances you or the property manager can end the relationship that was bound by the agreement. Terminating the relationship prematurely entails penalties or costs, so be sure to read this part of the agreement carefully. If the property management company terminates the contract, you must notify you 30 days before terminating the contract.
A contract that can be terminated without cause must have 30 days' notice. And if you don't want the termination of the contract to entail any penalty, it's recommended that the termination date reflects the exact expiration date of the contract term. Get started with a FREE consultation by calling our property management specialists today at 520-332-4114 using our simple contact form. Both the owner and the property manager have a responsibility to discriminate against individuals based on race, sex, religion, sexual orientation, disability, or other identifying characteristics.
When reviewing property management contracts, you should have a basic understanding of what your agreement should include and what is important or necessary to manage the property you want to manage. In the event of cancellation of the contract, deposits, reserves and other money that the property management company holds on behalf of the owner of the rental property must also be accounted for. Often, on the part of services excluded from the contract, it is important to detail whether the owner or property management company is responsible for the costs associated with certain types of property improvements, etc. If the property management agreement is not exhaustive for the property, you should know what is included in the management fees and what is not included, and understand the services that the manager will not provide or that it is his responsibility to provide.
For example, this section could protect the manager if tenants or other interested parties damage the rented property. The management fee may also include property manager services that deal with property inspections, maintenance management, and emergency maintenance calls. Creating a property management agreement will create an objective framework for managing the relationship and ownership. In most cases, a property management company won't sign a contract that only lasts less than a year.
Property managers who charge a lower initial fee may be charging more for “additional tasks” such as filling vacancies, paying bills, maintenance issues and eviction procedures. In this part of the property management agreement, you can also stipulate your minimum requirements for rental property insurance that landlords must obtain. Irresponsible behavior that causes harm by contractors, employees, or hired tenants is not the responsibility of the property manager. Having a thorough understanding of the content of the agreement will help you be more prudent when negotiating your contract with a property management company.