Before signing the property management agreement, it is essential to go through the whole agreement. However, the legal terms used in the agreement may sound alien to normal people. This can affect their understanding level of the agreement resulting in them making a wrong decision. Following are the 6 main parts in a property management agreement:
Fees for the Services
It is important to understand and be clear about the type of services provided by the property manager as well as the fees charged on it. Do not just compare the fees of the different property managers as some of them may charge a higher pay but also include additional services in it while some may charge a lower fee without any additional services like quick property sale.
The representation of the responsibilities of the property owner is in the second part of the agreement. This part includes all the things that a property owner has to do including setting up and maintaining reserve funds as well as obtaining and maintaining the proper insurance.
Equal Opportunity Housing
This section will make sure that the contract is following all the rules and regulations needed to maintain fairness and equality when dealing with different properties.
This section is also known as the hold harmless clause as it limits the property manager’s liability. This section protects the property manager unless the fault lies in the work of the property manager.
That contract duration is an important part of the contract as it binds you. Most of the companies do not sign a contract for less than a year but you need to make sure that you do not sign a long term contract.
This section will state the situations where it will be legal to terminate the contract.