Everything You Need to Know About Property Management Contracts

Looking to rent out that extra home that’s been sitting vacant for years but no family members have interest in living in? Why not earn some extra cash and rent it out? The best way to rent out a property is to hire a property manager.

Under a property management contract, property managers serve as the middle man between you and your tenants and deal with all of the nitty-gritty work involved with maintaining a house or condo. Some property manager duties include:

1. Providing regular maintenance and repairs for your building
2. Allowing you to have access to a certified professional when it comes to helping you pay taxes and cutting costs
3. Dealing with evictions, move-ins, move-outs, and advertising your property to prospective tenants

What is the contract? This piece of paper (it should be in print form) should not be taken lightly; it is the deciding factor of what services you will or will not receive from the company and the property manager. It will explain in full detail the property management fees as well as what rights you have in the business relationship.

Why is it important? Would you want to meet your property manager before deciding to hire him or her? You wouldn’t bypass looking at property management websites before choosing a company, right? If these aspects of renting are important to you, then choosing to read the contract is equally as important. This contract is designed to void any confusion about fees, length of the contract, etc.

What it can tell you: Don’t be fooled by the pleasant demeanor of your property manager. If their contract is not spelled out completely, you may want to rethink your decision, or at least have them clarify. Always read the fine print of a property management contract to make sure you don’t get nabbed with a large bill for some obscure leak that needed fixing.

No contract, no business: Never wait until the end of your property manager search to ask for this important piece of paper. If the manager has made a good impression, ask for a copy of their contract at the end of your first meeting, that way you will have a chance to look it over and ask any questions you might have, without feeling the pressure to sign that dotted line.

If you have any further questions about property management contracts, it may be helpful to ask your lawyer to explain the more complicated sections. References: rpmlv.com