As a property owner, one of the most crucial decisions you will make is selecting the ideal property management company to oversee your properties. A competent property management company can mean the difference between success and failure and ultimately maintain the value of your property.
To ensure that there is a clear understanding between you and your property management company, it is critical to have a well-written property management contract in place.
A property management contract is a legally binding agreement that outlines the responsibilities and obligations of both you and your chosen property management company. It is essential that you take time to read the contract thoroughly before signing it; this will ensure that you are comfortable with the terms and conditions outlined in the agreement.
Here are some critical clauses to watch out for when you are reviewing your property management contract:
1. Scope of services: This clause outlines the specific services that the property management company will provide for you. These services may include advertising vacancies, rent collection, property maintenance, and tenant screening.
2. Fees: The contract should clearly outline the fees that you will be required to pay to the property management company, including management fees, leasing fees, and other charges that may be incurred in the course of managing your property.
3. Termination clause: This clause outlines the terms and conditions that describe how the contract can be terminated. It is critical to understand this clause to know how you can terminate the agreement with the property management company if their services are not satisfactory.
4. Tenant eviction policy: This clause outlines the procedure that the property management company will follow to evict a tenant who has breached the lease agreement. It is essential to understand this clause to know the actions that will be taken to deal with problematic tenants.
5. Communication: The contract should outline how the property management company will communicate with you, including how often they will provide you with updates on the status of your property.
In conclusion, having a well-written property management contract in place is crucial in ensuring that you have a clear understanding of the terms and conditions of your agreement with your chosen property management company. Always take time to read and review the contract thoroughly before signing it to avoid any misunderstandings in the future.