There are roughly 206,328 property management firms in the country, but not all property management companies are created equal, especially when it comes to spelling out what tasks and responsibilities the certified property manager and the company is responsible for.
The U.S. property management industry generates nearly $69 billion in annual revenue and is said to have grown 3.1% every year from 2009 to 2014. But if these companies do not have properly and clearly outlined property management agreement forms, then they may end up robbing you, the landlord, blind.
What is a property management contract? This piece of paper (and it SHOULD be in written form!) outlines everything your management team will and will not do for you and your property. All property management companies should have this form, and you should take care to read it very thoroughly.
The management and rental industry generally follow the same guidelines state to state, and therefore there are a few basic pieces of information you will read on a property management agreement form, no matter where you live.
What they should include:
First, the document should clearly define the dates for how long the property management should look after your place. You will most likely find that the majority of companies have one-year basis deals.
Due diligence is one of the most important sections of the agreement. Here, the company promises to do the very best when it comes to managing your property. For example, they should be able to make low cost, yet effective, repairs and upgrades in order to reduce your energy bills. This also promises that your property manager is competent in making repairs. They are obligated to tell you what repairs they are making and at what costs.
Accounting is also one thing to expect to see on the agreement. Here, the company is simply agreeing to obey the law and send the right amount of money to you on a regular, periodic basis. The date you will receive your money every month should be clearly written. If not, ask the manager to include it in the agreement.
Repairs will also be spelled out in the property management agreement form, to some extent. Basically, the agreement will state that the company must handle any repairs needed. Do not the “hold-harmless” section, which states that the company is not responsible for the damages incurred to the house by the tenants living there, nor are they responsible for the acts of the people the company may hire to fix the place.
If anything seems to be missing from the contract after you’ve looked it over, always ask the property management company to include or clarify something for you. Read this for more: rpmlv.com