Property Management Management Agreement

Property Management Management Agreement: What You Need to Know

As a property owner, you may be considering hiring a property management company to take care of your investment. However, before you do, it’s important to understand the role of a property management management agreement.

A property management management agreement is a legal contract between a property owner and a property management company. It outlines the specific terms and conditions of the relationship between the two parties, including the management services to be provided, fees and costs, and the responsibilities of both parties.

Here are some key things to consider when reviewing a property management management agreement:

Services Provided: The agreement should clearly outline the services that the property management company will provide, such as tenant screening, rent collection, property maintenance and repairs, and accounting and financial reporting.

Fees and Costs: The agreement should clearly state the fees and costs associated with the management services. This may include a percentage of the monthly rental income, leasing fees, maintenance and repair fees, and any other charges.

Term of Agreement: The agreement should specify the length of the contract, whether it’s a one-time agreement or an ongoing partnership. It should also outline the terms for termination, renewal, and extension.

Responsibilities of Both Parties: The agreement should clearly define the roles and responsibilities of both the property owner and the property management company. This includes the owner’s responsibilities for maintaining and repairing the property, providing sufficient funds for management services, and adhering to any legal regulations. The management company’s responsibilities may include ensuring tenant compliance, maintaining the property, and managing finances.

Liability and Insurance: The agreement should address liability and insurance concerns. It’s important to ensure that the property management company has proper insurance coverage, such as liability insurance and errors and omissions insurance, to protect both parties.

Confidentiality and Dispute Resolution: The agreement should outline the terms for confidentiality and dispute resolution. This includes any non-disclosure agreements and the process for resolving any disputes that may arise.

It’s important to thoroughly review and understand a property management management agreement before signing. An experienced attorney can help you review the agreement and ensure that your interests are protected.

In conclusion, a property management management agreement sets the foundation for a successful partnership between a property owner and a property management company. By understanding the terms and conditions outlined in the agreement, you can ensure that your investment is managed effectively and efficiently.