If you are a property owner, you may eventually find yourself in need of a property management company to help you take care of your investments. When entering into a partnership with a property management company, it`s essential to have a clear and concise property management agreement in place. This agreement outlines the terms of the business relationship, including the responsibilities of each party. To ensure that you cover all the necessary bases, take a look at this quizlet on what items must be included in a property management agreement.
First and foremost, a property management agreement should include a thorough description of the property or properties being managed. This includes the address, number of units, and any unique features or amenities. You will also want to specify the type of property that is being managed, such as a residential or commercial property.
Another critical item that must be included is the management fee structure. This section should provide details on how much the management company will charge for their services, as well as any additional fees that may be incurred. Typically, the management fee is a percentage of the rental income, but this can vary depending on the company and the type of property being managed.
It`s also essential to outline the specific services that the property management company will provide. This may include everything from tenant screening and lease preparation to rent collection, maintenance, and repairs. You will want to be sure that the agreement clearly states what services are included and what is not included.
In addition to the services provided, the property management agreement should outline the responsibilities of both the management company and the property owner. This includes things like who will be responsible for paying utilities, handling evictions, and renewing leases, among other duties. It`s crucial to be as detailed as possible to avoid any confusion or misunderstandings down the line.
Lastly, the agreement should include a termination clause that outlines how the business relationship may be ended. This clause should specify how much notice is required and any penalties or fees that may be charged if the agreement is terminated early.
In conclusion, a property management agreement is a crucial document that outlines the terms of the partnership between the property owner and management company. By ensuring that all the necessary items are included, you can help ensure a smooth business relationship and protect your investments.