With the help of our real estate expert Wayde Hildrew, we give you the basics of what is included in a property management contract and why you need it. You will also learn what to pay attention to in different parts of your contract. This way, you can sign an agreement with confidence, because you know all the intricacies of your relationship with your property manager. You want to try to avoid signing a long contract until you have proven results from the management company and you have confidence in it. Unfortunately, most management companies will not sign a contract for less than a year. In this case, you should carefully consider the termination clause and ensure that you can terminate the contract if you are not satisfied with the service. If you`ve advertised a price that seems too good to be true, then maybe you just get a spectacular offer – or, you don`t know, some extra property management fees that probably appear on the line. To 😀 We do not have a minimum term or prohibition contract, but most property managers will block you for a year or more. It is all the more important to know the details of the termination clause as it is a long-term obligation. We also recommend a termination clause that will allow you to terminate the contract without penalty if the real estate administrator will not secure a tenant within a specified time frame. The second part of the contract that you need to understand is your responsibility as an owner.

This part of the contract defines what you have to do by signing the contract and what you prevented from doing. “Most agreements are between 15 and 25 pages, so it can be difficult to read in detail, especially since things are written according to the legislation that makes it difficult to understand! You have to take a long time to read it. Also keep in mind the services that the administrator does not provide under any circumstances. This varies from company to company, but frequent exceptions include refinancing a property or major transformations. Make sure the manager doesn`t rule out anything you think is an absolute necessity, such as looking for tenants, collecting rent or managing emergencies. “The first 6 pages of most property management contracts are those processed by the agency. They are the most important that need to be read because they include the fee structure, what the property manager will do at the service level, and so on. That`s where I`d spend most of my time reading. Property managers will generally market your investment property on their website, with rental brands and newsletters to potential tenants. If your experience has been boring or you have been abused, it can be difficult to contain emotions.