Things To Look For In A Contract With A Property Management Company (written for Real Property Management Manhattan)
Once you have found a property management company that you like, you will be asked to sign a contract with them. As with any contract, it is always smart to really read the contract. Make sure to check out the fine print as well. Here are some things that you need to look for in the contract.
What Is Expected Of The Property Management Company
The contract will note line-by-line exactly what the property management is getting paid to do for you. You will need to make sure that all your needs are covered in the contract before signing it. Most contracts will assure that the property manager will advertise your property and show it to potential tenants, screen said potentials and make a contract between you and the tenant that will be fair to the both of you. The property management company will also be tasked with keeping the property maintained and making any repairs that need to be completed. Make sure that the contract states that the property management company will also be responsible for routine inspections on the property as deemed necessary by the state you are living in. Also make sure that the property management company is responsible for going to court and representing you in case of any arguments between yourself and the tenant.
Check Out The Fees They Are Charging You
This is a very important thing for you to keep an eye out for. While most property management companies are honest, there are some who will try to gouge you by inserting extra fees into the contracts. Some extra fees are reasonable, however, there are many that are just put into place in order for the property management company to extract more than the 30% they normally charge. If you see any extra charges in your documents, make sure you find out exactly what these fees are for. If you do not like what you are understanding, then do not sign the contract.
