If you hire a property manager, you should check the management contract carefully. You must ensure that you understand the responsibilities of the administrator, the responsibilities of the owner and make sure that you are protected if the administrator does not meet his obligations. Administration fees are the most common type of fees charged by a property manager. Keep a close eye on how this tax is broken down. As a general rule, you must terminate between 30 and 90 days in advance to terminate the contract. Make sure that the agreement also stipulates that the property management company must give you at least 30 days at least 30 days in advance if it decides to terminate the contract. Advertising for the property. The administrator advertises with the rental property, hires and examines potential tenants, enters into a lease with acceptable tenants. The owner reimburses the trustee for all participation costs associated with this advertisement. The administrator must inform the owner in advance of the anticipated costs associated with this advertisement.
The first basic part of the management contract that you need to understand is what services the trustee is willing to provide and how much they will charge for those services. You need to understand which services are included in the administrative costs, which services can be provided for an additional fee, and which services are not provided under any circumstances. Make sure the administrative agreement has a clear termination or revocation clause. It should indicate why and when the director or management company has the right to terminate the contract and when you, the lessor, have the right to terminate the contract. 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. Two examples of the landowner`s obligations are: 6. Representations and guarantees. Both parties state that they have full authority to conclude this agreement. The performance and obligations of one of the contracting parties do not infringe or infringe the rights of third parties or violate other agreements between the parties, individually, and any other person, organization or company, or any other law or administrative regulation.