A property management contract is a written agreement between the owner of a property and the person who will manage it. The property management contract will state everything related to the professional cooperation between the two parties in order to make sure that everything runs well. Thus, this contract is beneficial for both the owner of the property and the person who works as the property manager.
The benefits of the contract for the property owner
• Making sure that the property will be given the most satisfying care so that it can stay in a good condition.
• Stating the duties that the property manager must do so that he will understand the level of expectation that the owner puts on him. This should be written out in detail to make sure that everything is clear.
• Giving a reference if there is problem during the period of the agreement so that any termination of the contract will be possible to create. It is because of the fact that there is still a chance for the manager to make mistakes or to cause disappointment in doing his duties as stated in the contract. Termination is crucial because it can save the owner of the property to suffer from bigger loss.
The benefits of the contract for the property manager
• Giving obvious understanding about the detail duties to be carried out during the period of the agreement, as well as knowing the expectation and trust that the owner of the property gives to him.
• Specifying the manager’s responsibility regarding to the property so that he can give his best service and will be able to prevent making decision that violate the responsibility given to him by the contract.
• Understanding the timeline of the contract in order to see when he should start work and when he should finish.
• Analysing whether the commission that the property owner will give is fair. It means that the amount of money to be given should be valuable and should match the length of working and the kinds of job that should be carried out by the manager.
• Knowing how the payment of the commission will be done and when.
Things to be written out in the contract
• The names and the address of both the property owner and the manager
• The detail explanation about the manager’s duties and responsibilities.
• The amount of commission to be paid and how it will be paid
• The terms and conditions related to the professional cooperation between the two parties.
• The condition that may lead to termination of the agreement.
• The signature of the two parties
You can download a sample of property management contract to have a better understanding about its clauses.
Property Management Agreement Template (82.0 KiB, 455 hits)