A property management contract is a contract between a real estate owner and the company or person who has been responsible for the management of the property. This contract covers all the tasks that a management company assumes for the owner. What is included in the “gross revenue” affects the amount of administrative costs for the duration of the agreement, so make sure all parties understand exactly what should be included. Note in particular that this will be a negotiated term that should be discussed with your lawyer. A property management contract exists between a lessor and a property manager, which is required in most countries as a licensed real estate agent. As a real estate agent, the real estate manager receives a percentage of the total rent paid by the tenants. The main task of a property manager is to preserve the property while ensuring that free land is leased. If the agreement requires the administrator to be liable for money on the basis of annual revenues, the owner is required to make that payment at the time of termination of the contract. As a property owner, you can delegate responsibility for the management of the property to either a property manager or a business. Be sure to read the property management contract and renegotiate all the elements of the contract you are not familiar with.
If you have an agreement, you can sign the contract. 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. To protect yourself, you should ensure that there is a “due diligence” clause in the agreement. For example, the manager is not responsible if the recruitment of a third party has been the subject of “due diligence”, even if he has to do his research and he should not hire a contractor with a history of complaints against him. This agreement is essential to protect you from liability. It also offers a structure for an advantageous partnership between the owner and the property management company. The administrator has the exclusive right to manage and lease real estate for the duration of this agreement.