If you are a home owner who has decided to have a property management company manage your rental property for you, there are some items that you will want to be aware of regarding terms of the agreement. The property management agreement is just like a lease in that you are agreeing to the terms that included in the agreement.
Below are four standard items that may be included in the property management agreement
- Management Fees: Most property management companies will charge either a flat fee such as around $79-$99 per month, or a percentage based fee such as 8% of the rent amount
- Cancellations: If you decided you no longer want to have a property management company manage your rental property, there will likely be a 90-120 day cancellation period.
- Late Fees: Late fees for tenants who do not pay their rent on time will go to the property management company and not the homeowner.
- Security Deposit: If you hired a property management company they will hold your tenants security deposit until the time it needs to be refunded
Deciding to have a property manage your rental property is a great idea for those who do not have experience in renting out their homes. There are a lot of regulations that are involved with renting, and using a property management company will make sure you are following these regulations.