As a property management company, it’s important to have a solid agreement in place with your clients. These agreements set forth the terms of your working relationship and can help prevent misunderstandings and disagreements down the line. In this article, we’ll discuss the key components of a property management company agreement and why they’re important.

Scope of Services

The first thing to include in your agreement is a clear description of the services you’ll be providing. This should cover everything from rent collection and maintenance to tenant screening and eviction processes. Be as specific as possible to avoid any confusion or misunderstandings.

Compensation

Next, you’ll want to outline how you’ll be compensated for your services. Will you charge a flat fee or a percentage of the monthly rent? How will fees be collected and when? Be sure to include any additional fees, such as those for leasing or marketing services.

Term of Agreement

The length of your agreement should also be clearly defined. Will you be working with the client on a month-to-month basis or for a set period of time? If it’s the latter, be sure to include any renewal terms or options.

Termination Clause

It’s important to have a termination clause in your agreement that outlines the circumstances under which the contract can be ended. This could include things like non-payment, breach of contract, or a mutual decision to end the relationship. Be clear about any notice requirements and how any outstanding fees will be handled.

Confidentiality and Non-Disclosure

Your agreement should also include clauses that protect both you and your client’s confidential information. This could include things like tenant information, financial statements, and business practices. The non-disclosure agreement should be comprehensive and specific.

Indemnification and Liability

Indemnification clauses protect you from liability should something go wrong while you’re managing the client’s property. This could include things like tenant injuries and property damage. Be sure to specify the scope of your liability and how it will be handled if something does go wrong.

Conclusion

A property management company agreement is an essential tool for any property management company. By including all of the above components, you can ensure that you and your client are on the same page and that you’ve taken steps to protect your business. If you need help drafting an agreement, consult with a lawyer or a reputable online legal service.