So you’re thinking of partnering with a property management company. You’ve probably been on Google and have done some searching, maybe you’ve called a few to chat, but before you decide on who to hire you should do one thing – dive into the property management contract!
The document that establishes a relationship between you and your property manager should never be seen as an afterthought. After all, embedded in this document are the rules of engagement for both parties, the services you will receive, what fees are applied and when (if any!), and what rights you, as the owner, have.
Electing to skim over this contract is pretty much the same as choosing not to even talk to a property manager before you hire them. Don’t let a great initial impression and professionalism take you away from the fact that this document is vastly important and you need to know what is inside of it. Again, not all property managers are made the same!
As with any contract, the fine print is never fun to read. Thinking long term, however, if you do this right the first time and hire the best property manager for you, you may never have to go through this process again for several years or ever. Here you’ll find the fees associated with service you’ll receive, how the company will handle tenant issues and complaints, what you are responsible for in the relationship, the process of terminating contracts with that company, and so much more.
Everything in this document adds up! One key provision to look for in your management agreement is the threshold they spend on repairs without notifying you. Set the threshold too low and you’ll be hit with a phone call every time something breaks, too high and you’re management company may decide it’s best to fix everything in your property… Over the years we’ve been able to learn more and more every year about repair costs and what it takes to get things done. We’ve set a threshold limit that allows you to avoid that pesky phone call every time something goes wrong while at the same time providing you with the peace of mind that we aren’t lining our pockets with your “maintenance money”.
As a best practice, ask each property management company you speak with to provide you with their contract. Once you’ve talked to a few you’ll have a couple in front of you and comparison will be easy.
Say you gathered up all property management agreements from property managers in Austin. As you looked at those you’d start to notice some companies are better than others. You may also notice that Stone Oak’s contracts only go month-to-month. Consider this; we are property management company built by landlords, for landlords. We know the type of service you expect as an investor because we’ve been in your exact shoes.
Remember, not everything on these agreements are set in stone as most great managers offer flexible services. If you see a policy or provision you have questions or concerns about, bring them up! If you’re an rental owner in Austin, Texas weighing the options, contact the property manager that tenants love!
