Homeowner & Prop. Mgmt. Contract Terms

[Bailey A.]

Hi guys,

I’ve just about finished my property and have been looking around for management companies to take over and needed some qualified advice. Is it typical for the contract between a homeowner and the company to be one-year with the added clause that if I terminate the contract early because it doesn’t work out that I owe them their dues they would’ve received for the remaining time of the lease?

I remember hearing on a podcast to be weary of yearly contracts but wanted to get your advice. In particular, I’m looking for advice from property managers themselves. Thanks a bunch!

P.S. if there are things specifically to AVOID in a contract please let me know. I’m brand new to this and wanted to make the best decision possible.

[Bjorn Ahlblad]

@Bailey A. what @Christine Kankowski said most PM's will have a contact they will want you to use. Usually no thorny issues; one year term and 30 days cancellation with or w/o cause. Watch out for contract terms that try to rope you in to them if you sell the property even after they have been gone for several months. Do your best to understand all charges and fees. Go with a PM who is a current member of NARPM.