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Updated about 4 years ago,

User Stats

56
Posts
38
Votes
Henry Murray
  • Investor
  • Redondo Beach, CA
38
Votes |
56
Posts

PM agreement - Performance Guarantees not written into contract?

Henry Murray
  • Investor
  • Redondo Beach, CA
Posted

I'm in the final stages of selecting a Property Manager and they have several "Performance Guarantee" that they sent me in a pamphlet (things like "We only get paid when a tenant pays", "If the tenant we place in the property gets evicted within the first 12 months, we will refund the leasing fee", and "If you are not happy with our service, you can cancel anytime with a 60-day notice").  Some of these I can find in the PM contract they sent me to sign (the we only get paid when the tenant pays), but the other two aren't explicitly written into the contract. 

There also is a section in the PM contract about the "Entire and Binding Agreement" that says that "Parties agree that this Contract expresses the entire agreement between the parties, that there is no other agreement, oral/otherwise, modifying the terms and this Contract is binding on Parties and principals, heirs, personal representatives, successors, and assigns. Illegal provisions are severable."  This section seems pretty typical from what I've seen but seems like it would exclude the additional Performance Guarantees they sent me since they're not referenced anywhere I can find in the PM contract?

How does this typically work? Are PM guarantees typically explicitly written into the management agreement (or the additional document referenced somewhere in the management agreement) or are they typically offered as a business policy that the business will offer on their goodwill but not written into the contract with homeowners? 

I've seen it both ways now and this company has really good reviews so maybe I'm just over thinking the details here but I want to get an idea of what is standard practice.  What has anyone else seen? 

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