Property Management Terms

[Jash Sayani]

Hi,

I am looking for a property manager in Jacksonville. I spoke to a few over the phone and requested for their agreements. I was just curious about some of the terms in the agreement:

1. Agreement is for 5 years and renews automatically for 5 year periods
2. If agreement is cancelled, a $2000 fee applies
3. Account setup fee of $150
4. Fee of $500 if agreement cancelled in 90 days for inability to find tenant
5. Up to $50 service fee for repairs done on property
6. Re-key charge for initial rekeying
7. Owner needs to provide with quarterly lawn maintenance and pest control
8. Owner agrees that Property Management does not include providing on-site management services (not 100% sure on its meaning)
9. A 6% commission if property sold to tenant (up to 9 months after lease is over)

Are these common terms? 

The fee is 10% of rent, 50% of placement, which is pretty standard.

[Dawn Brenengen]

That sounds high to me.  I'm not in the same market, but I don't charge nearly that much. 

1. I usually see agreements go for one year at a time

2. $2000 is steep, especially if you are committing to five years!

3. ok

4. Seems like they are asking you to pay, even if they don't perform.  Sounds like bad customer service to me.

5. I don't charge this, but I know others do, so ok

6. ok

7. Seems like that should be up to you, but I would let this one go

8. ok

9. That's nuts.  6% is a full service listing.  That's marketing the home, showing the home, and being both the buyer and seller's agent.  I could see them having a commission built in if the tenant buys, but 6% is totally unreasonable.