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Updated almost 3 years ago on . Most recent reply

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Jordan Becker
  • Investor
  • Sunnyvale, CA
21
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25
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Property Management Contract -- Indemnification provision

Jordan Becker
  • Investor
  • Sunnyvale, CA
Posted

I have a few doors in small multifamily properties and am looking to hire a property management (PM) company.  Most PMs I have contacted have an indemnification clause in their contract, which says the Owner (me) would have to indemnify (reimburse) the PM for any and all losses PM incurs relating to any injuries that occur on the property.  That makes sense to me EXCEPT if the injury was the fault of the PM -- why should I have to indemnify (reimburse) the PM if their negligence caused the injury?  But none of their contracts have any exception for cases where the injury/loss is the PM's fault.  Of course the PM will be named as an additional insured on my property insurance policy, but that contract clause still seems inequitable.  Should I insist on modifying that language to *exclude* cases where the loss/injury is the PM's fault (which the PM may or may not agree to), or am I making an issue out of nothing?  (Needless to say, I am more interested in the opinions of other property owners here, than of PMs :-) ).  Thanks for any help!

Most Popular Reply

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28,123
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41,153
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,153
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28,123
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied
Quote from @Drew Sygit:

Didn't you post this same question somewhere else on BP in the last few days?

@Drew Sygit I commented on a very similar post a few days ago but it was from someone else.

@Jordan Becker the hard part is finding a Property Manager willing to change their contract for you. Most won't. I would spend your time searching for one that's smart enough to have a fair contract to start with.

  • Nathan Gesner
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