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Updated over 1 year ago,
Is this typical in property management contracts for retail investors?
Is this typical in property management contracts for retail investors?
General Contract Language
- Broad language allowing PM to receive and collect fees from tenants so long as it doesn't explicitly conflict with said agreement (meaning any additional fees can be added even if not in contract)?
- Broad language excusing PM from any responsibility (including that of anyone they subcontract out to)
- Charging the owner additional "convenience fees" if they "fail" to perform according to an agreement (with broad language about what that means)
- Making the owner pay for any mediation / attorney fees for both parties (with no cap specified)
Specific fee structure:
- Management Fee: 10% scheduled rents (up to 3 units); 8% up to 15; 6% up to 35
- New tenants placement (not renewals): 50% first month rent
- 10% mark-up on all service fees (no receipts required)
- 15% mark-up on total cost for any capital expenditures
- Flat turnover fee
- Flat evictions fee