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Updated 12 days ago,
Are there red flags in PM agreement?
hey guys, I've been talking to a potential PM for my townhouse and he sent me his PM agreement for review.
There are a few things in the agreement I didn't like, but I'm not sure if these are common practice or true RED flags.
Would love to hear your thoughts... What do you think about these?
1. [agreement] shall be for an indefinite term, subject to termination by the Owner. If the Owner wishes to
terminate the agreement during an existing tenancy the owner will be held liable for payment of
management fees for the duration of the existing lease as well as a $300 + GST cancelation
fee. If the tenant was placed by the Manager, and wishes to extend or renew their lease, and
the owner wishes to cancel this agreement to continue on with the existing tenant, there will be
a fee of $800 + GST. The Manager reserves the right to terminate this contract with thirty (30)
days written notice.
2. To collect all rents and other income from the Property and promptly and directly deposit such
rents in XXXX's Pooled Trust Account.
3. Should the Owner require the Manager to make unscheduled visits to the property
(insurance proposes) above and beyond the duties outlined in this Agreement, a fee of $75 +
GST will be charged per visit.
Thoughts?? Thanks in advance.