Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Managing Your Property
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 6 days ago on . Most recent reply

User Stats

2
Posts
0
Votes
Niranjan P Ghate
0
Votes |
2
Posts

Are all Property Management terms so unfavorable to owhers?

Niranjan P Ghate
Posted

I am new to REI and using property management companies, but having looked at terms offered by 3 property managers, I see some of the following unfavorable terms:

1. Manager can renew leases without Owner approval

2. Manager has broad discretion over rental amounts, discounts, and payment arrangements 

3. Continued management fees for remaining lease terms even after termination

4. 3% to 6% sales commission if the property is sold to a tenant within 3-12 months after termination of property management agreement

5. Manager keeps 100% of late fees and pet rent, etc 

6. One-sided Liability Provisions, Legal Protections

7. Cross-collateralization - proceeds from one property can be used against charges from another property being managed for you.

8. Manager has lien rights against the property. ?!!!

Is this common across various states or something seen more in Arkansas? 

What are people's thoughts about not using a property manager but working with the tenant to have them schedule repairs as needed, but paid for by the owner?

Any advice is much appreciated!

- Niranjan

  • Niranjan P Ghate
  • Loading replies...