All Forum Posts by: Renee R.

Thank you for your responses and advice.  They were incredibly helpful in guiding our decision forward.

Hi BP Community,

We’re in the process of hiring a property manager (PM) for our rental property in San Diego, California. In reviewing the contract—specifically a boilerplate C.A.R. Property Management Agreement—our attorney has raised concerns about Sections 4C and 10, particularly regarding liability.

Our primary concern is how responsibility is allocated between the owner (us) and the PM. As written, it seems that if the PM makes decisions that expose the owner to liability, the owner is still fully responsible. While we understand that owners need to indemnify the PM to some extent, there seems to be no middle ground where both parties are accountable for their own actions.

The PM has assured us that this broad indemnification is standard in the industry, but as first-time clients hiring a PM, we have no way to verify that easily. Complicating matters, our attorney is advising against signing the contract as written.

Here are the two clauses we’re particularly concerned about:

Section 4C (Indemnification Clause):
This section requires the owner to indemnify the PM for nearly all claims, even those arising from the PM’s own negligence (though it excludes willful misconduct or gross negligence). This broad indemnification seems to shift nearly all liability onto the owner, even in situations where the PM’s actions caused the issue.

Section 10 (Liability Disclaimer):
This states that the PM is not responsible for any damage to the property or personal belongings, even when caused by third parties such as inspectors, brokers, or prospective tenants. The contract essentially directs the owner to “obtain insurance” to protect against these risks.

Questions for Experienced Owners, PMs, and Legal Professionals:

1.  Is this level of indemnification truly standard for property management agreements in California?
2.  Have other owners successfully negotiated more balanced liability terms, and if so, how?
3.  Are there alternative contract structures that provide fair protection for both parties?
4.  What red flags should we watch for in a property management contract?
5.  Should owner (us) be placed on PM's insurance and vice-versa?
   

Thanks in advance for any advice or guidance!

Hi Sally, thank you for the referrals, I really appreciate it. Just sent you a dm as well.

Hello, does anyone have a recommendation of a good eviction lawyer in San Diego/Chula Vista?  Thanks in advance!

Hello, I'm new to the BP discussion forum. We own over 100 units in San Diego and have always self-managed.  Our handyman team of 2 are moving out of state after working with us for almost 18 years to start/continue their real estate investment journey in a more affordable state.  We are deciding between hiring a property management company, finding a full time handyman or a hybrid of hiring a property management company for our bigger buildings and using a handyman contracting company for the easier ones. I would appreciate advice on the following:

1.  Property managers vs self managing in San Diego?  What do you recommend?

2.  Recommendations on good property management companies.  

3.  Where to find/hire a full time, skilled and licensed handyman

4.  Recommendations for handyman contractors or handyman companies in San Diego

Thanks in advance for any advice or help.