legal: Dissecting Property Management Contracts Pt. 3 - Indemnification and Boiler Plate Items
- 02/19/10 06:03 AM
Make sure to read my introduction to this series on management contracts In continuation from our last article, here are more items to pay attention to in the property management contracts you review: Liability and Indemnification All contracts will have a section that addresses what the management company can and cannot be held liable for. Some contracts are broader and more comprehensive than others in terms of what the firm requires the owner to indemnify them from. Indemnify: To compensate for loss or damage; to provide security for financial reimbursement to an individual in case of a specified loss incurred by … (3 comments)
legal: Dissecting Property Management Contracts Pt. 2 - Terminating the Contract
- 02/18/10 04:02 AM
Make sure to read my introduction to this series on management contracts In continuation from our last article, here are more items to pay attention to in the property management contracts you review: Term (AKA "Duration of agreement", "Retainer period") Most management companies require a 1-2 year contract period with very few offering month to month services. Bear in mind that the contract will be legally binding upon its execution (signing), even though the start date or "effective period" may begin later. After the initial or "primary" term is over, the contract may automatically renew itself for another term repeating the … (10 comments)
legal: Dissecting Property Management Contracts Pt. 1 - Responsibilities and Representations
- 02/17/10 06:36 AM
Make sure to read my introduction to this series on management contracts While contracts can range in size from 3-10 pages, 5-6 is average. Some are comprehensive, while others are very basic. While we can't tell you what exactly what the agreements you see will look like, there is a good bet they will contain some of the items outlined below. Remember that each management company must be viewed in its entirety when compared against another. While some issues are more important than others, making a true comparison between the companies you interview requires taking into account the full scope of their … (3 comments)
legal: What to Look for In a Property Management Contract
- 02/17/10 06:36 AM
Note: This is designed to be a helpful overview of property management contracts, but keep in mind that I am not a lawyer and this does not constitute legal advice. The contract you sign with a property management company should not be viewed as a mere formality, but rather the sole determiner of what services you or will not receive, what costs you will incur and what rights you will have in the relationship. Choosing to not thoroughly read the contract is no different that choosing to not interview a property manager before you hire them. The contract is designed to … (4 comments)
Make sure to read my introduction to this series on management contracts
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