Tacoma and Pierce County have the biggest rent increase in the nation. The rising rents make it an enticing an ideal place to purchase a rental property in.
Once you buy your real estate, you need to find renters and manage your properties. That's when having a professional property manager is a smart business move. But you don't want to work with just anyone and blindly sign any agreement.
This guide will help you know what to look for in your property management agreement.
Many property managers will include a trial period within their agreement. This gives either party 30-90 days to terminate the agreement. There should be no penalty for terminating during this period.
This gives you a chance to test out the service before getting locked into a long term contract. It also encourages the property manager to dedicate time and effort to your property.
What Are the Services Included?
Property managers will work with residential landlords to create a custom service package based on the owner's needs. This could include lawn care for a house or screening potential tenants for apartments.
Determine what services you need and confirm that they're included in your agreement.
The responsibilities listed for you should be clearly outlined and easily understood. These are often listed in itemized lists to avoid confusion.
Check if the property manager has the authority to spend money on your behalf without approval. This is typically up to a certain dollar amount to cover smaller repairs and maintenance.
What Are the Fees?
Expect to pay a percentage of the rental value plus additional expenses. Try companies that have a simple, fair, and transparent fee structure with customizations. Here at Next Brick, property owners agree to simple, transparent pricing with carefully crafted protection plans to select safeguarding your investments. No hidden fees. Period.
A responsible property manager will provide you with regular reporting and accounting documentation. The contract should outline how and when these reports get delivered to you. It could be through a phone call, by mail, an email, or uploaded to an online portal.
You should also agree with how often you'll receive reporting. These could be every month, every quarter, every six months, or even once a year.
How to Terminate
Look for the terms that outline how the contract gets terminated. Some agreements outline fees that come due upon termination. The property manager should also agree to turn over all necessary documentation to you or your new property manager within a reasonable time period.
Review Your Property Management Agreement
As you can see, there are several components you need to review in your property management agreement. By taking the time to read it carefully before signing, you'll better understand what you can expect from your property management service.
When you agree to work with an experienced and knowledgeable property manager, they can assist you in managing your rental homes.
Contact our experienced team today, and we'll be happy to answer all of your property management questions.