Every rental property management companies have a contract policy as business agreement. This contract is related to the business relationship that the company will have with their client for a certain period of time. The client list includes both the property owners who are willing to let their property to rent as well as the tenants who are looking for rental properties. No matter which ever group you belong to when you approach a rental property management company for their services, you should go through the contract carefully.
Why you should go through the contract in details?
Not reading a contract and signing it will be like choosing a property management company without knowing about the services they provide. Hence you may land up into more problems in near future. That’s why check the clauses carefully. These clauses will also help you to determine the standard of the services provided by the chosen company. Hence when you are hiring such company, ask them to provide a copy of the contract (if they have any).
Why this contract is prepared?
According to the rental property management companies, this contract informs the client about the business details like the services provided by the company and its service charge.
However, being the client, you first need to know the clauses that are attached with the contract. If you still feel confused after going through the contract, don’t hesitate to ask for the explanation from the hired company.
Factors included within the contract:–
The factors included in this contract are primarily divided into two parts. The first one is the company’s fee structure for the services they provide this service charge is further divided into three parts:-
· Management fee –4%of the monthly rental fees need to be paid to the company as management fees. This percentage however varies according to the type of property they are going to look after.
· Set up fee – This fee depends on the time and the number of days the management company spends to set the new account before a tenant comes to stay in.
· Lease fee – It’s like a compensation that the owner should provide to the company for finding new tenants for the property.
The second part is the type of services that the company provides. This also depends upon the type of property the management company is looking after. However, some of the common services are as follows:-
· Evaluation of the property and deciding its rental price
· Creating advertisement of the available rental property
· Choosing tenant and screening them before handing over the property
· Rent collection
· Eviction if required
· Providing maintenance and repairing services
· Looking after the legal proceedings related to the tenancy agreement
Apart from these clauses, the contract also includes other details like the way the company treats the tenant who comes to stay in these rental properties.
How can you terminate the contract?
Being the client if you are not satisfied with the service provided by the chosen company, you can terminate the contract. However, to terminate it there are usually certain rules to follow. First you need to know those rules. Unless you know these details, terminating a contract won’t be an easy job for you. Along with this also check the compensation amount that you may require to pay for the termination of the contract.
To avoid all these hazards, it is best to get in touch with reliable rental property management companies. Moreover, choosing the company as per your location can make the communication easier for you. For instance, if you are located in Palm Beach, get in touch with a rental property management Palm Beach to go for the property management contract.
Author Bio : Benith Jattod is a property manager and a freelance writer specializing on property management services. He has been writing for many online publications for the last few years. In his recent articles he shares some useful advices on rental property management. For better guidance he refers to take help from rental property management in Palm Beach. He often visits Kangarent Property Management ( http://www.kangarentpm.com/ ) to get ideas about such services.