Property Management refers to the operation, control, and oversight of real estate, and also includes the management of personal property, equipment, tooling and physical capital assets. A contract with such a provider should include all the details regarding the agreement between the two parties. Here are 6 things you must double check in the contract before signing:
1. Services Promised
Before you sign the contract, the first thing you must check is whether the services mentioned in the contract are the same as the ones promised by the service provider. Often, they make tall claims during the negotiation process, and don’t follow through with those claims. If you find any service missing in the contract, immediately contact your provider.
2. Service Charge Information
Sensing that you are new at managing your property, the service provider might try, and charge you extra money for the services. You can prevent this, by conducting an extensive market research about the prices of various services that are being offered in the property market. If you find any discrepancies in the price quoted in the contract, point that out, before signing the contract.
3. Obligation Of The Property Owner
This is an important sub-section of such a contract as it talks about the responsibilities and liabilities of the property owner. Make sure that the service provider doesn’t add binding clauses to the contract, such as preventing the owner from placing a tenant, or asking the owner to procure consent from the property manager before entering their own property.
4. Duration Of The Contract
The time span of the agreement between the two parties is also an important point that you must check in the contract. You must ensure that the duration of the agreement emulates what you discussed with the service provider.
5. Property Manager’s Liability
This part of the contract is something you cannot miss at any cost. The property manager’s liability defines the instances when the manager will not be held responsible for errors or misconduct. You should discuss this with the property manager, and make sure that the liabilities are reasonable.
6. Termination Clause
Termination clause is the condition under which the contract will come to an end. This is something you should really take notice of and understand. Sometimes the property manager might add contrary clauses in this section, so you should be alert.
To safeguard your interest, you should carefully go through all the clauses, and make sure that your service provider is not taking you for a ride.