Agreement between Property Manager and Owner

If you`re a property manager, you know that one of the most important parts of your job is ensuring that you have a solid agreement in place with the owner of the property you`re managing. This agreement sets out the terms and conditions of the working relationship between the two of you, and it`s crucial to get it right from the start.

Here are some key elements of a strong property manager/owner agreement, and why they matter for your business:

1. Clearly defined roles and responsibilities: Your agreement should spell out what you, as the property manager, will be responsible for, and what the property owner will be responsible for. This could include things like maintenance and repairs, marketing and vacancy management, lease preparation and enforcement, and financial reporting. By clearly defining these roles, you can avoid misunderstandings and ensure that everyone knows what they`re responsible for.

2. Clear expectations around communication: Communication is key in any business relationship, and that`s especially true in the property management world. Your agreement should spell out how often you`ll communicate with the property owner, what form that communication will take (e.g. email, phone, in person), and what types of information you`ll be sharing (e.g. financial reports, updates on maintenance issues). By setting clear expectations around communication, you can avoid surprises and foster a more collaborative relationship with the property owner.

3. Transparency around fees and commissions: As a property manager, you`re likely to charge fees and/or commissions for your services. Your agreement should lay out exactly what those fees are, when they`ll be paid, and what services they cover. It`s important to be transparent with the property owner about your fees, so they understand the value you`re providing and can make informed decisions about working with you.

4. Specifics around termination and renewal: No business relationship lasts forever, and it`s important to have a plan in place for how you`ll end the agreement if necessary. Your agreement should spell out the circumstances under which either party can terminate the agreement, and what the process for doing so looks like. Additionally, it`s a good idea to include information about how the agreement can be renewed if both parties are interested in continuing to work together.

5. A focus on legal compliance: Finally, your agreement should make it clear that both you and the property owner are committed to complying with all relevant laws and regulations. This could include things like fair housing laws, safety regulations, and local ordinances. By emphasizing legal compliance, you can ensure that you`re both operating within the bounds of the law and avoid any legal issues down the road.

In conclusion, a well-crafted property manager/owner agreement is a key component of a successful property management business. By setting clear expectations, fostering communication, and emphasizing legal compliance, you can build strong working relationships with property owners and ensure that your business is on solid footing for years to come.