A draft property management agreement highlights the responsibilities of both parties. Remember that not all management companies offer the same services. Some of these companies, for example, take responsibility for the marketing of rental properties, while others leave the responsibility to the owners. Another important feature of a property management agreement is the inclusion of a termination clause. It must indicate when and why the property manager or management company has the authority to terminate the contract or whether, as the owner, you have the same power to terminate it. Here are some details that must be included in such a clause: The main tasks of the Property Manager are the care of tenants, relationships with tenants and service providers, maintenance and repairs within the framework defined by the owner or his Asset Mangers. We offer the acquisition process to property management that meets the specific needs of the client and generates synergies and savings. There is also the aspect of measuring the performance of each property in a portfolio and the entire portfolio from the beginning with the business plan. This is reflected in our performance-based report. If you run a real estate management company, it is advisable to create a typical contract for your business relationships. This contract can then be customized or, to a large extent, intact for certain features.
This agreement is essential to protect you from liability. It also offers a structure for an advantageous partnership between the owner and the property management company. Performance MAnagement is the key to our service philosophy: financial institutions having to carry out a risk assessment before any loan, the investor, if he can prove that he owns his own risk management, will have a positive influence on the interest rate. We create and agree with the owner of a risk matrix and actively manage it in the operating phase. Any agreement should be designed to best match both parties and the property itself. For example, an agreement for a commercial property that houses several companies will require specific consideration for companies located in the building. A residential property may have other considerations. Any property management agreement should also correspond to the two companies involved at the same time as the property.
For example, a real estate management contract for a commercial property that houses several companies requires specific thinking for companies active in the building industry. This service level agreement contains (in Appendix 1) a list of real estate for which the management company is responsible. This list can evolve over time, as the agreement must be flexible and form the basis of a long-term relationship between the parties. Each property must be rented on a secure short-term rent and managed by the management company during the lease and during periods of vacuum. This Property Management Service Level Agreement can be used by property management company, which manages a portfolio of residential real estate on behalf of the owner. Other models are available for the management of a single property, multi-building and commercial properties. A well-developed agreement contains a clause on the type of insurance coverage a homeowner must assume for the building. Real estate companies should take out their own insurance to protect their business – this can also be stipulated in the contract. We have developed a service level agreement (SLA) system with key performance indicators (KPI) for property management and other real estate-related services, such as facility management. The integration of evaluations and performance evaluations is an essential part of the system. We always incorporate a performance-based element into every administration or service fee.