Questions You Should Ask Your Property Manager
If you want to find the best management company then 360 property management best for you to manage your property but there are a number of questions that you should consider while selecting property management company. These are important questions which will help you determine the services offered, the costs and how your property will be maintained. Asking these questions will help ensure that you know about the manager you choose and determine if you are comfortable with them,
Services Provided And Fees Charged Questions
The first question you should ask is what fees you will be charged for the service. Most management companies will charge a service fee and you have to out how much this is. The fee will usually be between 4% and 10% of the monthly income of the property. Some companies may charge a flat fee. Once you know what the fee is you should ask whether this is based on rent collected or rent due. This is important because should your property be empty you would be liable for the fee to the manager if it is rent due. Ideally, you will want to find a manager that works on rent collected fees. You also need to ask what services are being included for the management fee. A low fee might mean that the company does not offer a lot of services. Some companies will collect the rent and nothing else, while others will offer assistance in finding tenants, handling any maintenance and assisting with tax requirements. If these additional services are offered at an additional fee you have to consider if the low management fee is really worthwhile. You should find out about all of the services that the company considered an extra and what the fees would be. If you are unaware of these extras you might be charged because they are part of a contract you sign. It is important that you always read through the contract provided regardless of the number of questions you have asked the company.
Money Handling And Holding Questions
When choosing a management company you need to find out where the properties funds will be held. You need to ask if the funds will immediately be put into a separate account for your property and who will have access to the account. You should also find out when and how the property management company will be paid. Most companies will take their fee from the funds before they are put into a separate account. You also need to find out how and when you will receive your funds. Will there be a specific day that they funds are sent to you or will you have to request the payment? If the payment is automatic you should find out if this will be done via direct debit or another method. The last question you should ask is how you will receive the income and expenses report. Any good management company will offer this report to keep you updated with the amount coming in for your property and what needed to be done to maintain it.
Facts About The Property Management Agreement
When you hire a property management company you need to carefully read through the agreement that they provide you so you fully understand what you are agreeing to. Any verbal agreement you have made with the company will not be legally binding unless they are outlined in the agreement. There are 6 parts of the agreement that you should focus on and they are:
• The service and fees
• The responsibilities of the property owner
• Equal opportunity housing
• Liabilities
• Contract duration
• Termination clause
The first part of the contract that you should focus on is the service and fees. This section will outline the services provided by the company and how much they are going to be charging you for them. It is important that you check which services are part of the management fee and which ones are extra.
The second part of the agreement you have to focus on is your responsibilities as the property owner. This section will outline what you are responsible for and what you are obligated to do once the contract has been signed. This section will also tell you what you are not allowed to do once the contract is signed.
It is important that you ensure there is a clause in the agreement where the management company supports equal opportunity housing. The agreement should also state that the company abides by the federal and state fair housing laws. The liability section will outline all of the limits to the property manager’s liability and is often called the hold harmless clause. This clause will protect the property manager from liability except in cases where they are negligent in their duties. Most agreements will state that the manager is not liable for any negligence of a third-party contractor. The contract duration is important because you do not want to be locked into a long contract if you have never used the management company before. Most management companies will have a year-long contract. If this is too long for you to feel comfortable then you should carefully consider the termination clause to ensure you can terminate the service if you are unhappy with the results. The last point of the agreement you should focus on is the termination clause which outlines how you can end the contract early. The clause will usually state the fee you have to pay for early termination. This section should not include reasons for termination as you want a contract that does not limit you to why you may want to terminate the contract.
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Services Provided And Fees Charged Questions
The first question you should ask is what fees you will be charged for the service. Most management companies will charge a service fee and you have to out how much this is. The fee will usually be between 4% and 10% of the monthly income of the property. Some companies may charge a flat fee. Once you know what the fee is you should ask whether this is based on rent collected or rent due. This is important because should your property be empty you would be liable for the fee to the manager if it is rent due. Ideally, you will want to find a manager that works on rent collected fees. You also need to ask what services are being included for the management fee. A low fee might mean that the company does not offer a lot of services. Some companies will collect the rent and nothing else, while others will offer assistance in finding tenants, handling any maintenance and assisting with tax requirements. If these additional services are offered at an additional fee you have to consider if the low management fee is really worthwhile. You should find out about all of the services that the company considered an extra and what the fees would be. If you are unaware of these extras you might be charged because they are part of a contract you sign. It is important that you always read through the contract provided regardless of the number of questions you have asked the company.
Money Handling And Holding Questions
When choosing a management company you need to find out where the properties funds will be held. You need to ask if the funds will immediately be put into a separate account for your property and who will have access to the account. You should also find out when and how the property management company will be paid. Most companies will take their fee from the funds before they are put into a separate account. You also need to find out how and when you will receive your funds. Will there be a specific day that they funds are sent to you or will you have to request the payment? If the payment is automatic you should find out if this will be done via direct debit or another method. The last question you should ask is how you will receive the income and expenses report. Any good management company will offer this report to keep you updated with the amount coming in for your property and what needed to be done to maintain it.
Facts About The Property Management Agreement
When you hire a property management company you need to carefully read through the agreement that they provide you so you fully understand what you are agreeing to. Any verbal agreement you have made with the company will not be legally binding unless they are outlined in the agreement. There are 6 parts of the agreement that you should focus on and they are:
• The service and fees
• The responsibilities of the property owner
• Equal opportunity housing
• Liabilities
• Contract duration
• Termination clause
The first part of the contract that you should focus on is the service and fees. This section will outline the services provided by the company and how much they are going to be charging you for them. It is important that you check which services are part of the management fee and which ones are extra.
The second part of the agreement you have to focus on is your responsibilities as the property owner. This section will outline what you are responsible for and what you are obligated to do once the contract has been signed. This section will also tell you what you are not allowed to do once the contract is signed.
It is important that you ensure there is a clause in the agreement where the management company supports equal opportunity housing. The agreement should also state that the company abides by the federal and state fair housing laws. The liability section will outline all of the limits to the property manager’s liability and is often called the hold harmless clause. This clause will protect the property manager from liability except in cases where they are negligent in their duties. Most agreements will state that the manager is not liable for any negligence of a third-party contractor. The contract duration is important because you do not want to be locked into a long contract if you have never used the management company before. Most management companies will have a year-long contract. If this is too long for you to feel comfortable then you should carefully consider the termination clause to ensure you can terminate the service if you are unhappy with the results. The last point of the agreement you should focus on is the termination clause which outlines how you can end the contract early. The clause will usually state the fee you have to pay for early termination. This section should not include reasons for termination as you want a contract that does not limit you to why you may want to terminate the contract.
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