Owner Agreement for Property Management

As a property owner, the thought of entrusting your property to a property management company can be daunting. However, having an owner agreement in place can help ease your worries and ensure a smooth working relationship between you and the property management company.

An owner agreement is a legally binding contract that outlines the terms and conditions of the partnership between the property owner and the property management company. It is essential to have an owner agreement to avoid any misunderstandings and protect the interests of both parties.

Here are some essential clauses that should be included in an owner agreement:

1. Services provided: The owner agreement should outline the specific services that the property management company will provide, such as rent collection, tenant screening, maintenance, and repair services.

2. Fees: The agreement should specify the fees and commissions that the property management company will charge for their services. This should include a breakdown of all costs, including any additional charges for services not included in the initial agreement.

3. Duration and termination: The owner agreement should specify the duration of the agreement and the conditions for termination. This can include situations where either party can terminate the agreement, such as non-payment of fees or breaches of the agreement.

4. Property owner obligations: The agreement should outline the responsibilities of the property owner, such as providing necessary information about the property, ensuring the property is up to code, and maintaining insurance coverage.

5. Confidentiality: The owner agreement should include a confidentiality clause to protect any sensitive information shared between the property owner and the management company.

6. Liability: The agreement should specify the liability of both parties in case of a dispute or legal action. This can include indemnification clauses that protect each party from any damages or losses incurred.

In conclusion, an owner agreement plays a crucial role in ensuring a successful partnership between property owners and management companies. It should be drafted by a legal professional and reviewed carefully by both parties to avoid any misunderstandings or disputes in the future. Having a solid owner agreement in place can provide peace of mind for property owners and help establish a positive working relationship with the property management company.