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management agreement

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management agreement

A contract between the owner of income-producing property and another, who will manage the property. Management companies offer a wide variety of services and fee schedules,some charging a percentage of collected rents in return for a package of services and others charging a different fee for minimal services and then a menu of extras for varying charges.There is often a minimal monthly fee.(Always determine if there are additional charges for any of the services.)

Services can include some or all of the following:

• Collection of rents
• Leasing space to new tenants
• Collection activities including evictions
• Management of on-site personnel such as resident managers (who may be the employee of the property owner or the employee of the management company)
• Management of outside repair and maintenance service providers
• In-house repair and maintenance services
• Preparation and filing of all tax reports, such as rent taxes
• Payment of all or some bills
• Physical property inspections
• Periodic reporting of the property condition, revenues, and expenses
• Periodic recommendations regarding changes to the property or rental rates
• Brokerage services for the acquisition of additional properties or the sale of existing properties.



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