What is important – and what a property management agreement CAN’T tell you
1. How Easy Is It to Cancel the Agreement?
This may sound like a strange thing to review in the agreement, but we believe it is one of the most important parts of the agreement because it shows the property management companies willingness to give you flexibility in allowing you to leave if you are ever unhappy with their service. A property management company should not handcuff you or force you to work with them, nor should they charge you termination fees or penalties if you leave. Ideally, you want a month-to-month agreement, allowing you to potentially leave anytime you want – and without penalty!
-Our management agreement is month-to-month with NO termination fees or penalties
2. Are the Fees Hidden in the Agreement?
You can expect the company to charge fees for the services they provide, but are those fees transparent and fair?
If the fees are ‘hidden’ throughout the agreement that could be an indication that the company is not being transparent in what they will charge you.
View our fee structure at the link below:
https://sresvc.com/pricing
3. How Much Money Do I Have to Place in Reserve?
Your Birmingham property management company should have a banking trust account for you and you will need to fund this account with what is commonly referred to as a reserve. This money is used to fund your account and may also be used to pay expenses on the property that are incurred before or after you receive the rental income each month.
Reserve amounts vary, but you should expect this amount to be anywhere from a few hundred dollars, up to one full month’s rent.
We require an escrow reserve of $500
Who Handles Evictions?
Although evictions should be rare, if a legal problem must be addressed, will the property management company do it for you or will they hand the problem back to you?
You want to be sure that the company will handle ALL legal problems on your behalf.
Beware of any management agreement language that requires YOU to involve YOUR legal counsel in cases of tenant eviction.
Although rare, if an eviction is necessary, we oversee the entire legal process from start to finish
What the Property Management Agreement Can’t Tell You-
Property Management Agreements can’t tell you what you need to know most.
They can’t describe the most important parts of your new relationship– things like integrity, honesty, professionalism, communication, compassion, wisdom, and the list goes on.
These are the most important things to consider before entering into a relationship with a property management company.
You are NOT entering into a transaction, as much as you are entering into a relationship.
I hope this information will help you make an informed decision for your property management needs. Please consider me a resource if I can help you in any way!
Teria McCrear, Owner / tmccrear@sresvc.com / 205.564.2308