Offering property management services can be an incredibly lucrative and scalable business model. That’s why we’ve developed a simple property management agreement (PDF and Word) for you to use as you grow your rent roll.
Offering property management services can be an incredibly lucrative and scalable business model. That’s why we’ve developed a simple property management agreement (PDF and Word) for you to use as you grow your rent roll.
What’s in this template?Property management is where registered real estate agents (realtors) manage rental properties on behalf of landlords in exchange for a fee. These services include but are not limited to:
A property management contract is a formal agreement between landlords and agents, which lays out the terms and conditions of how a rental property is to be managed.
DISCLAIMER: We are not lawyers or a law firm and we do not provide legal, business or tax advice. We recommend you consult a lawyer or other appropriate professional before using any templates or agreements from this website.
Now that you know some of the best practices when it comes to property management agreement let’s take the hard work off your plate with our free intern contract template.
Clients engage with property managers because organizing rentals is what you do day in and day out. They trust your expertise and experience to get them the best results with the least amount of headaches.
However, it’s a significant risk for landlords to handover the keys of their most expensive asset to your agency. That’s why it’s not uncommon for clients to seek multiple proposals from different real estate agencies before choosing the property manager they feel the most comfortable with.
A property management agreement is critical for you to secure business over your competition and get exclusive rights to managing your client’s property. Without a formal contract in place, you’re vulnerable to landlords changing their minds party way through your management.
Furthermore, a contract gives you added protection when it comes to receiving your rental fee on time and in full.
Property management contracts act as a pathway between a new lead and a long-term client. Below we’ve identified three best practices to get the most out of your agreement.
Generating new appraisals and inquiries is the heartbeat of any property management practice. On your contract agreement template, your principal duties and responsibilities as a property manager are listed for potential clients to review.
The secret here is that this information is not only for landlords. It’s also a powerful tool to educate all of your referral engines, including sales agents, service desk teams, strata management, mortgage brokers, or any other stakeholders that could benefit from knowing how you help landlords.
Use the information in your contract to educate your partners as the more they understand how you help your clients, the easier it will be for them to drop your name in interactions.
If you manage to sign a new client off a referral or interaction, make sure you touch base with the referrer to let them know how it went. This builds more trust and confidence with your network, hopefully leading to more opportunities.
In real estate, it’s common that property managers will charge landlords a fixed percentage of monthly rental income as their fee.
Property managers are also responsible for appraising how much rent they think landlords can get in the current market place.
Before writing down your management fees on your contract, make sure you do your due diligence to thoroughly inspect and research the property so you have an accurate idea of how much you’ll be charging for your services.
While landlords want to get as much rent as they can, deep down, they probably have a realistic idea of what to expect. So be reasonable with your quote. If you go too high, it will look suspect. If you quote too low, landlords may not have confidence in your ability to market the property.
Your listing presentation is your moment to impress your clients and ultimately win the business. And to seal the deal, you need to get landlords to sign your property management agreement.
But you need to bring it first! What makes you unique? Is it your excellent negotiation skills? Your savvy internet marketing? Your ability to screen applicants efficiently? Whatever selling points you have, now is the time to showcase what you and your agency offer.
But once the dust settles and landlords are excited about the prospect of working with you, it’s time to discuss the terms and conditions of your property management agreement. At this point, you’ve presented what type of rent you can achieve for the property, and you’ve also highlighted your responsibilities during the management.
Your contract neatly summarises all of the points you’ve already made, and it’s a matter of checking the boxes as you guide clients through each section. If you do your groundwork, you should have no problem going back to the office with another signed property management agreement.
Now that you know some of the best practices when it comes to property management agreement let’s take the hard work off your plate with our free intern contract template.
