Oklahoma City Landlords: Read the Fine Print of Your Management Agreement (okc property management)
The other day a prospective client called me to let me know that they wanted my okc property management company to manage their properties. Their property management company had been overcharging them for maintenance and repairs. On top of that, half of their units were vacant.
But they didn’t know how to terminate the other okc property management company.
I told them that the first step is to get free of any contractual obligations you have to your current okc property management company.
You’ve got to check the terms of the existing okc property management agreement. You need to find out what in the contract requires for terminating the agreement.
My company makes easy for existing clients to leave us if they are not happy with our services. Let’s face it, if a customer is not happy, we need to let them go. What good is it to try to hold them hostage? We only require a 30-day notice to terminate the relationship.
So, my new clients read the contract they had with their existing okc property management company. I didn’t believe what they found.
The contract required a 30-day written notice to terminate the contract. There is nothing unusual about this. No big deal.
Here is the shocking part: The contract required them to pay their current okc property management company a monthly management fee for any tenants they placed for life. In other words, they would pay the prior okc property management company even after the manager had been terminated. This practice is somewhat like the commission collected by a commercial realtor for a tenant they have found for a commercial property. But I hadn’t ever seen that applied to a residential management contract for any Oklahoma City properties.
You absolutely must read any proposed okc property management agreement line-by-line.
You don’t necessarily need to have your attorney review the contract, but you might do that if it makes you more comfortable. The prospective clients wouldn’t have needed an attorney to discover these onerous terms. They just needed to read the contract.
The contract should contain at least these parts:
- The contract needs to definite who is responsible for doing what. It should state the responsibilities of the okc property management company. Likewise, it needs to define what your responsibilities.
- The agreement should state how much the okc property management company will be compensated.
- When the monthly statements are due.
- When the owner’s rents are due.
- How to terminate the contract.
The bottom line: always read the fine print.
Scott Nachatilo on Google+!