Management and Leasing Agreement

Introduction:

A management and leasing agreement is a legal agreement that allows a property owner to hand over the management and leasing responsibilities of their property to a professional property management company. Property management firms manage operations of rental properties on behalf of landlords, such as collecting rent, handling maintenance and repairs, and ensuring compliance with local and state laws. In this article, we will dive deep into everything you need to know about management and leasing agreements.

Why a Management and Leasing Agreement is Important:

A management and leasing agreement is essential for property owners who want to run their rental properties as a business while reducing their workload. It allows property owners to focus on other essential aspects of their lives and businesses while leaving the management and leasing tasks to the professionals.

Moreover, property management firms provide expert guidance on tenant screening, rent collection, maintenance, and repairs while taking the legal responsibility for the property. They have the experience and resources to handle the intricacies of running a rental business, which can help property owners save time and costs.

Typical Provisions in a Management and Leasing Agreement:

A typical management and leasing agreement includes the following provisions:

1. Property Management Services: The agreement should detail the services provided by the management company, such as rent collection, maintenance, repairs, and eviction proceedings.

2. Management Fees: The agreement should clearly state the management fee charged by the property management firm, including the payment schedule.

3. Responsibility for Expenses: The agreement should specify who is responsible for paying expenses, such as property taxes, insurance, repairs, and maintenance.

4. Term of the Agreement: The agreement should state the duration of the contract, whether it is for a fixed term or ongoing, and the notice requirements for termination.

5. Tenant Screening and Selection: The agreement should outline the process for tenant screening and selection, including tenant application forms, background checks, and lease agreements.

6. Rent Collection: The agreement should specify the rent amount, due date, late fees, and procedures for collecting rent.

7. Maintenance and Repairs: The agreement should establish the procedures and responsibilities for maintenance and repairs, including the notification process, access to the property, and who will oversee and pay for the services.

Conclusion:

In conclusion, a management and leasing agreement is an essential legal document that property owners should consider if they want to reduce their workload and run their rental properties as a business. It provides expert guidance and legal responsibilities to the property management company, allowing property owners to focus on other essential aspects of their lives and businesses. The agreement should clearly state the services provided, management fees, tenant selection process, rent collection, and maintenance procedures. If you are a property owner, consider hiring a property management firm and signing a management and leasing agreement to help you run your rental business smoothly.