Property management agreements are a key aspect of managing any rental property. They outline the responsibilities of both the property owner and the property manager, and help ensure that the property is well-maintained and leased to responsible tenants. However, there are some common misconceptions about property management agreements. In this article, we`ll explore which of the following is false regarding property management agreements.

False: Property management agreements are one-size-fits-all

Many people assume that property management agreements are standard contracts that apply to all rental properties. This is not the case. Every property is unique, and every property management agreement should be tailored to meet the specific needs of the property owner and the property itself.

A good property management agreement should include details about the property`s location, size, age, and condition, as well as any unique features or challenges. It should also address the owner`s goals and expectations for the property, as well as the manager`s duties and responsibilities.

False: Property owners have no say in the tenant screening process

Another common misconception is that property owners have no say in who their tenants are. In fact, the opposite is true. Property owners have the final say in the tenant selection process, and can set their own criteria for acceptable tenants.

A good property management agreement should outline the tenant screening process and the criteria for tenant selection. This should include factors such as credit scores, income levels, rental histories, and criminal records. The property owner should have the opportunity to review and approve all tenant applications before any leases are signed.

False: Property managers can make unlimited repairs without owner approval

While property managers are responsible for ensuring that the property is well-maintained, they cannot make unlimited repairs without the owner`s approval. A good property management agreement should specify the types of repairs that the manager is authorized to make without approval, as well as the threshold for repair costs that require owner approval.

In addition, the agreement should outline the process for handling repairs and maintenance issues, including how they are reported, how they are prioritized, and how they are resolved. This helps ensure that repairs are made in a timely and cost-effective manner, while also protecting the owner`s investment.

Conclusion

In conclusion, property management agreements are not one-size-fits-all, property owners have a say in the tenant screening process, and property managers cannot make unlimited repairs without owner approval. By understanding these and other key aspects of property management agreements, property owners can ensure that their investment is well-protected and managed effectively.