Time Business News — A property management agreement is possibly one of the most important documents you will encounter as a Perth property investor. It essentially details the responsibilities of the elected property manager and the role of the landlord. It’s absolutely crucial that investors understand and comprehend their written management agreement in order to avoid any confusion in the future. These written agreements can vary a lot between property management companies, but there are a few points that should be covered in all agreements. If you’re finding that your elected property management company isn’t covering these points, then you might want to reconsider who you want to be managing your investment.
Responsibilities of the Property Management Company
This section will outline the specific services that the landlord will be receiving from the property management company. This also includes detailed fees on these services. This is where hiring a reputable company pays off, as they are typically far more transparent about any fees and charges. Some companies may try to position themselves as a cheaper option, by offering a low flat rate but charging exorbitant prices for ‘extra’ services. You need to be certain that the agency isn’t trying to classify necessary services, such as sourcing tenants and collecting rent, as pricey ‘extras’. Some of the common responsibilities of a property manager include:
- Negotiating and setting the appropriate rent.
- Sourcing and vetting suitable tenants.
- Advertising and marketing of the property.
- Lodging bonds with the appropriate authority.
- Conducting regular routine inspections.
- Preparing a Property Conditions Report.
If you’ve engaged a reputable, experienced property management company, then you likely have nothing to worry about in terms of hidden fees and misleading clauses. If you’re ever struggling to interpret some of the terminologies mentioned in the property management agreement, it can definitely pay to hire a lawyer to look over the document for you.
Responsibilities of the Owner
This section of the property management agreement is absolutely just as important as the previous. Understanding your role and responsibilities as a landlord will not only set yourself up for a successful partnership with your property management company, but it will also allow you to adequately plan and account for any potential expenses. Just like with the responsibilities of property managers, the responsibilities of landlords will vary a lot between different agreements. However, broadly, there are two common major responsibilities of an investor:
- Ensuring that the property is in compliance with the appropriate regulations, including having working smoke detectors, and adequate security, to mention a few.
- Arranging and maintaining an adequate level of insurance in regard to leasing the property.
Property management agreements for Perth-based investors should act as an open dialogue between themselves and their trusted Perth property management company. The selected company should have no issue in clarifying or answering any questions you may have on the agreement. If you’re looking for a company with over 66 years of specialised experience within the Perth real estate market, then consider reaching out to Time Conti Sheffield. Their property management team pride themselves on delivering transparent service and advice that Perth property investors can trust.