Yes, it is. A property management contract is a contract between the owner of the property and the property manager or management company engaged to operate the property. This legally binding document is a standard requirement in property management and describes the responsibilities of the manager as well as the tasks that remain between the responsibilities of the owner. What is included in the «gross revenue» affects the amount of management fees for the duration of the agreement, so make sure all parties understand exactly what should be included. Note in particular that this is a negotiated term that should be discussed with your lawyer. In general, a property management contract always contains the same types of basic information. In the agreement, all parties concerned are indicated by their name and the address and / or legal description of the property are indicated. It will describe the responsibilities of the manager or management team and will include some or all of the following: providing for the advertising and leasing of the property; Structure for maintenance, repairs and housekeeping; the conditions of financial prosecution and liabilities such as the collection of rent or late fees; guidelines to address tenants` issues and concerns; provisions for 24-hour emergency services; requirements for ordering consumables for the building; and describe all the rules and regulations that must be applied and that have been established by the owner in the leases. The contract will also outline the owner`s responsibilities, which largely relate to communication with the manager or management team. All fees and commissions of the manager, as well as the duration for which the contract is valid, are also included in the contract.
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