What is a Property Management Agreement?

27 Aug What is a Property Management Agreement?

Why do I need a property management agreement? In this article we answer these important questions as well as outlining what is usually included in a typical property management agreement and where to find a reliable local Auckland and Hamilton property management company.

Owning rental property can be a fantastic way to build wealth and leave a legacy for your heirs. In fact, investing in rental property has been a popular form of investment for thousands of Kiwis for decades. Many successful property investors enter into property management agreements with specialist property management companies as a way to effectively manage their property investments.

What will a property management company do for me?
Investing in rental property is not a walk in the park. It takes a lot of hard work and time to look for and find a suitable property to buy, plus an ongoing commitment of time and hard work to find and manage tenants, and to properly maintain the property so it can continue to generate a good income.

Alternatively, you can engage the services of a reliable property management company to look after your rental property. In exchange for a fee – either a fixed fee or a percentage of the weekly rent – the property manager will take on a variety of tasks associated with managing your rental property, such as finding tenants, collecting the bond and rent, dealing with maintenance issues, and sorting various other aspects of the day-to-day operations associated with the property and the tenants who live in it.

Why do I need a property management agreement?
To ensure a smooth and mutually profitable relationship between yourself and your property management company, it’s essential that you enter into a written agreement that sets out all the terms and conditions of your relationship.

Such an agreement is known as the property management agreement. Its purpose is to clearly stipulate all the responsibilities and tasks for which each party – you the property owner or landlord and your property management company – will be accountable.

As such, a property management agreement is an important legal document. Once the property management agreement is signed, it’s a legally binding document. Therefore, when you contract the services of a reliable property management company to look after your valuable property investment, it’s very important that you pay close attention to the stipulations contained in your property management agreement to ensure you know and understand what is expected of each party, so that nothing falls through the cracks.

What does a typical property management agreement cover?
As the owner of the property, you would naturally want your investment to get the same level of care that you would give it if you had the time to do so. The property management agreement enables you and your property manager to specify the nitty gritty of the responsibilities of each party, including things like:

  • The location of the rental property or properties.
  • The duration of the agreement between yourself and the property management company.
  • The fee the property management company will charge for its services.
  • The respective responsibilities of the owner/landlord and the property manager.
  • The respective liabilities of the owner and the property management company.
  • The conditions for termination of the property management agreement, should either party not meet the expectations of the other.

Where can I find out more about a property management agreement?

If you have invested in a rental property and would like a professional property manager to help you maximise the return on your investment, talk to one of the specialist property managers at Fahey Property Management Ltd. We will also be able to explain all aspects of a property management agreement to you and guide you through the process of what’s involved in setting one up. We’re only a phone call away, so give us a call today on (09) 524 5934.

Where can I find a local property management specialist?
As specialists in Auckland and Waikato based residential property management company, Fahey Property Management Ltd has extensive experience in managing rental properties.

We have built a strong reputation for providing our landlords with friendly, professional service aimed at removing the stress associated with managing all aspects of their rental properties.

Our property management agreements cover everything from listing your rental property for rent to vetting tenants, collecting rent, dealing with tenants and maintaining your property in top earning condition, and a whole lot more. For more detail about our property management services, visit the Property Management Services page on our website.

What’s my rental property worth?
As specialists in Auckland rental properties and Hamilton rental properties, we at Fahey Property Management offer a free rental appraisal of your Auckland or Hamilton rental property. To arrange for your free rental appraisal, please complete and submit the free rental appraisal request form on our website.