Tips on what to do before signing a contract.
Disputes can create a lot of unnecessary stress, and lawsuits can eat away at any company’s profits. In this post, we’re going to share a few helpful tips on what to do before you sign a contract with a property management company.
Read the Fine Print.
We admit, reading a property management contract can be arduous and time-consuming. However, knowing exactly what’s in the contract will let you know what type of services you will receive and the fees involved. That way, there aren’t any surprises.
However, not all companies are created equal. In fact, some property management companies such as Metropolitan Pacific Properties go to great lengths to ensure that there are no surprises. Clients receive all of the services required in one price, upfront. Metropolitan’s contracts are distinctly all-inclusive. That means there are no additional fees to the property for anything (e.g. project management, ECB regulatory hearings, paper copies/mailings, etc.). It also means that there are no hidden costs in the fine print. Hiring a company that is clear and transparent about what it includes is highly recommended.
Ask an Attorney
If you don’t have the time to review your contract, delegate this task to your attorney. The advantage of having an attorney review a contract is that he/she will be able to spot any loopholes. Plus, a good attorney will take the time to read the fine print and point out any discrepancies.
For example, services such as, filling vacancies, rent collection, maintenance repairs, and screening new applicants may or may not be included. It is important that you know in advance what services you will receive from day one.
Review Multiple Contracts & Schedule Interviews
Make sure you review more than one contract to find the company most aligned to your needs. Reviewing property management contracts will give you a general idea of which property management company offers the best property management service for your money.
Understand The Property Manager’s Legal Liability
Every property owner is held liable for a variety of issues, including: slip and fall accidents, vandalism, crimes on the property and pest control. Your contract should clearly state the types of situations a manager is considered at fault legally. The contract should also state what a property manager is held liable for and what he/she is not liable for in a legal situation. Don’t neglect this important aspect of a contract because you could be held responsible for a situation if it isn’t clearly stated within the contract.
A contract should also list the responsibilities of a property owner. If you made an agreement that the property manager will be handling eviction proceedings or accounting, a contract should state these services. Otherwise, you may be held responsible for fulfilling the requirements.
Finally, work with a NY property management company that has been in business for over twenty years and whose staff has over 30 years of experience. It’s also a good idea to ask if the company has in-house CPAs. Focus on a company that has a strong acumen in managing finances and can demonstrate how it has increased revenues and saved costs.
If you are searching for a reliable property management company in New York City, please reach out to us today for a free consultation at: (718) 626-4400.