Advice/Things to avoid in Property Management Contracts?
Hi everyone,
I am reviewing a property management contract for the PM company that works with a turnkey provider I'm thinking of doing business with for a property in Indianapolis.
1. First month's rent, not to exceed $1000 for tenant placement fee (Wouldn't this pretty much be an incentive for tenant turnover?) -Is this the industry standard? Or is this company just, for lack of a better word, "tripping"?
2. Tenant resign fee for resigning a new lease and the end of a good standing lease term = half of monthly rent. - Again, is this the industry standard?
3. Expenditures in excess of $400 require owner approval. - Should this amount be lower? I've read in other posts people mentioning $200.
4. Wording Regarding termination of contract.
"Either party may terminate this agreement at the end of the contract period by giving 30 day written notice. Failure to give written notice of cancellation shall renew this agreement for a like period under the same terms etc." -
I'm no lawyer but this seems like I cannot just give a 30 day notice whenever I feel unhappy, that I must wait til the end of a contract period and give 30 days notice before the contract is up, just to get out of the contract?
I'm not sure if it is within forum rules to link to the document, but I can email it to anyone if they want to take a look at the rest of it to help out.
The name of the PM company is PARC Property Management. If anyone has used, or is using this PM company and wants to chime in, I'd appreciate it big time also!
Anyone have a good PM company they can recommend in the area? Has anyone used reddoorrents.com? They seem awesome by the info on their web page
Thanks so much in advance