After reviewing several property management agreements I have on hand, I came up with a list of clauses and terms that should be in any property management agreement you sign with an outside management company. Due Diligence This is probably the most important clause you can have in a management agreement. In it the management company promises to doits best when managing your property. The professional property manager has an extra duty of diligence, since it has implied, by taking on a management contract, that it is expert in rental property management. Here they are obligated to tell you what's going on in the management of your property, as necessary.
Every state has some kind of law regarding the accounting procedures of licensed property managers.
Every agreement will have a provision that provides for the property management company's following the law. Since accounting is a statutory requirement, all you can expect is the management company's agreement to obey the law and send the right amount of money periodically. One thing to watch out for, though, is when they will send the money. Every agreement will have a provision for its termination. Repairs Just about every management agreement will provide for the management company to handle repairs.