C.A.R. Property Management Agreement: What You Need to Know
If you`re a property owner, you may be considering hiring a property management company to help you manage your rental properties. One of the most important steps in this process is signing a property management agreement. The California Association of Realtors (C.A.R.) provides a standardized property management agreement that many property owners and management companies use.
But what exactly is a C.A.R. property management agreement, and what should you know before signing one? Here`s what you need to know.
What Is a C.A.R. Property Management Agreement?
A C.A.R. property management agreement is a legal contract between a property owner and a property management company. It outlines the responsibilities of the management company, the fees they will charge, and the rights and duties of both parties.
C.A.R. provides a standardized form that covers many of the common issues that arise in property management, such as rent collection, maintenance and repairs, and tenant screening. However, it`s important to note that the form is not a one-size-fits-all solution. Your specific agreement may need to be customized to fit your needs and the needs of your property.
What Should You Consider Before Signing a C.A.R. Property Management Agreement?
Before you sign a C.A.R. property management agreement (or any property management agreement), there are several things you should consider.
First, think about the fees. Most property management companies charge a percentage of the monthly rent as their fee. Make sure you understand what percentage the company will be charging and what services are included in that fee. Some companies may charge additional fees for things like maintenance and repairs or vacancy advertising.
Next, consider the management company`s experience and reputation. Look for reviews online and ask for references from the company. You want to make sure you`re working with a company that has a track record of success and is easy to communicate with.
Finally, make sure you understand your rights and responsibilities as the property owner. The property management agreement should outline what you`re responsible for (such as paying property taxes and insurance) and what the management company will handle (such as handling tenant disputes and making repairs).
Why Use a C.A.R. Property Management Agreement?
Using a C.A.R. property management agreement can provide several benefits for property owners. First, it helps ensure that both parties are on the same page regarding their rights and responsibilities. This can help prevent misunderstandings and disputes down the line.
Additionally, using a standardized agreement can save time and money. Since the form covers many common issues, the parties don`t have to spend as much time negotiating individual terms. This can make the process of hiring a management company smoother and quicker.
Finally, using a C.A.R. property management agreement can provide peace of mind. Knowing that you have a legally binding agreement in place can help you feel more secure about hiring a management company to handle your property.
In conclusion, if you`re considering hiring a property management company to help you manage your rental properties, a C.A.R. property management agreement can help ensure that you and the management company are on the same page regarding your rights and responsibilities. Just make sure you carefully consider the terms of the agreement before signing.
