STR Property Management Agreements
Stevens Realty
When you, as a property owner, choose to partner with Stevens Realty, you’ll be entering into a legal relationship formalized through our Property Management Agreement. This agreement details the legal terms, responsibilities, and expectations of our partnership.
Here, we’ve highlighted seven key parts of the Property Management Agreement that you should review carefully before finalizing this relationship with Stevens Realty. Be sure to read through to the end, as we’ll also cover some important insights that the agreement itself CAN’T convey.
STR Property Management Agreements
1. How Easy Is It To Cancel The Agreement?
The agreement can be cancelled by either party with 30 days written notice. The owner can also terminate the agreement immediately without notice in the case of a bona fide sale of the property. The property management company can terminate the contract with 30 days written notice if they are unable to discharge their duties.
2. Are The Fees Hidden In the Agreement?
No, the fees are not hidden; they are outlined in the agreement and its addenda. It details management fees, additional service fees, and potential tenant charges clearly under sections like the 2023 Pricing Matrix, Schedule of Other Fees, and Additional Information.
3.How Much Money Do I Have To Place In Reserve?
The property management company requires the owner to maintain a reserve fund, the amount of which depends on the number of properties:
1 to 10 Properties: $500
11 to 25 Properties: $1,000
26 to 100 Properties: $2,500
101+ Properties: $5,000
4. How Fast Do I Get My Money?
The property management company is required to deliver monthly statements and remit rental proceeds collected (minus any authorized deductions) to the owner no later than the 15th of each month, the next business day if the 15th falls on a weekend or holiday.
5. What Is The Maintenance Trigger?
The property management company can make repairs up to $500 without prior approval from the owner, except in the case of an emergency, where they can make necessary expenditures to preserve the property or prevent further damage without prior approval.
6. What Are The Guarantees?
Guarantees mentioned in the agreement include:
28 Days Tenant Placement Guarantee: No management fee for the first month if a qualified tenant is not placed within 28 days under specific conditions.
6 Months Leasing Guarantee: Waives the next Tenant Placement Fee if unable to lease the property for at least 6 months.
90-Day Owner Satisfaction Guarantee: Allows for termination of the agreement within 90 days if the owner is not satisfied, refunding all administrative fees charged since the start, excluding costs associated with property repairs.
7. Who Handles Evictions?
The property management company handles evictions. They prepare all necessary paperwork and may coordinate with legal professionals as required. They also manage all administrative tasks associated with evictions, including court appearances, but specific legal fees and procedures might incur additional costs to the owner.
What the Property Management Agreement Can’t Tell You-
The Property Management Agreement provides extensive details on roles, responsibilities, and fees, but there are several important aspects it may not fully convey. Here’s what the agreement can’t tell you:
The Quality of Tenant Screening and Placement, Level of Communication and Responsiveness, Consistency in Maintenance and Repairs, Handling of Conflicts with Tenants, Tenant Turnover and Vacancy Rates, Real Cost Impact Over Time, Reputation and Owner Satisfaction, Adaptability in Handling Unique Situations, and the Level of Proactive Management.
Getting additional feedback from current or previous clients and discussing these points directly with the property management company can help bridge these gaps in understanding.
