TN 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.
TN Property Management Agreements
1. How Easy Is It To Cancel The Agreement?
Canceling the agreement with Stevens Realty is straightforward. The agreement is on a month-to-month basis, allowing either party to terminate it by providing a 30-day written notice. Here are the key points regarding cancellation:
1. 30-Day Notice Requirement: To cancel, the owner or Stevens Realty must give a 30-day written notice.
2. Immediate Termination Upon Sale: If the property is sold, the agreement can be terminated immediately without the need for the 30-day notice.
3. Termination Due to Default: If either party defaults on their obligations, the non-defaulting party can terminate the agreement with a 30-day notice if the default is not resolved within that period.
4. Outstanding Fees and Expenses: Upon termination, the owner must settle any outstanding fees and reimburse Stevens Realty for any expenditures made on behalf of the property.
5. Final Accounting: Stevens Realty will provide a final statement and transfer any remaining rents or security deposits to the owner as part of the termination process. A flat fee may apply to cover the final accounting and file closure.
The process is designed to be flexible, with minimal requirements beyond the notice and final settlement.
2. Are The Fees Hidden In the Agreement?
The agreement does specify various fees in detail, but understanding them may require careful review since some are itemized within different sections and addenda. While the fees are not necessarily hidden, they are distributed across various sections and addenda, so reviewing the entire agreement and its attachments is essential to fully understand all potential costs.
3. How Much Money Do I Have To Place In Reserve?
The agreement specifies that owners must maintain a reserve fund with Stevens Realty to cover expenses related to the property. The required amount varies based on the number of properties under management:
1 to 10 Properties: $500
11 to 25 Properties: $1,000
26 to 100 Properties: $2,500
101+ Properties: $5,000
This reserve is used by Stevens Realty to pay for expenses that arise, and any unused balance will be returned to the owner when the management agreement ends.
4. How Fast Do I Get My Money?
Stevens Realty commits to disbursing rental proceeds to owners by the 15th of each month, covering the previous month’s income. If the 15th falls on a weekend or holiday, payments are processed on the next business day. This schedule is designed to ensure timely, consistent payouts while allowing for processing and reconciliation of income and expenses from the previous month.
5. What Is The Maintenance Trigger?
The agreement specifies a maintenance trigger of $500. This means that Stevens Realty can authorize repairs and maintenance up to $500 without needing prior approval from the owner. For repairs exceeding $500, Stevens Realty will seek the owner's approval before proceeding, except in emergencies where immediate action is required to prevent further damage to the property. In emergency situations, Stevens Realty has the discretion to exceed this $500 limit without prior approval to address urgent issues promptly and protect the property.
6. What Are The Guarantees?
The agreement includes several optional guarantees for added protection to the owner, covering various aspects of property management. Here are the main guarantees offered: Pet Protection Program, Eviction Assurance Program, Rent Protection Program, Damage Assurance Program.
Each guarantee is optional and incurs a monthly fee, offering owners added protection against specific risks associated with property management and tenant issues. These programs are designed to reduce potential losses and enhance peace of mind for property owners.
7. Who Handles Evictions?
Stevens Realty handles the eviction process on behalf of the property owner. If the owner has enrolled in the Eviction Assurance Program, some or all of the eviction-related costs may be covered, up to $2,500. This includes court fees, legal notices, and costs associated with tenant removal.
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.
