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HIRING A PROPERTY MANAGER

How do property managers charge for their services?

Fees are typically paid in one of two ways - more typically percentage fee, and sometimes a flat fee. Percentage fees can be a good incentive to the manager to improve the income of the building. A flat fee may be more appropriate when the property is a condominium or a type of cooperative complex.

What is the owner's employment relationship with the property manager?

Property owners either employ the property manager directly or they employ them indirectly through a contract with a property management firm.

Will I need a property management contract or agreement?

Regardless of the type of property, a written agreement between the owner of the property and the manager is very important, as the manager will be taking on significant responsibilities with the owner's real estate. At the very least the contract should:

Identify the parties and the property
Specify the length of time of the contract
List the responsibilities and the authority of the manager
List the responsibilities of the owner
State the fees and leasing or sales commissions and
Include the date of the agreement and the signatures of the parties.

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