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Paperwork

Category: Property Management | Permalink

Published: Saturday, January 30, 2010

Paperwork, paperwork, paperwork

hen you decide to go with a property management company to lease your home to the most qualified applicant, you may be surprised at the detail of paperwork involved in your transaction. Like a purchase contract, the decision to rent your home involves different levels of interaction between agents, clients, and tenants in which every individual needs to be perfectly aware of their responsibility to each other. Every page counts!

Lease Listing Agreement. A lease listing agreement is a contract in which you and your property manager set the terms for marketing and leasing your home and for the compensation of the agent with whom you are working. It may set a term for the leasing of your home, and give the agent a timeframe to find a qualified renter. This is a good time to ask about fees and advertising techniques that your agent will employ to show your home.

Property Management Agreement. Once your home is rented, and the renters have moved in, you may decide to take advantage of the knowledge and time of your leasing agent by hiring their company on to manage your property. A property management agreement will set forth the fees, levels of service, method of payment, and the responsibilities that the company agrees takes on in your behalf as your representative to the renter.

Month-to-month rental or lease agreement. This contract between you, the renter and/or the broker covers lease terms; rental amounts; methods of payments; acceptable use and treatment in regards to the home in accordance with county, state, and federal law; maintenance of the home; obligations, disclosures, and responsibilities; and signatures of every party involved in the process, including co-signors and guarantors. Additional addendums to the contract may be included in attached pages in case of unique lease terms or allowances.

Disclosures. Although the rental or lease agreement contains disclosures regarding use of security deposit, Megan�s Law database and other disclosures regarding the condition of the premises, additional disclosures may be required that address the unique features of your deal: if, for example, your home was built before 1978; if your home has been tested for and cleared of wood-destroying pests; if your home has a pool; or if your renter�s have pets. These disclosures are part of the materials that your property management company has access to and will be able to put to work for you.