Manitoba Property Management Agreement
Manitoba Property Management Agreement: What Is it and Why Is It Important?
Owning a property is a major investment, and it requires a lot of work to maintain and manage it. Hiring a property management company in Manitoba can help take some of the burden off property owners, but it’s important to have a written agreement in place to protect both parties.
A property management agreement is a legally binding contract between a property owner and a management company. It outlines the responsibilities of both parties, including the duties of the property manager, the fees the owner will pay, and the terms of the contract.
In Manitoba, property management companies are regulated under The Real Estate Services Act (RESA) and must hold a valid license to operate. The act also requires property managers to use a written agreement with their clients.
Why is a Property Management Agreement Important?
A property management agreement can help protect both the property owner and the management company. Here are a few reasons why having a written agreement in place is crucial:
1. Defines Responsibilities: A property management agreement clearly outlines the responsibilities of both parties. This helps ensure that everyone is on the same page and avoids misunderstandings down the road.
2. Protects Rights: The agreement also protects the rights of both the owner and the management company. It ensures that the owner’s property is managed in a professional and efficient manner, while also guaranteeing that the management company is paid for their services.
3. Establishes Fees: The agreement also establishes the fees that the owner will pay for the management company’s services. This helps avoid surprises on the owner’s end and ensures that the management company is fairly compensated for their work.
4. Sets Expectations: A property management agreement sets expectations for both parties. It outlines the standards that the management company must adhere to and the level of service that the owner can expect.
What Should Be Included in a Property Management Agreement?
A property management agreement should include the following elements:
1. Services: The agreement should detail the services that the management company will provide, including regular maintenance, rent collection, tenant screening and placement, marketing, and accounting.
2. Fees: The agreement should also establish the fees that the owner will pay for these services. This should include a breakdown of all costs, including management fees, maintenance fees, and any other charges.
3. Term: The agreement should specify the length of the contract, as well as the conditions for renewal and termination.
4. Responsibilities: The agreement should clearly outline the responsibilities of both parties. This includes the duties of the property manager, as well as the expectations for the property owner.
5. Insurance: The agreement should also address insurance requirements, including liability insurance for the property manager and any necessary property insurance for the owner.
6. Dispute Resolution: Finally, the agreement should establish a process for resolving disputes between the property owner and the management company.
A property management agreement is an essential document for property owners who want to protect their investment and ensure that their property is managed professionally and efficiently. By partnering with a licensed property management company in Manitoba and signing a written agreement, owners can enjoy the peace of mind that comes with knowing their property is in good hands.