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A property management agreement is a contract between a property owner and the management firm. It outlines how that company will run the rental propertys daily operations. Therefore, this document aims to define what services are the responsibility of the property manager and what tasks remain with the owner.
In most cases, the letting agent will charge the landlord a flat fee or a percentage of the rent and for a fully managed service, they will usually charge between 10-15% of the rent, which they will take in monthly payments.
When drafting a management contract, the main goal is to establish the guidelines by which the management company will assume control of another business. The contract enables the management company to take control of part of the companys operations so that it can run the daily operations in exchange for payment.
Most property management companies charge a monthly fee of between 8% 12% of the monthly rent collected. If the rent on your home is $1,200 per month the property management fee would be $120 based on an average fee of 10%.
Management Agreements The first requirement necessary to manage property in Arkansas is a real estate license. In light of the fact that property managers will be handling client funds, the regulations require every property management firm to have a principal broker overseeing their operations.
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When an investor comes to you with a property to manage it is important to have a property management agreement that is comprehensive and allows you to take care of the property, make profits for your property management company, and to be able to make a profit for the owner of the property.
A typical management agreement term can last for as little as 1 or 2 years. But, it can be for as long as 5 or 6 years, or even more. The terms of an agreement are traditionally structured with a minimum of one year followed by several options for additional years.
The property management agreement includes a comprehensive set of property management duties and responsibilities, including budget and reporting requirements, lease management, property repair, and maintenance.

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