The Best Property Management in Huntington Beach Discusses Contracts

If you are considering hiring the best property management company in Huntington Beach, you’re going to want to carefully consider the contract you sign. Any contract, especially the one you sign with a property management company, is not at all a formality, but it determines the services you choose to receive, the costs you incur for those services, and the legal rights you will have within the relationship between you and the management company.

A contract is designed to eliminate any and all confusion, as well as provide a clear and mutual understanding of the relationship you are about to enter into. A good contract should describe what could happen when disputes arise. Even though you’re looking to hire a professional and ethical company, you should still choose to thoroughly read the contract.

Duration of Contract

Most property management companies will require at least a one-year contract, and most do not offer month to month services. The contract will be legally binding as soon as it’s executed, but a start date may be noted in the contract. Once the primary term is over, it’s possible the contract will automatically renew.

Duties and Responsibilities

Your contract should also lay out the expected duties and responsibilities between you and the property management company. The contract should give detail as to the tasks and responsibilities of each party of the contract, outlining the main duties the owners are responsible for, and the duties that the management team must adhere to.

Termination

The termination clause in your contract is one of the most important pieces of information in the entire document. This dictates the circumstances in which you or the property manager can terminate the contract, and the penalties it may cost you once that termination takes place.

If you fail to have an exit plan in your contract, you could find yourself trapped in a relationship you no longer want to, or have the ability, to be in. Within this important clause in your contract, you’ll want to note how much time is required for you to provide proper notice to your property management company.

Another important piece of information in your termination portion of the contact is whether or not there will be penalties or fees for terminating early. Some contracts require the payment of monthly management fees up until the duration of the remaining terms, while others may require a flat fee for termination.

When hiring a property management company, you not only want to retain one that has a reputation for being fair, but also one that understands the importance of a fair contract. When researching the best property management in Huntington Beach, be sure to consider all of the above factors, and look for a company that takes formulating a good strong contract seriously.

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