Lease-Only Property Management Agreement: Fill & Download for Free

Yes.I was 25 years old, and rented a home from a local property management company. They were wonderful to deal with, kind, fair and I signed a one year lease with the company.About a month into the agreement, the company let me know that the owner had fired them for renting the property to me. The owner was upset that there were children dwelling in the two bedroom duplex that she owned. The duplex was roomy, with a large yard that was basically unusable because of the lack of fencing and bordering two, very busy streets.The home had very few windows, in fact the two small windows in the bedrooms were not something you could escape out of in a fire because of the far drop and the small size. The kitchen had old appliances and was missing the dishwasher. Everything was done to the cheapest, builder grade material possible. Towel racks in the bathroom were put in the drywall, not in studs. The walls inside were exterior siding, in the living room on two walls, making it impossible to clean. The interior was dark, and the bedrooms had carpet from the ‘70’s in it that smelled as if an animal had used it for a litter box many times. I would be sitting in the living room and a cupboard door randomly fell off a couple of times.However, all that aside, I was thankful to have a place to live. I paid my rent on time and took care of the place well.After the owner took over for the property management company, she would pop in every week. She would give notice, but then call and say, “Actually, I am coming over now.”She would come in to “inspect closets”, and pull out any organizing I had done, leaving it strewn on the floor, upset that I was keeping shoes in the closet. I had just organized my plastics, when she wanted to see something in the back of the cupboard, swept it all to the floor and stuffed it back in without an apology.She lectured me on not dusting for cobwebs on the exterior siding that was inside often enough and scoffed at my request for a better working light fixture, fridge and replacement dishwasher.The neighbor notified me that when I was out of the house, she would go inside my home and use the bathroom. I would look out the window, and there she was, working in the yard. That was fine, except that as a part of paying rent, I was required to maintain and mow the yard. It was my property that I paid rent for, yet she would scowl if we were ever outside or allowed the children to play in the yard.Did she violate my privacy? Yes. She gave me no privacy. I felt as though I was an unwelcome guest in someone’s home, not a renter of a property.She strongly encouraged me that she would allow me to vacate my lease agreement many times. I desperately began searching for another place to live, which was difficult to find. I was beginning to believe it would be better to live in my car, than to live under her roof after several months of her harassing me.I was able to purchase a mobile home and pay lot rent, which was cheaper than paying rent at the time. I ended up only being her tenant for about 6 months, instead of a year. Thankfully, when I moved out, her son did the inspection instead of his mother. He was more than fair, and apologized for his mother’s behavior.I become a property manager because of her, so I can’t dislike her too much. I know I can do better than she.

Should real estate investors manage their investment property themselves or use the services of a professional property management? To answer this, let’s take a look at the pros and cons of a property management company:Pros of Property Management Companies1. Experience in the Real Estate MarketCompared to the average property investor, property management companies have supreme experience in the real estate market. Moreover, they are up-to-date on state and federal rules and regulations regarding landlord-tenant rights and responsibilities. Investors and landlords that are new to the real estate market would most likely benefit and learn from the experience provided by property management companies the most.When it comes to your investment property, making mistakes can be costly. A property management company will keep you in check regarding all the legalities and framework of the real estate market, meaning you’ll be less bound to make silly mistakes or unknowingly violate any laws and regulations.2. Take Care of Tenancy and EvictionOne of the best advantage of hiring a property management company is that they rid real estate investors of one of the toughest tasks, like finding appropriate tenants. This requires a thorough tenant screening process, which can be a pain for the average property investor.Property management companies deal with this issue without any difficulties. A property management company will create application forms, interview applicants, and choose the best tenant. This includes studying a tenant’s financials, recommendations, and legal situation.In addition, a professional property management will deal with any issues tenants may have after they move into the rental property. They receive their calls, listen to their suggestions and complaints, ensure that tenants stick to the rules of the lease agreement, and handle emergency repairs and maintenance issues to make sure tenants are happy and satisfied.Not only that, but professional property management also handles the undesirable tasks of evicting tenants from the rental property, in addition to the tenant turnover process. They receive the keys, inspect and clean the property, and handle the process of marketing it and finding new tenants again. Basically, they take away some responsibilities that real estate investors dread.3. Improved Services and Response TimeSome real estate investors don’t have a flexible schedule for attending to tenants and the investment property’s needs. Thus, another pro of hiring a property management company is that they handle all maintenance and repair tasks related to the investment property. This includes regular check-ups, maintenance, cleaning, and repairing of any damages.Moreover, professional property management companies typically have a solid network of plumbers, carpenters, electricians, and all other handymen. This means they provide prompt services in case of any required repairs, which keeps the investment property in a good shape. After all, any damage will add up to your rental expenses, and eventually will affect your rental income and overall rate of return on investment. On the other hand, a professional property management will most likely notice and fix damages in short order.4. Financial HelpThis advantage includes a number of aspects. First, thanks to their experience in the real estate market, property management companies have a good idea on how to set the right rent for the investment property that will generate a positive cash flow and maintain a good occupancy rate. Moreover, it will take care of collecting rent and ensure tenants are paying on time.Not only have that, but property management companies also help in setting a budget in order to ensure you stay on track of your expenses. They also keep records of all the financial aspects related to the rental property and ensure you’ll have access to these records when needed.Cons of Professional Property Management1. They’re Not CheapThe main reason many enter the real estate investing business is to make money through rental income. When hiring a property management company, you have to pay a significant percentage of rental income (typically 4% - 12%) for their services. This will definitely affect your profit margin as you’ll lose some of your revenues. Real estate investors who depend on their rental income to pay off their mortgages have to take this into consideration before hiring a property management company.Aside from the monthly fees that property management companies require, a property investor will also pay for additional different expenses when needed such as costs advertising and finding and screening tenants. This ultimately affects your cash on cash return; the higher your rental expenses are, the lower your cash on cash return becomes!Note: Mashvisor’s investment property calculator helps you calculate cash on cash return (in addition to other metrics like the cap rate and cash flow) to ensure you’re getting the best return on investment when determining whether or not a property management company is really needed.2. Less Control = Less KnowledgeAs mentioned earlier, one of the reasons why a property investor would consider hiring a property management company is not having to deal with issues like tenant screening, handling repairs and maintenance, collecting rent, tenant turnover and eviction process, etc. However, going through these processes yourself and interacting with tenants allows you to gain the needed knowledge on real estate investing.Therefore, giving a professional property management company the full control over a rental property will create a challenge of building relationships with tenants and leave the property investor feeling lost in the real estate market – simply because you can’t understand something that you have no experience with.Professional Property Management: Yes or No?The answer really depends on you and your investment. Although they’re not cheap, the list of services provided by a property management company make the amount paid irrelevant for some real estate investors. So, as a property investor, you should analyze your rental income and decide whether or not hiring a professional property management is worth the money.Head over to Mashvisor for the latest news and guides related to real estate investing to help make the best real estate investment decision!

Great property management is a big part of successful real estate investing career. Having to manage an investment property requires time, organization, social skills, and attention to details. This becomes much more challenging when you’re owning and managing a portfolio of multiple investment properties. The best advice here would be to hire a professional property management company to take care of your investment portfolio. Here’s why these are crucial for a real estate investor with a large investment portfolio:#1 Experience in the Real Estate MarketCompared to the average property investor, professional property management has supreme experience in the real estate market. Moreover, they are up-to-date on state and federal rules and regulations regarding landlord-tenant rights and responsibilities. Real estate investors and landlords who are new to the real estate market would most likely benefit and learn from the experience provided by professional property management companies the most.A professional property management company will keep you in check regarding all the legalities and the regulatory framework of the real estate market, meaning you’ll be less likely to make silly mistakes or unknowingly violate any laws and regulations.#2 Taking Care of Tenancy and EvictionOne of the best advantages of hiring a professional property management company is that they rid real estate investors of some of the toughest tasks, like finding appropriate tenants. Real estate investors can simply list their rental property and get tens of applications. However, that doesn’t mean they can tell the bad tenants from the good ones. Bad tenants can result in negative cash flow from unpaid rent and causing damage to the rental property. This is why finding the best tenants requires a thorough tenant screening process, which can be a pain for the average property investor.Related: Tenant Screening Process: Red Flags Landlords Should Not IgnoreProfessional property management companies deal with this issue without any difficulties. A professional property management will create the application, interview applicants, and choose the best tenant. This includes studying a tenant’s financials, recommendations, and legal situation. Not only that, but professional property management also handles the undesirable tasks of evicting tenants from the rental property.In addition, a professional property manager will deal with any issues tenants may have after they move into the rental property. They receive their calls, listen to their suggestions and complaints, ensure that tenants stick to the rules of the lease agreement, and handle emergency repairs and maintenance issues to make sure tenants are happy and satisfied.#3 Improved Services and Response TimeSome real estate investors don’t have a flexible schedule for attending to tenants and the investment property’s needs. Thus, another key reason for hiring a professional property management is that they handle all maintenance and repair tasks related to the investment property. This includes regular check-ups, maintenance, cleaning, and repairing of any damages.Moreover, a professional property manager will typically have a solid network of plumbers, carpenters, electricians, and all other handymen. This means that they provide real estate investors with prompt services in case of any required repairs, which keeps the investment property in a good shape.#4 Financial HelpProfessional property management have a good idea on how to set the right rent for the investment property that will generate a positive cash flow and maintain a good occupancy rate. Moreover, it will take care of collecting rent and ensure tenants are paying on time. Not only have that, but they also help in setting a budget in order to ensure you stay on track of your expenses. They also keep records of all the financial aspects related to the rental property and ensure you’ll have access to these records when needed.However, it has to be mentioned that they come with a price. When hiring a professional property management company, you have to pay a percentage of the rental income (typically 4%-12%) for their services. This will affect your profit margin, but with a large investment portfolio, it’s definitely worth the money.Hope this helps! Don’t forget to check out Mashvisor for the latest news and guides related to real estate investing.