A property management contract is an agreement between a property holder and the property Management Company or individual employed to handle the property. This agreement covers all of the tasks that a property management company in Pune is taking on for the landlord. And factually, this agreement does more than merely clearing up the responsibilities both parties would maintain. Furthermore, it covers the officially authorized liabilities as well.
It’s imperative that both parties are clear on what is covered within the property management agreement. Time and again, property managers and landlords have a vocal discussion about duties and tasks. The contract surpasses anything that was contracted to in words.
So let us understand the roles and responsibilities covered in the lease contracts for property Management Company in Pune:
Functions of a Property Manager
A property manager is an individual who takes care of more than a few features of business, industrial or uptown properties for the landlord. The land possessor is deemed the “property-owner” when the property is rented out.
The property manager makes sure that the rented land and property is maintained, together with supervising repairs and maintenance of the property. The property manager deals with the collection of monthly rental fees from renters as well.
A good number of property managers act as the association between the lease holders and the property owners concerning the rented possessions throughout the parcel’s rent.
Most property management companies in Pune are charged with prospective lease holder background, credit, as well as reference checks. Depending on the property management company contract, the property owner or the property manager may be in charge of choosing or rejecting renters.
Roles of a Landlord
Landlords possess the property that is being rented. Compensation to the property manager may be a flat fee or a fraction of the rental price that the property manager accumulates. A property owner does not get paid a salary and would only make wealth off his or her leasing if they are gainful.
Roles of a Tenant
Tenants or leaseholders enter into a rent contract with the property owner, not the property manager. Typical property management contract between landlord and property manager is supposed to:Register all estimated duties of both partiesSpell out that the property management company in Pune cannot take any official action against the renter on behalf of the property ownerIndicate that the property-owner will hold security depositsState that the property-owner will sign all let outs, addendums and extensions with the renter and the property manager will not be accountable for signing any such papers.Indicate that purchases for repairs and maintenance up to a certain amount can be made without the landowner’s written permissionApprove the property manager to have a yearly property examination carried out by a third party inspector.
This is the part of the agreement that restricts the property manager’s legal responsibility. It is known as the hold harmless section as well. In the main, this clause would save the property manager from harm, except for the cases where they have been neglectful. The property manager is not, though, accountable for the neglect of third parties they employ. To defend yourself, you must make sure there is a “reasonable care” clause in the contract. For instance, the property manager will not be held legally responsible if “reasonable care” has been taken when appointing a third party. They are supposed to follow a line of investigation and not select a service provider with a history of grievances against them.
Services and Fees
Another essential part of the agreement for property Management Company in Pune you must know is what services the property manager has contracted to carry out and how much they would charge for these services. You need to know what functions are incorporated in the property management bill, what services can be act upon for an extra fee and what services will not be executed under any state of affairs.
You should stay away from signing an extended contract until you have demonstrated results from, and confidence in the property management company in Pune. For the most part, the property management companies in Pune will not sign an agreement for less than a year. In this case, you must cautiously assess the termination clause and make sure you can end the bond if you are discontented with the service.
Read more on:
- 5 use cases of property management services in India for NRIs
- Checklists for NRI to invest in Indian property
- How to register property in India guide for NRIs