Have you actually read the whole management agreement, or just the page with the fee on it? Most owners compare pricing and skim the contract, but the clauses that cause problems later rarely sit on the pricing page.
Term, Renewal, and Termination
Start with how long the initial term runs, whether the agreement renews automatically, and how much notice you must give to leave. Look for an early termination fee, and for what happens when the agreement ends: how quickly security deposits, tenant files, and keys transfer to you or your next manager. A flexible exit is a sign of confidence, and a contract that’s hard to leave deserves extra scrutiny before you sign it. It also helps to have the fee schedule attached to the agreement itself, so the pricing you were quoted is the pricing in the contract.
Spending Authority and Maintenance
Find the dollar amount your manager can spend on a repair without asking you first, and how the agreement defines an emergency. A very low threshold slows routine repairs, while a very high one takes the decision out of your hands. Ask whether the manager uses preferred vendors, whether you can bring your own, and whether any markup applies to vendor invoices. Our maintenance team coordinates repairs across the Peninsula, and those are the same questions worth putting to any company you’re considering.
Money Handling and Reporting
Ask where rent and deposits are held, how quickly owner payments go out after rent is collected, and how often you’ll receive statements. In California, managing rental property for others generally requires a real estate broker license, and you can confirm a company’s status with the California Department of Real Estate before signing. A manager who is licensed, holds client funds in a trust account, and reports on a clear schedule is doing the basics right.
Leases, Insurance, and Liability
See who is authorized to sign leases and renewals on your behalf, and whether you need approval for the terms. Check what insurance the manager carries and whether the agreement asks you to name them on your own policy. Then read the indemnification language, which spells out who pays if a claim arises. These clauses are dense, so having an attorney review the agreement is reasonable if anything is unclear.
Read It Like You’re Already Living With It
A useful test is to picture a bad month: a late repair, a tenant dispute, a disagreement over a bill. Then ask what the agreement says about each. If it’s silent or vague on the situations most likely to cause friction, ask for clarification in writing before you sign. To see how these points play out in practice, start with our property management services in San Mateo.
