Each Chesapeake property management company contract is bound to be different, but basically they contain the following clauses:
- There is an introductory paragraph that states the contract is legally binding and names the parties involved in signing the contract. There also might be a mention of the broker who will be acting on behalf of the property owner for the management of the property.
- There is also a section that clearly states the responsibilities of the manager as well as their powers and authority. These may include:
- Handling tenant and owner funds
- maintaining and inspecting property on regular basis
- setting the rents and collecting them
- marketing, screening tenants etc
- The contract should also clearly state the best effort/due diligence clause where the management company promises to do their best while managing the property.
Additionally, the contracts may contain a list of services which do not actually qualify as normal management duties but are nevertheless included as "work exceeding" list. If such a clause is included in the contract, then, as an owner, you should determine the billing rate of the same. If there is no specified rate, then a rate may be decided before the work is begun, or it may be the hourly billing rate as charged for other management duties. In any case, this should be clarified in the beginning in order to not receive any surprises down the road.