What Should a Property Management Contract Include?

When you hire a property management company to oversee your rental property, one of the first things you’ll sign is a property management contract. This agreement outlines what the company will do, how they’ll be compensated, and what responsibilities remain with you as the owner.

Understanding what should be included in a property management contract helps you protect your investment and ensures that both parties know what to expect. For Pittsburgh landlords, this agreement sets the foundation for a smooth and transparent partnership.

Let’s break down what every property management contract should cover and why each section matters.

Clear Identification of Parties Involved

The contract should start by clearly identifying both parties:

• The property owner or landlord (you)

• The property management company (such as Nulf Management Services)

  
  

It should also include basic property details like the address, type of property, and the duration of the agreement. This ensures there’s no confusion about what property is being managed or who’s responsible for what.

Scope of Management Services

Every contract should detail exactly what services the property manager will provide. This section defines the manager’s responsibilities and ensures you know what you’re paying for.

Typical services include:

• Advertising and marketing vacant units

• Tenant screening and lease signing

• Rent collection and deposit handling

• Property inspections and maintenance coordination

• Lease enforcement and eviction management

• Financial reporting and accounting

  
  

This part of the contract helps landlords avoid misunderstandings and ensures that nothing falls through the cracks.

Management Fees and Payment Terms

One of the most important parts of the agreement is the fee structure. Property management companies typically charge either:

• A percentage of the monthly rent (often between 8% and 12%)

• A flat monthly fee

• Or a combination of both, depending on services offered

  
  

The contract should also explain how and when payments will be made, along with any additional costs, such as:

• Leasing or placement fees

• Maintenance coordination fees

• Eviction or legal processing fees

  
  

Understanding these terms upfront prevents confusion later and ensures full transparency about costs.

Responsibilities of the Property Owner

While property managers handle most day-to-day operations, landlords still have certain responsibilities. The contract should clarify what those are. Common examples include:

• Maintaining adequate insurance coverage for the property

• Approving major repairs or capital improvements above a certain cost threshold

• Providing necessary funds for property-related expenses if needed

  
  

Clearly defining these duties helps prevent disputes and keeps the partnership running smoothly.

Term and Termination Clauses

A strong contract will specify the duration of the agreement (often one year) and outline the conditions for termination.

Key details to look for include:

• Notice period: How much time must be given before ending the agreement (usually 30 to 60 days)

• Termination fees: Any costs associated with early cancellation

• Automatic renewal clauses: Whether the contract renews automatically and how to opt out

  
  

Knowing how and when you can terminate the agreement gives you flexibility and control.

Authority and Decision-Making Power

The contract should explain what decisions the property manager can make without prior approval. This might include:

• Approving repairs below a certain cost limit

• Enforcing lease terms or applying late fees

• Renewing leases under pre-approved conditions

  
  

This section ensures managers can act efficiently while still respecting your authority as the property owner.

Accounting and Financial Reporting

Property management involves handling rent payments, security deposits, and maintenance expenses. Your contract should detail how financial reporting will work, including:

• Frequency of owner statements (monthly or quarterly)

• What information will be included in reports

• How and when funds will be distributed to you

  
  

Reliable accounting practices ensure transparency and help landlords track performance easily.

Insurance and Liability Protection

Every property management contract should include sections on insurance and liability coverage. These protect both you and the property manager in case of accidents, damage, or legal disputes.

Make sure the contract specifies that the manager carries professional liability insurance and general liability coverage. You may also be asked to list the management company as an “additional insured” on your property insurance policy.

Dispute Resolution and Legal Terms

If conflicts arise, your contract should outline how they’ll be resolved. Common options include mediation, arbitration, or court proceedings. This section ensures both parties understand their legal rights and responsibilities.

Why a Clear Contract Matters

A well-written property management contract creates trust and transparency. It ensures both you and your manager understand expectations, financial terms, and boundaries. Without this clarity, even small misunderstandings can become major issues.

Working with a professional company like Nulf Management Services ensures your contract is comprehensive and fair. Their team explains every clause in detail and customizes agreements based on each landlord’s unique needs.

Let’s Make Your Property Management Partnership Secure

At Nulf Management Services, we believe that clarity builds confidence. Our team works closely with Pittsburgh landlords to create straightforward, detailed property management contracts that protect both your investment and your peace of mind.

We handle everything from lease agreements and financial reporting to maintenance coordination and rent collection, all guided by a clear and professional contract.

Call 412-228-5783 or fill out our online form today to learn how we can help you manage your Pittsburgh property with confidence and transparency.