Operations start with a clear answer to one question: what exactly do you do for an owner, and what do you not do?
- List your services: leasing, rent collection, maintenance coordination, inspections, accounting, renewals.
- State fees for each and what triggers them.
- Define approval limits, such as the repair amount you can authorize without owner sign-off.
- Set communication and reporting commitments.
Managing property for others for compensation often requires a real estate broker or property management license. Check your state’s licensing rules and have an attorney prepare your management agreement.
What a management agreement usually covers
- Term, renewal and how either side can end the agreement, including notice and what happens to deposits, keys and records at hand-over.
- Fees: monthly management fee, leasing fee, renewal fee, markups on maintenance, and any fees for evictions or court time.
- Owner responsibilities: insurance, funding reserves, paying for repairs above the approval limit, legal compliance of the property.
- Your authority: signing leases, hiring vendors, collecting and holding funds, serving notices.
Write the agreement in plain language and walk the owner through it before they sign. Disputes later almost always trace back to something that was assumed rather than written down.
Action item
Write a one-page service menu with fees and approval limits.