Property management can be a complex and time-consuming task, especially for property owners who live far away from their investment property. A property management agreement can provide a simple solution for property owners who want to delegate the responsibility of managing their real estate property to a property management company. Here are some key points to consider when drafting a property management agreement.
A property management agreement is a legally binding contract between a property owner and a property management company. It outlines the terms and conditions under which the management company will provide services to the property owner for managing their real estate property.
A property management agreement helps property owners to effectively delegate property management responsibilities to a professional property management company. This agreement outlines the scope of services provided, the duration of the contract, the fees payable, and the responsibilities of both parties.
A property management agreement ensures that the property owner's investment is managed effectively and efficiently, without the need for the owner's active involvement. It also provides peace of mind knowing that the property is being managed by professionals who are knowledgeable in property management.
A property management agreement is necessary when a property owner wants to delegate the responsibility of managing their real estate property to a professional property management company. This is especially useful for property owners who live far away from their investment property.
To make a property management agreement legally binding, it should be carefully read and signed by both the property owner and the property management company. The agreement should be printed on stamp paper or e-stamp paper as per the provisions set out in the Stamp Act. The document can easily be e-signed through online platforms like Wizard Legal's platform.
The property management agreement is governed by the Indian Contract Act, 1872, the Transfer of Property Act, 1882, Income Tax Act, 1961, The Goods and Services Tax (GST) Act, 2017, and also the relevant rent control act of the state.
