Understanding Your Property Management Agreement

A Property Management Agreement (PMA) is the legal contract that defines the relationship between you and your property management company. It outlines each party's responsibilities, fees, and expectations, making it one of the most important documents you'll review before trusting someone to manage your investment.

Before signing any agreement, here are eight key areas every property owner should understand.

1. Is the Agreement Easy to Cancel?

A quality property management company should earn your business every month, not lock you into a long-term contract. Look for:

• Month-to-month agreements
• No cancellation penalties
• No early termination fees

Our Agreement: We offer a month-to-month management agreement with no termination fees or penalties, giving you the flexibility to leave if you're ever dissatisfied.

2. Are the Fees Clear and Transparent?

Your management agreement should clearly explain every fee you may be charged. If fees are scattered throughout the contract or difficult to understand, it may be a sign of poor transparency. Before signing, make sure you understand:

• Management fees
• Leasing fees
• Renewal fees
• Maintenance coordination fees
• Administrative charges
• Any additional service costs

3. Was the Agreement Prepared by a Massachusetts Attorney?

Massachusetts law requires property management agreements to be reviewed by an attorney and to disclose that review within the agreement. If you don't see that disclosure, ask questions.

Our Agreement: Our Property Management Agreement has been prepared by Broderick Bancroft & Saccardi, a Massachusetts law firm that also assists us with landlord-tenant and eviction matters.

4. How Much Reserve Funding Is Required?

Most property managers maintain an owner reserve account to cover maintenance expenses or other costs that may occur before rent is collected.

Reserve requirements vary, but they're typically a few hundred dollars up to one month's rent.

Our Requirement: We maintain a $500 escrow reserve for each managed property.

5. When Will You Receive Your Rental Income?

One of the biggest questions owners have is when they'll receive their monthly rental proceeds.
Ask your property manager:

• When does the accounting cycle close?
• When are owner distributions processed?
• How are funds delivered?

Our Process: We close our accounting cycle on the 10th of each month and distribute owner funds through secure ACH direct deposit.

6. How Are Maintenance Requests Handled?

One of the biggest advantages of professional management is not having to deal with late-night maintenance calls. Your agreement should explain:

• What qualifies as an emergency
• Tenant versus owner responsibilities
• Repair approval limits
• When owners are contacted

Our Policy: We coordinate all maintenance and only contact owners for repair expenses exceeding $500, unless an emergency requires immediate action.

7. What Guarantees Are Included?

Not every company offers guarantees, but they can provide valuable peace of mind.
Ask whether your manager offers protection for:

• Tenant placement
• Eviction costs
• Pet damage
• Management fees
• Lease renewals

Our Guarantees: We provide up to $1,000 in eviction legal fee coverage and pet damage protection. Learn more about our guarantees on our Guarantees page.

8. Who Handles Evictions?

Although evictions are uncommon, it's important to understand who manages the legal process if one becomes necessary.

A full-service property manager should coordinate the eviction from start to finish, helping protect your investment while navigating the legal process.

Our Approach: If an eviction becomes necessary, we oversee the entire process on your behalf from beginning to end.

Beyond the Agreement

While a Property Management Agreement outlines the legal terms of your relationship, it can't measure what truly matters. It won't tell you whether your property manager communicates well, responds quickly, acts with integrity, or genuinely cares about protecting your investment.

Choosing a property management company isn't simply signing a contract. It's choosing a trusted partner who will care for one of your most valuable assets. Take the time to ask questions, compare your options, and choose a company that values transparency, professionalism, and long-term relationships as much as you do.

We hope this guide helps you make an informed decision. If you have questions about property management or would like to discuss your investment goals, we're always happy to help.