I am talking to one ‘Property management Company’ to look after my investment property. They will find tenant, collect and depositing rent, care for small maintenances and the likes.
I have come across one agency which would do all this for 10 % of rent. But there is a clause in the agreement that they will be owner of property on my behalf, rent will go to their account and (after 10 % deduction) will come to my account.
Clause reads, “*** Properties being the owner of property on ***** behalf will ……….”
Is this the usual practice? Is it safe to go ahead? Any comments ….
- Ben
Hi Ben,
property management agreements vary across differet states / provinces and are subject to state or provincial laws. Whereabouts is your property located?
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Microsoft - Which end of the stick do you want today?
Hi, DT;
Thanks for your reply.
The property in in Vaughan (Ontario). The clause in question, I have some reservation about is;
"... the owner hereby nominates, constitutes and appoints ABC to act as landlord in my place to institute all actions ..."
Can't the property be managed simply as 'Property manager' and not as 'Landlord' which literary means 'Owner'.
-Ben
That sounds logical - big property owners have property managers who act on their behalf .... better check with some others as well who provide a similar service ...
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Fido.
Location: Brampton, Ont, Canada
Posted on: 01-03-10 10:50:04
Quote:
Originally posted by benparsad
I am talking to one ‘Property management Company’ to look after my investment property. They will find tenant, collect and depositing rent, care for small maintenances and the likes.
I have come across one agency which would do all this for 10 % of rent. But there is a clause in the agreement that they will be owner of property on my behalf, rent will go to their account and (after 10 % deduction) will come to my account.
Clause reads, “*** Properties being the owner of property on ***** behalf will ……….”
Is this the usual practice? Is it safe to go ahead? Any comments ….
- Ben
Hi Ben
I dont know how big is your investment proprty so i can not comment.
But one thing i know if it is managable without using any third party then do it. it has lot of benifits, in terms of control on financial ground ( TAXES etc...) as well as power to fight your right when legal battle..
If it is huge and very hard to maintan by you then may be worth going to third party.
If possible for you to keep a person to manage your building by providing free accomodation that would be the best solution- but then again it depends how big your proprty...
Before sign any documents MAKE sure to check with good lawyer. Dont be hurry to take a decision
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
I am also looking for a property management company - I have a condo which I want to rent out.
Can you share the name of the companies which are good.
What was your experience with this company so far?
Quote:
Originally posted by benparsad
I am talking to one ‘Property management Company’ to look after my investment property. They will find tenant, collect and depositing rent, care for small maintenances and the likes.
I have come across one agency which would do all this for 10 % of rent. But there is a clause in the agreement that they will be owner of property on my behalf, rent will go to their account and (after 10 % deduction) will come to my account.
Clause reads, “*** Properties being the owner of property on ***** behalf will ……….”
Is this the usual practice? Is it safe to go ahead? Any comments ….
- Ben
