Toronto property management companies enter into management contracts with real property owners routinely. They have developed standard contract forms which they just modify a little and use for all their clients. These companies understand the need for a contract that contains all the provisions both sides consider important. They have gone through a few legal scrapes after having clients sign contracts they have not taken the time to fully understand, and are keen to avoid attending hearings at the Landlord and Tenant Board. This is why top Toronto property management companies make an effort to make their clients understand every aspect before having them sign over their properties for management.
Believing that people who make properly informed decisions before signing management contracts make better clients, Toronto condo property management companies offer the following tips for reviewing contracts:
- Ensure that the contract contains all the restrictions you want imposed regarding the renting out of the property. If you don’t like pets, or too much noise, or whatever, make sure the contract contains prohibitions.
- Make sure you agree with the provisions of the contract with respect to payment for services, including the rates, when to pay and the manner of payment. Make sure you understand what fees apply to specific services. If you have any doubts, ask for an explanation.
- It is normal to be prohibited from renting out the property yourself, or from entering into a contract with another property manager for the same property, but make sure you agree with all prohibitions – some may be needlessly restrictive.
- Make sure the management company is provided with enough powers to represent you for collecting rent, in disputes and in coordinating maintenance. If you want control over expenses, make sure there are provisions that cover that aspect.
- Pay attention to and make sure you agree with indemnification provisions which should state what the property managers should be responsible for, as well as your responsibilities especially in cases when tenants sue for damages.
- Make certain you agree with all provisions covering legal reasons for contract termination whether initiated by the property managers or yourself.
You don’t need anyone to teach you how to find a Toronto condo property management company, as there are plenty. But what is more important is to ensure the contract you sign contains all the provisions you see as essential.