Evil Property Management Terms

Property managers are not evil.  But their terms sure are.

Their way or the highway

Property management firms are known for strictly only using their management agreements.  For good reasons since firms manage hundreds of units it helps to keep everybody on similar terms.

Burbz Take:  Management agreements should always be used.  We prefer co-management agreements not to be evil but instead, well, fair.

Year of commitment

All management agreements operate on a one-year duration.  No test trial.  Blind faith their sales person keeps their word on quality of service.

Burbz Take:  Co-Management is month-to-month agreements.

Evil termination fees

Management Agreements typically state the firm is owed 100% of their remaining dues.  Resulting in the firm still earning their full year’s income no matter when you fire them.   If you wish to terminate them without paying a fee, you must provide a 60-day notice exactly at the 10-month mark.  Or else the agreement automatically renews for another year.

Burbz Take:  Co-Management has a one-month notice and a one-month termination fee.  If you aren’t happy with your co-manager, you should be able to find a better co-manager.

Surprise sales commission?!

Did you know when the rental property is sold the property management firm earns a sales commission?  Even if they were not involved in the sale!

Landlords have had to pay two sales commissions because of this evil evil evil clause.

Burbz Take:  Co-Management has no sales commission clause.  Any such commission would need to be handled in a separate sales agreement off Burbz.  Co-Managers can also be real estate agents as well, but this agreement is not included.

Suspiciously silent maintenance maximums

Sales pitch:  We have a maintenance maximum that allows our firm to fix all repairs as long as the cost is below the maximum.  This is to “not bother the landlord”. Reality pitch:  Vast majority of maintenance items cost below their $500 limit.  And they love to get away with sending their hourly handyman out for issues.  Costing landlords excessively for repairs that were not needed or overbilled.

Burbz Take:  Our platform allows landlords to receive alerts and notifications simultaneously as co-managers.  Keeping the landlord informed and allowing landlords to be involved as needed or desired.

Disguised maintenance invoices

Some management firms only provide a repair invoice on the management firm’s invoice.  Preventing the landlord from seeing the actual repair cost.

 

Burbz Take:  Co-Management transparency allows the landlords to see everything.  Everything.  Don’t overpay for repairs.  Especially when they are minor.  Landlords can directly pay contractor/repair bills, or reimburse their co-managers.

Interested in getting co-management proposals?

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Start today by filling out our Request For Proposal form.  Describe the services you seek assistance with.  The first step to managing differently and in control.