Hi,…
Hi,
I have questions about a contract with an Ohio property management company, I would love to get answers from your experience:
There is a clause that if a tenant they put into the property in the future wants to buy the property, no matter if the contract with them expired, even after a few years, then they deserve a 1 percent commission on the sale.
Is this section standard? Or should you try to delineate it at some point or flip it?
Additional clause If they have rented the property for less than 2 months and I want to terminate a contract with them I have a fine of one month rent. And only after 7 months there is no such exit penalty. Is this a standard clause?
3. There is a clause regarding insurance, the owner undertakes to take out insurance worth $ 300,000 in case something happens to the property. I did not find out how much it should cost yet in front of the insurance company. Is it standard?
I would be happy to hear if this is acceptable or not to know if it is worth discussing the sections or if there is no point
Thanks in advance for the answers, and if you have any recommendations for management companies in Columbus Ohio I would love to hear
Thanks guys, I will try to flip sections 1,2 you helped me a lot 🙂
Sections 1 and 2 are not standard and can be bargained for, section 3 is very acceptable (even $ 300 it is relatively cheap usually ask for a million) but I do not work in this market and they may be standard there, you may want to check with other management companies in the market.
Article 1 Absolutely not
Article 3 is very acceptable
Section 2, exists in some companies, in my opinion it is not a deal breaker ..
And again, these would mean that you have to spend for these processes
The solution: not to own a property and thus depend on a third party overseas. There are other ways
Sections 1 and 2 flip fast but I would tell them -
It's good that they did not ask for ownership of your property as well -
Article 3 makes sense -
It comes to insure you in case something happens to the tenant.
big time,
I would not work with these robbers!
Succeed
Hi Sharon,
Not acceptable at all, stay away.
Where is the property?
Who is your management company?
Regarding section 2, if you are not paying a brokerage fee on the tenant’s income in the first place then the section sounds logical and fair. I would not sign the first section
The first section is also really not acceptable!
I would stay away from a company that gives an exit penalty, apparently they have something to hide