- What is a management contract?
- What does the management contract contain?
- How much does a rental management mandate cost?
Any owner of a real estate rented can delegate the rental management of his property to a professional. How? Thanks to the rental management mandate contract. Explanation.
What is a management contract?
The management contract is a contract by which the owner of a real estate, called the principal, delegates to a professional, called the agent, the management of its rental property. This contract gives the agent the power to perform on behalf of the principal all acts related to the rental management of the property. The professional in question, the agent, may be a property administrator, a notary, a trustee or, most commonly, a real estate agency.
What do we mean by rental management? This ise the daily management of a rented property namely the monthly collection of rents, the annual adjustment of charges, the revision of rents, the execution of repair work, even the search for potential tenants, etc.
What does the management contract contain?
The management mandate contract specifies the guidelines for the rental management of the property: the operations and management acts that may be performed by the agent, and the applicable limits. The contract must be written, signed by both parties and the signature preceded by the handwritten mention "read and approved".
This contract usually contains
- the identity of both parties
- the designation of the real estate (s) available for rent
- agent's duties and authorized acts
- the obligations of the agent: obligation of information, expertise and advice
- the fees, commissions and possible additional costs of the agent
- term of office and conditions
- confidentiality clauses
- the attribution of competences in case of dispute or litigation
How much does a rental management mandate cost?
The rental management service is a paid service. We talk about rental management fees. In principle, the fees of real estate professionals vary, for this service, between 5 and 10% VAT of the sums collected by the rental of the property (in other words, on rents).