Customized Management Agreement
Having a customized management agreement is the key to being scalable and profitable. You’ll never get there using a one-size-fits-all document drafted by someone else.
We used our state association standardized documents for 10 years and after starting our 3rd page of special stips (trying to address things missed in the standard agreement) we caved in, met with a great attorney and crafted an agreement that fit exactly how we wanted to do property management.
The good news is .. You Don’t Have To Hire Attorney and go through all that.
Because our agreement has been tweaked, revised and perfected for 25 years, and tested in the Georgia State, Appellate and Supreme courts, you can adopt ours, make the appropriate modifications to fit YOUR model, and have exactly what you need.
You must make the shift to a Customized Management Agreement as soon as you can.
Now, you have to start somewhere, and because we did property management really well for 35 years, avoiding all fair housing claims, had a pittance of litigation, made a ton of money and sold out to a Fortune 500 Company, our agreement would be a great way to get started, but you won’t manage exactly as we did and therefore shouldn’t use our agreement exactly as it is.
Our strategy is to provide you with a format to CREATE YOUR OWN AGREEMENT using ours as a starting point and YOUR PERSONAL MODEL for the customization. We’ll work hand-in-hand with you to adapt our agreement to your model. We’ll make it really easy, help you through decisions and you’ll end up with a killer agreement, highly profitable, saying exactly what you want it to say, and fitting your model exactly the way your model works. It will make your life so much easier and you’ll regret forever that you didn’t make the shift earlier. (We’ve posted many happy users/customers testimonies on this page who have adopted our forms).
Two final thoughts
Before you get started there are a couple of decisions you’ll need to make in the customizing process and the training videos we posted on this page will help shape those decisions. These videos are necessary to establish a framework for customizing your agreement.
Lastly, you’re not alone in this. We’ve added plenty of instructions and training notes in our material and we will personally help you through the process. So, read through the material, watch the videos and do yourself a big favor … Begin creating your own, customized management agreement today. Trust me, you’ll never regret it and you’ll never look back.
Before you begin considering a customized management agreement you might want to review these training videos if you haven't already watched them.
Crown turned to a customized PMA in 1990 after trying for 10 years to make our state association forms work. We struggled with having to twist what we wanted to do into a one-size-fits-all standard form, crafted by our state association forms committee. Clearly the forms committee is made up of the very best sales brokers and trainers in Georgia, but few of them embrace property management or have demonstrated being highly profitable at it. Most despise it and would rather focus on the big money of real estate sales. Once we reached page three of special stips (trying to address all the things they missed) we caved in, and with the help of attorney Monica Gilroy, crafted a document that has been tweaked, refined and perfected for the last 25 years. We’ve had this document on a web site for colleagues to download and have dozens of managers using it .. or, Their Modification and Personalization Of It.
Note: When Realogy (the largest real estate company in the world) bought us out, we expected their lawyers to carve up our management agreement and put in their own language. They did not. They tweaked it just a little and adopted about 95% of what we’ve been using (and many of our students have been using) for the past 10 years, a testimony to the strength of our documents.
If you’ve watched the video posted on this page (Preventing Document Creep) you know that for 25 years we resisted long PMA’s and use Housekeeping Documents to avoid a 10 page, legal size paper (type size 9) document. We keep it to five pages, letter size (and type size 12) so the owner isn’t intimidated by a long and tedious document. Housekeeping documents give you a chance to say everything you want to say, without adding pounds to the basic management agreement. Some topics need plenty of details, but those details don’t need to be in the management document itself. Housekeeping documents have the same weight as the PMA and give us plenty of space to flesh out the details of the topic. We use every housekeeping document with every management agreement, every time. Like a lead paint disclosure and sellers disclosure statement they are NOT exhibits, just … housekeeping documents.
Ancillary documents are not needed unless the circumstances require it. Again, there is no reason to address multiple owners, entity ownership, hot tubs, home warranty rules, HOA’s or pool details in the basic agreement because not every property has all these speed bumps. However, when you need it, you need it, and special stips just don’t give you enough space to articulate all the details you need to cover on any one topic. Also, special stips are typically made up on-the-fly and don’t cover enough of the details. Having a document, fully fleshed out in advance, ready to execute, gives you time (and attorney review) to say it exactly how you want to, without the pressure of typing up a special stip on the spot.
Here is a full description of the Ancillary Documents we developed over the years.