For the first 10 years of our management business we adopted our state association standardized forms. After 10 years of trying to fit our model into their model we gave up and with the help of a great lawyer developed customized agreements that matched perfectly how we wanted to manage. This conversation IS NOT a condemnation of standard forms because there are times you need them. Instead, it’s an intelligent analysis of their shortcomings and how they can constrict your business, make property management harder and less profitable.
This conversation applies to both the management agreement and the lease, but we will focus most of the conversation on the management agreement. These are 30,000 foot level principles to help shape your thinking about property management agreements. They are intended to lay a good foundation for your considering whether or not you should move from standardized forms to customized forms.