State Specific Question About: ARKANSAS (AR)

Hi, I have received copies of contracts from a couple of property management agencies. The contracts really suck for the property owner. They basically say that I have to pay them half months rent the first month, and 10% after that. Plus they are in charge of decorating and keeping up the place at my expense but at their discretion (there are limits on cost but the contract states the cost of one item rather than one project). Plus they are going to charge me for bookkeeping. On top of all that, if they do anything wrong, they aren't responsible. Here’s what it says:

WAIVER: Owner agrees to waive all rights of action of any type against Managing Agent for damages caused or allegedly caused by Managing Agent, it’s employees, subcontractors, or any other party acting on it’s behalf.

To me it sounds like they want to take my money and if they or someone they hire does a crummy job I’m just SOL. Is this normal for property management agencies? I need one, but their contracts would make me feel much less secure. At this point, I’d like to pay someone to fill the vacancy and continue to manage long distance.

My property is located in Hot Springs AR if anyone could refer me to either a good PM agency, or a service that can find a tenant, I’d appreciate it. I have called the NARPM and IREM people listed on those web sites, but either they haven’t returned my calls, or work for companies that own and manage their own properties. Any advice, besides “sell it” would also be appreciated. I did a search and have read posts related to PM. Thanks.

Keep trying. I have found some property mgmt. people are not very good. I only give them 30 days and see how things go with renting a place.

One owner said she had real good tenants for me. Their nephews were really nice.

Mac is in Hot Springs, and she is a Realtor. She works out of Meyers Realty, which is also in Hot Springs.

The clause you have problem with is COMMON and any NARPM and IREM member will have it in their contract. Any PM worth dealing with will NOT remove it.

You are looking for a flunky - not a professional property manager which is why you object to their contract wording...I ONLY work for owners whose property I can control as far as decoration, etc. to keep it competitive and attractive to prospective residents.

have to agree with Wallace.. Complete control.

While what we do is different (I only work with one investment group) I must have control completely, including decoration.

They thought it odd at first. However, I was able to take a run down 1/3 empty 48 unit community and make it 4 star, 100% occupied by qualified tenants and have a standing waiting list in under 4 months.. Why? Because I had COMPLETE control.

While many owners have good ideas and intentions, many also lack the training and dedication that a true property manager has.. While I will intently listen to suggestions and ideas from my investment group, if I know they are off base, I need the flexibility to do it MY way, because I KNOW what works and what doesn't.

A professional in any other field will expect the same control over what s/he is charged with.

Sean

As a side note, this is the only reason I've ever thought about getting a RE license: to open my own property management company. I know of one... that's right... one PM I would trust with my places. But she is overloaded and will not take on new properties.

On the other hand, I drive by house after house that is empty and I see the same bad PM companies not doing their job. I KNOW I can do a better job.

Kathy, I just re-read my response... I did not mean that YOU were an idiot! I was just thinking about some of the slumlords in Little Rock that I've dealt with.

Quackers, That's OK. I decided that you didn't mean me, but everone else (LOL)!

Wallace/Sean: The control thing I understand (however never personally would put up with)...but you offer NO comment about the WAIVER. How, in any way is this justifiable? These guys look like crooks.

WAIVER: Owner agrees to waive all rights of action of any type against Managing Agent for damages caused or allegedly caused by Managing Agent, it’s employees, subcontractors, or any other party acting on it’s behalf.

This is in my management agreement and is taken w4w from Professional Publishing mgmt agreement form.

I also have an arbitration clause and wording that if property owner/client files a complaint against me with licensing/Realtor, etc., and the complaint is unfounded, they pay my attorney fees.

A. Indemnify and hold AGENT harmless from any and all costs, expenses, attorney fees, and damages from, or arising out of, the management of the property by AGENT, or the performance, non-performance, or exercise of any of the duties, obligations, powers, or authorities granted in this Agreement, except where the damage is legally due to the negligent or intentional misconduct of the AGENT.

Wallace: There is a SIGNIFICANT difference between the waiver cited by the original poster and the one you use.

"...except where the damage is legally due to the negligent or intentional misconduct of the AGENT."

Absent that wording, the assessment of "crooks" is supported.

SDlandlord,