State Specific Question About: IDAHO (ID)

An investment management firm that can't draft a rental agreement?

Sure glad you're not managing my properties.

Ted: Because there is often benefit in pointing out odd issues with what people have requested. The other day, when someone wanted an agreement to get a 50% cut of ONGOING monthly rent just for referring a Sec-8 tenant, I think it makes good sense to call them on that request and see what is really going on -- because, well, that's a weird request.

Sometimes pointing out that a request is "odd" can help the person realize that the are doing something differently than they should.

That being said, in THIS case, I think it was just unclear what they wanted, at first. It seemed odd for a PM company to ask for a rental agreement (which I think people assumed they meant in the beginning). Now we see that they wanted something different than that -- they want to do a short-term management thing and then pass it off to the regular LL. Even for a PM company, that is a little different -- but could make sense still.

So, nothing wrong with pointing out "odd" requests -- especially when they lead to either more information that makes it less "odd" -- or makes them realize that they should do something differently.

Maybe Wallace (or some other PM) will have something for this person. Or a better recommendation on how to handle it.

- John...

Whats expected from an investment management firm, when you pay them? What should you expect them to do for your money?

I would expect expertise in not only "having" a rental agreement, but knowledge, ability & sophistication in the ability to draft agreements from scratch and to tailor them to special circumstances, and to get them right. They ought to be writing answers to questions about agreements, rather than asking for copies of standard ones for some circumstances.

That's what I would expect. Am I wrong?

I apologize for my cranky friends.

I don't see the name "property manager" in your title.

I also think it's wise to ask pros for advice.

I'll assume you are helping someone move money or protect an asset.

Need more info - commercial? retail? single family home? multi apt?

Start with a search for your local LL or apt association. This site has a GREAT book called the Landlord Kit - a book of forms.

Most online or (ugh) store versions are generic to the point of useless. Even lawyer leases tend to be boilerplate and leave out major points.

Be sure to add an Early Lease Termination Fee and 30 or 60 day notice required to terminate.

I teach that the written move in inspection, signed by the tenant, with literally 100 pictures to back it up - is MORE IMPORTANT than any lease. When push comes to shove, tenants don't argue about the unpaid rent and late fees, they immediately start barking about how bad the place was at move in and how the LL never fixed anything.

A good lease shows names, signatures, rent, deposit, late fees, repair costs, Early Lease Termination Fee, spells out WHO is responsible for WHAT such as utilities, trash, grass, stopped toilets, leaks, parking....

Not complicated, but think of all the things that could go wrong and spell out the solution YOUR CLIENT wants.

Brad: To be fair, they might not have PM in their title, but I actually Googled them -- and they certainly ARE a property management company as Moshe had implied/assumed. Just to note it.

- John...

And, again, I think some people are missing the point of what they are asking for. They are NOT asking for a sample lease or rental agreement. So all of this talk about a clause for early lease termination or taking pictures or anything else related to such an agreement just means that you've missed what they were actually asking for. She didn't ask for a sample lease or rental agreement. She is looking for a very specific (short-term) property management agreement.

My guess is that they have plenty of rental agreements already -- they are a property management and leasing company.

- John...

The attorney for either the owner or at least the one for the PM company should provide what is necessary here. A manager who is not an attorney (I'm presuming) shouldn't be looking one up on the internet.

This is not do-it-yourself stuff, folks.

One word can mean the difference between a win and a very expensive loss in a lawsuit.

Melodie, this is not a matter of being "judgmental". If I said people from Idaho don't know what they are doing, that would be judgmental. This is merely a business reality and those who ignore it pay the price sooner or later.

If you are not an attorney, then you are NOT qualified to draft another document. Period. If you are not sure, you need to run your document by your real estate attorney for this particular transaction, since the facts and terms differ from your previous deals for which you do have properly vetted forms, it appears.

Landlords do it all the time, but when they are sued, they often lose.

Melodie, I believe you came to this site for real assistance. And I hope you didn't come just for something free that could cost you greatly. You have received many words of "hard-learned" wisdom above. A big welcome to the site if you are new.

I have previously owned a prop mgmt co in North Idaho. This is not a trick question. In our firm we did have an animal just like this. The owner wanted us to list show screen and rent up a tenant then turn it over the owner. We had charged 50% of one months rent as a fee. It worked very well. owner had final approval as to the occupant. We did not do it often but it was a good service when needed. We called it find a tenant. Not so crazy. Just use a regular agreement. It is no different than having to turn a property over when a home owner want to release a co from mgmt.