Lecture Notes: Importance of Property Management Agreement (PMA)

Introduction

• Mark from Grace Management received an email request for his Property Management Agreement (PMA).
• Emphasizes that while PMA is important, it is not the most crucial aspect of property management relationships.

Key Points on PMA Importance

• PMA Similarity:
  • Most PMAs are roughly 90% identical, written by attorneys to cover legal aspects.
  • Differences may lie in fee structures, but not in the essence of service.
• **Limitations of PMA: **
  • PMA cannot demonstrate honesty, response time, work ethic, or care level.
  • Choosing a property manager based solely on PMA is illogical.

Analogy

• Compares choosing a property manager based on PMA to a bride choosing a husband based on marriage contracts.
• Emphasized as an outdated and ineffective method.

Recommendations for Property Managers

• Transparency:
  • Suggests posting PMA on company websites for transparency.
  • Include educational content on what to look for in PMAs.

Dealing with Existing Owner Clients

• Handling Disputes:
  • Avoid using PMA to "win" arguments with owners.
  • Explain practices rather than pointing to PMA unless unavoidable.
  • PMA is a legal document for court usage, not day-to-day resolution.

Example of Tenant Care

• CredHub Services:
  • Credit reporting for tenants to increase attractiveness and improve collections.
  • Mandatory in California for reporting on-time payments.
  • CredHub offers automated services for reporting tenant payments.

Final Recommendations

• Strategy and Action Groups:
  • Mention of strategy and action groups for property managers to improve pricing and growth strategies.
• Conclusion:
  • Encouragement to focus on broader strategies beyond PMA.
  • Ending with a wish for success to the audience.

Resources

• Visit pmbbuild.com for more details on strategy groups and PMA resources.