Clauses to read closely
- Term and renewal: one year, month to month, automatic renewal?
- Ending the contract: notice period, cancellation fee, and any fee if you keep a tenant they placed.
- Fees: every fee, when it's charged, and whether the monthly fee is on rent due or rent collected.
- Repairs: the dollar limit they can spend without asking you, markups, and who chooses vendors.
- Money: rent and deposits held in a broker trust account; when you are paid each month.
- Reporting: monthly statements, year-end summaries, owner portal.
- Insurance: their liability coverage, and what they require from you.
- Hand-over: what you get back (keys, deposits, records) when the contract ends.
If anything is unclear, ask for it in writing or have a lawyer review the contract before you sign.
Common questions
How long are property management contracts?
Often one year that renews automatically, though some are month to month. Look for a fair notice period (often 30 days) and any cancellation or 'tenant placed by us' fee.
Who holds the security deposit?
Usually the manager holds it in a broker trust account and returns it under California's deposit rules. The contract should say where deposits and rent are held and how they are handed over if you end the agreement.
Sources
Written by The Property Management Directory team. Last checked October 2026.