Property Management Agreement

What to Look for in a Kentucky Property Management Agreement

A Website Resource for Property Owners

Not all property management agreements are created equal. Before you sign, it's worth knowing what to look for — and what to walk away from. Here are the most common questions owners encounter, along with how we approach each one at Home Forward.

9 Questions to Ask Before Signing a Property Management Agreement

• Can I get out of this agreement?

  At some point you are going to want to walk away from your agreement. No matter if its to sell, move back in, transfer management, or for any reason you will want the agreement to be easy and inexpensive to terminate.

  How Home Forward handles it:

  All Home Forward management agreements can be terminated with 30 days notice for any reason with no penalties.

• Do I understand how I am going to be charged?

  The management fee is the largest fee you will likely pay with a management company but that does not mean it is the only fee you should pay attention to. A company could charge lease renewal fees, lease-up fees, inspection fees, maintenance coordination fees, and more. Always ask for a full fee schedule before signing anything.

  How Home Forward handles it:

  We provide an itemized breakdown of any fee upfront. No surprises on your monthly statement.

• How will maintenance be handled and charged?

  Does the PM use in-house or 3rd party vendors? Do they have a percentage based markup on 3rd party vendors? Do they charge an annual fee to coordinate maintenance?

  How Home Forward handles it:

  We handle 80% of all work requests using in-house maintenance that are highly qualified and competitively priced. For jobs that require a 3rd party vendor we charge a single flat fee per invoice for maintenance oversight. That way there is no question if we are hiring more expensive vendors to drive up the oversight fee.

• Does the contract have a leasing fee and do I pay every time the same resident renews?

  Leasing fees can range from half a month's rent to a full month or more. Some contracts also charge a new placement fee every time a tenant renews, even if you've had the same renter for years.

  How Home Forward handles it:

  Leasing fees are clearly stated and competitive, typically 50% of the first month’s rent. We also prioritize resident retention and do not charge you a fee for renewing the current resident.

• Do I have easy access to my financial information?

  If you can't log in and see your property's financials, work orders, and statements at any time, you're flying blind. A lack of transparency is a red flag — it often means the numbers aren't clean.

  How Home Forward handles it:

  You will receive a monthly reporting package and get 24/7 access to an owner portal where you can see real-time financials, maintenance history, lease details, and monthly statements. Your property, your information — always. When it is time to leave the contract all your information is easy to transfer.

• Does the contract automatically renew?

  Some agreements renew automatically for another full term unless you give written notice 60–90 days before the end date. Miss the window and you're locked in again, whether you like it or not.

  How Home Forward handles it:

  Our contract has a 30 day, no penalty termination, no matter the circumstances.

• Has this contract been reviewed by a local Kentucky attorney?

  Each county and/or city in Central Kentucky has its own laws and regulations surrounding the relationship between property owners, landlords and residents. You should make sure that the contract you are signing has been reviewed and vetted by a local attorney who deals with Landlord Tenant Law on a regular basis.

  How Home Forward handles it:

  Our property management agreement and all other contracts we use have been vetted by local counsel and we work with the premier landlord/tenant attorney in Central Kentucky.

• What is a reserve and when is it used?

  Managers may require owners to keep money in a reserve account to address repair needs. Watch out for contracts that give the manager full discretion over how funds are spent.

  How Home Forward handles it:

  We keep a reserve on hand to address small repairs so we don’t have to bother you, typically $500 depending on the age of the home. For items larger than the reserve we must get approval for that expense. You’ll know exactly what the reserve covers, and any expenditure from it is documented and visible in your owner portal.

• How does the agreement handle an eviction?

  Who hires the attorney? Who files the judgment? Who attends court? Who handles collecting on the resident if they leave owing a balance? Make sure you know what your manager will do for you in the event that this unfortunate situation arises.

  How Home Forward handles it:

  Our agreement states that we handle this entire process for you. It also states that if your resident has not served at least 3/4 of their lease then we will cover your court costs up to $1000.

Ready to see our agreement for yourself?

We're happy to walk you through every line — no pressure, no hidden terms. Reach out to schedule a conversation.