Why are contracts so important for HMO Property Management?
Posted on 1st November 2022 at 13:34
It's important to understand the technical definition of a contract: "A written or spoken agreement, especially one concerning employment, sales, or tenancy, that is intended to be enforceable by law".
The key aspects to consider within the definition are "agreement" and "enforceable by law". With a contract the people/parties involved need to come to a formal agreement, this agreement will then be written up on a piece of paper to form a contract. For this contract to then be eligible the parties involved will need to sign, date and print their name. This is then a representation to show that everybody has agreed to the terms of the contract, throughout the duration of the contract all of the terms should be followed. This is so important with HMO property management, as this is a long term agreement that involves a lot of money and responsibility.
It's key that everything is outlined at the beginning to ensure each party is clear on what the agreement is, below are three main reasons why HMO Property management contracts are so important.
1. They Provide Clarity
Clarity is the quality of being clear and easy to understand, here at TK Lifestyle Properties we like to make landlords lives in property simple, that is why it's important to make things clear at the start of the relationship. A contract governs how the agreement has been structured and the expected responsibilities for each person/party involved. Any questions about the agreement can and should be answered within the contract, once signed everybody should know what they've signed up for. The contract is legally binding which means that the agreement should be followed and if it's not followed there will be consequences.
2. There is a Legal Obligation for Parties Involved
An obligation is a moral or legal duty to perform or not perform some action. In HMO Property management there are a lot of people that don't do it correctly, whilst doing this they can devalue your investment and not be held accountable if there isn't a legal obligation. This step gives you the extra piece of mind knowing that your investment is secure and being controlled as you wish. If there's a breach in the contract then in the eyes of the law you should be able to regain control of your property without any complications.
3. They Provide a Physical Record
At the very core, contracts are relationships. With our HMO Property Management service that we provide to make your lifestyle in property as simple as possible, we aim to make this last for years. The contract is a visual representation of the relationship that we hold. Throughout our relationship we have a physical record that we file away safely. This is a trail that holds both sides accountable for the terms we set at the beginning of the relationship. Those are the 3 main reasons why a contract is so important in HMO Property management. We understand the importance of making sure your property is taken care of professionally, so if you'd like to know more about what we can offer you reach out to us via email, phone or fill in the contact form.
If you've got a HMO and are looking for guaranteed rent or even have any questions related to HMOs, feel free to go to the Landlord Management Services page on our website (click HERE), or contact us on email.
Tagged as: Advice for landlords, HMO, Property Management
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