Property Management Agreements

When you agree to manage a property on an owner's behalf, you and the owner settle a handful of things: what you'll be paid, for how long, and which of your companies is doing the managing. REDA records all of that on a Property Management Agreement. This article shows you how to create one, how to capture the fee terms so every check passes, how to walk the agreement from draft to signed to closed, and — most importantly — what REDA does automatically when you close it: it marks the property as being under your management. No prior REDA experience is assumed; every term is defined as we reach it.

What a Property Management Agreement is

A Property Management Agreement — REDA records it as a ticket, a short tracked record with its own status Path — is the agreement of record between you and the owner. The fee terms live on the agreement, not on the property. The property simply points back to the agreement once it's closed. Throughout this article we'll call it the PMA ticket on first mention, and "the agreement" after that — you think in terms of an agreement; REDA stores it as a ticket.

The agreement is always tied to a management deal. In REDA a deal is an Opportunity — REDA's single "deal" record — and for property management that deal is a Property Management opportunity: the pursuit of an owner's business. The agreement is the contract that closes that pursuit. As you move the agreement's status forward, REDA advances the deal's stage to match, and when you close the agreement it stamps the property. That three-way handshake — agreement status, deal stage, property stamps — is the heart of this article.

Before you start

An agreement can only attach to a qualifying deal. The deal must be a Property Management opportunity, or a closed-won Property Sale opportunity (a property you sold and now manage for the buyer). Pick anything else and REDA stops you:

The agreement's Property must also match the property on that deal:

So have the management deal (and the property it names) ready before you create the agreement.

On a Property Management deal, the owner's representative sits on the deal as its primary Contact Role of PM Client — the person on the owner's side you're contracting with. You don't set this on the agreement itself; it lives on the deal, and it's a useful sanity check that you're building the agreement against the right owner.

Creating the agreement

From the Tickets tab, click New, choose PMA (Property Management Agreement), and fill in the terms. The agreement is organized into a few groups of fields:

The agreement also carries an Escalation & Priority field (Low, Medium, or High) and a free-text Description for your own notes.

The management fee

The Management Fee Type is either Fixed or Rent Percentage:

• Fixed — a flat amount in Management Fee Fixed.
• Rent Percentage — a percentage in Management Fee %, and only for this type may you also set a Minimum Management Fee and Maximum Management Fee to floor and cap the amount.

Whichever type you pick, its matching amount is required:

And the minimum/maximum belongs to the percentage type alone. Set them on a fixed fee and REDA responds:

Placement and renewal fees

The Placement Fee (for finding and placing a tenant) and the Renewal Fee (for renewing one) each take a type of Fixed - One Time, Fixed - Per Year, or Rent Percentage, with the matching amount field. As with the management fee, the type you choose decides which amount is required:

Moving the agreement through its stages

The agreement moves along a Status Path: New → In Process → Contract Sent → Contract Signed → Closed. As you advance the status, REDA advances the management deal's stage to match:

Signing and documents

Before you can set Contract Signed or Closed, REDA needs to know when the agreement was signed. Fill in the Document Signed Date Time first, or you'll see:

The Document Signed Type is either Electronic (an e-signature is on file) or Paper. For a paper agreement, REDA insists the signed document is actually attached before you close, and it checks that a file really exists before you can flag Document Attached as Yes:

Closing is also a two-step gate: you cannot jump straight to Closed without signing first. Try, and REDA responds:

So the reliable path is always: sign (set the signed date, attach the paper document if any), set Contract Signed, then set Closed.

What closing does automatically

Closing the agreement is the moment the property becomes "under management." On the move to Closed, REDA:

From here, the property's Details tab shows the management link, and the day-to-day work described in Managing a Property Under a PM Agreement takes over.

Worked example: Meridian Court under 5% management

Meridian Properties signs a management agreement with owner Continental Holdings for the building Meridian Court. Here's the whole agreement, start to finish:

The New Ticket dialog with the PMA (Property Management Agreement) record type: the Agreement Details section carries the PM Company/Entity, Agreement Start and End Dates, and the Placement Fees block.

A PMA ticket's fee sections. Under Management Fees, the Management Fee Type is Rent Percentage with Management Fee % 8.00% (Minimum, Maximum, and the Fixed alternative are left blank); the separate Placement Fees and Renewal Fees sections each carry their own type-and-amount pairs.

A completed PMA ticket, T-0000000219 (Record Type PMA (Property Management Agreement)), with its Path advanced all the way to Closed — the stages before it, including Contract Signed, are ticked. It is tied to the Continental Plaza - 88 Harbour Road [ PM ] parent opportunity and the Continental Plaza - 88 Harbour Road property.

The managed property Continental Plaza - 88 Harbour Road after the agreement closed — the PM Info section shows the PM Agreement stamped (ticket T-0000000219), the PM Opportunity, and PM Stage Under Contract. PM Company/Entity stays blank until a PM company/entity is set on the deal.

Reference: statuses and fees

What each status requires and what it does:

The three fee blocks and their types:

Where to go next

1. Managing a Property Under a PM Agreement — what changes once the agreement is stamped, and the day-to-day work.
2. Service Requests — the intake record for anything a tenant or owner reports.
3. Work Orders — scheduling and billing the maintenance on a managed property.
4. Understanding Tickets — the engine behind every agreement status.

Frequently asked questions