3 Key Benefits of a Property Management Contract

property management contract

As consumers, we’re used to seeing ‘no contract’ as a benefit. Many of us even have our own horror stories about service contracts we’ve signed in the past — whether that’s for cell phone service, massage or beauty services, joining a gym, or simply getting water delivered to your office. Believe it or not, there are certainly still situations in which a contract is not only helpful, but necessary. It’s important to think critically about this concept when you’re making purchasing decisions — the first question you need to ask yourself is who is truly benefiting from the lack of contract, the consumer or the vendor?

When it comes to big purchases and big decisions, especially in the case of investments, you should take every precaution to ensure you’re protected. Your home is arguably one of the most important investments you’ll make, and it’s always in your best interest to protect that investment as well as you can. If you decide to work with a property management company and don’t sign a management contract, how can you really know that they’ll live up to your expectations and fulfill their duties and commitments? Before you make that decision, I want to tell you about three key benefits of entering into a contact with your property management company.


There’s a strange phenomenon between some property management companies that operate in Minnesota where they charge rental property owners the first month’s rent when they begin managing a new property as a placement fee. That’s not typical for the industry. Without a contract, especially if you’re paying up-front fees, what’s the company’s incentive to truly take care of your property? If you don’t sign a mutual agreement, you’re unprotected and so is your investment. Just like any big decision you make, especially one that relies on the promise of future services, it’s good business to get it in writing. You can hold your service provider accountable for the promises they make when you have them in writing, which leads me to the second benefit.


Some property management companies run their sales process like politicians run their campaigns — they’ll tell you what you want to hear, but there’s no actual obligation to deliver. When you enter into a contract, the benefits and services promised are guaranteed in writing. That allows the property owner to hold their management company accountable for what they said they’d do. If you don’t sign an agreement, it doesn’t matter what was promised to you. If it’s not in writing, it doesn’t count — plain and simple.


Deciding to rent out your property can be confusing, especially if it’s your first time. There are a lot of considerations that need to be made and some that aren’t immediately apparent. Your management contract should function as a guide through the process — what concerns can arise and how they’ll be dealt with. This will also help you decide what maintenance you want your renters to be in charge of, like mowing the lawn or removing snow, and what you want to take care of yourself or have your management company handle, like blowing out your sprinkler system or changing your furnace filter. When these considerations are put in writing, there’s no room for confusion.

While not being locked into a contract may be a benefit in some situations, it’s irresponsible to not sign one with  your property management company. Especially if you’re paying them up front costs for the promise of future services. In many cases, you’re not going to encounter trouble, but is it really worth the risk of being unprotected in the event something goes wrong? Personally, I’d rather be protected.

If you want to hear more about our property management services, give me a call and let’s chat: 952-831-5300!

How to Maximize Your Rental Property’s Curb Appeal


It’s common knowledge that first impressions are important, and that you never get a second chance to make it a great one. This fact holds true for your rental property as well. When prospective tenants first arrive at your property, many will have already made a decision about whether or not they like it by the time the get to the front door. While having a warm, welcoming interior is a must, your property must also have a certain degree of curb appeal to inspire potential renters to get inside in the first place. So, how do you up your curb appeal? Here are a few easy steps.

Clean Up Your Act

A clean rental property is a happy rental property! When considering your curb appeal, take a the following into consideration: Is your property in need of a new coat of paint? Do the windows need washing? Is the lawn trimmed to a level that makes your property look lived in? As simple as they are, these factors can mean the difference between a tenant walking away or putting down a deposit there and then.

It’s OK to Be Garden Variety, Sometimes

Not all of us have green thumbs, but if you happened to be blessed with the talent, having a garden at your rental property will make it look beautiful to future renters and will also add value to the property itself. Bright flowers, an open garden plan and a well maintained lawn can all go a long way in ensuring those viewing your home can see themselves living there. If you’re less inclined to garden, simple hanging plants or even some cool new landscaping can also improve the perception of your property right off the bat.

Don’t Keep Up with the Joneses

While you can make the exterior of your own property stand out with just a few quick improvements, it’s more difficult when it’s your neighbor’s property that stands out for the wrong reasons. Sometimes you’ll have a neighbor that finds stray auto parts and yard gnomes to be the cutting edge in exterior design. There’s not a lot you can do in the way of improving their taste in decor, but you can find a way to help detract the attention of your prospective tenant from the neighbor’s home to your own. If it’s truly terrible, you may want to consider erecting a partition or fence to help block the view from your yard.

The Rental Property Golden Rule

On the same ticket as ‘treat others how you’d like to be treated’ — make your rental property a place that you’d enjoy renting yourself. Remember, the same reason this property seemed so appealing you in the first place could be the same reason tenants want to live in it. When trying to increase your property’s curb appeal, think of what would make it more enticing to you. A garden chair swing, hammock or built in barbecue could add that extra allure to prospective renters.

Deciding how much time and money you spend on your property’s curb appeal is up to you, but my experience in residential property management has taught me that the more time and care you put into the exterior of your rental home, the more appealing your property is likely to be. If you’re wondering if updating your landscaping or sprucing up your paint job would be helpful for your rental, I’m here to help — leave a note in the comments or give me a call at 952-831-5300.

Love our blog content? Subscribe to our digital magazine for even more information and fun facts!


How Do You Determine the Value of Your Rental Property?

determine the value of your rental property

When renting a property, deciding how much to charge for rent can be deceptively difficult. Sure, charging more than surrounding properties might pay off if you own the most desirable property in the neighborhood, but this can drive potential tenants away. Remember, while you’re looking to turn the most profit, tenants are looking for the best property, at the best price. The decision to rent out your home is a business decision at its core. As with any business, your pricing strategy affects everything. If it’s priced too low, you’re not getting the maximum ROI, and it can negatively affect the perception of your property to prospective tenants. If it’s priced too high, you run the risk of it sitting vacant for an extended period of time, effectively preventing you from making a profit at all. Finding a balance that’s fair to owners and to tenants may be trying, but there are a few key points to consider that will help you in the right direction. Whether or not you’re working with a property management company, it’s important to know how pricing works so you fully understand what your potential return will be.

Free rental property analysis

Location, location, location.

One of the most important factors to consider is where the property is located. Look at surrounding properties to see what kind of rent they are charging. Try to keep track of which properties in your area are being rented quickly and which are sitting dormant, and try to figure out what differentiates them. Of course, the desirability of a property is affected by its proximity to local amenities, such as schools, transportation, local attractions, and hospitals. The closer a property to these facilities, the more youcan justify adding to a rent. This is one of the key benefits of working with a property management company like Simply Residential Property Management. We know the market and are always up to date on the latest trends in the industry because that’s our job. Our clients don’t worry about all the leg work, we find the information and explain their options to them.

Seeing is believing.

A good view can greatly increase the value of a property. Looking out over a garden or field, a property will feel more enticing to prospective tenants. Meanwhile, a property that faces a parking lot or a highway will sometimes struggle to justify a higher rent.

Extra, extra!

When considering how much to charge for rent, extra storage space, a washer and dryer in the unit, central air conditioning, a fenced in yard, balconies, being pet friendly and off-street parking can all help justify adding a few extra dollars. Prospective tenants will likely have seen several properties, and many will be willing to pay that little bit extra for the added benefits your property has to offer.

Try to find a balance.

If your listing is over 21 days old, despite regular viewings, then it’s time to consider if you have been asking for too much. While it’s tempting to leave a high rent rating on a property in the hope someone will snap it up, tenants are more likely to continue looking than settle for somewhere they feel is overpriced. Likewise, if you set the rent too low just to attract potential tenants, you’ll feel the pinch further down the line when you aren’t experience the greatest possible return. Also, it could negatively alter the perception of your property, or attract tenants that aren’t the best quality. Working with a property management company in this respect is also a huge benefit. They have the resources to do more marketing and thoroughly screen renters before they’re offered a lease.

Know your market.

There are very few properties on earth that will stay the same value forever. When you set your rent, remember that this will be liable to change according to the current property demand. If you leave the rent at a higher price during a dip in the market, then your property will be seen as overpriced in comparison to those around it. If you keep your rent at the same price when everyone around you is raising theirs, you could be missing out on the chance to increase your overall yield. There is no such thing as a set-it-and-forget-it rental price.

Remember what’s important.

The most important thing to remember is that each decision you make regarding your property is first and foremost a business decision. Your property is an investment, and so turning a profit is the most important aspect of your role as landlord. Many property owners, especially those with large mortgages or construction loans, do not see an actual profit until they sell their property or until they have owned the property long term. If the property is not helping you pay down your mortgage, reap tax benefits, or if it isn’t putting money directly in your pocket, you need to reassess the amount you charge as a rent or potentially refinance your home. This is yet another instance where working with a property management company is beneficial. Think of that relationship as a business partnership — at Simpy Residential we’re connected to many realtors, financial advisors, insurance agents, and even lawyers. When our clients need advice or help, we have a strong network to refer them to so they know they’re working with someone they can trust.

If you’re sick of self managing, or if your property management company isn’t doing everything they can to increase your ROI, it’s time to think about making a change. It all starts with the basics — understanding what your property is worth and how much a property management contract will cost you over time. If you want to take that first step, get your free rental analysis today!