A management agreement can give another company significant control over an owner’s property, money and tenant relationship. These ten questions identify the clauses worth checking before signing.
The percentage is not the contract
A lower management percentage can become more expensive once leasing, inspections, maintenance coordination and administration are added. Compare the complete annual structure.
1. Use a verbal understanding or a written management agreement? Written agreement. Authority, fees, expenses and termination should not depend on memory.
2. Compare the headline percentage or total annual cost? Total annual cost. Include leasing, inspections, administration and other separately triggered charges.
3. Give the manager unlimited repair authority? No. Set a spending threshold and a separate process for genuine emergencies.
4. Accept one maintenance total or request underlying invoices? Request invoice transparency. You should know what the contractor charged and what the manager added.
5. Assume tenant sourcing is included? Never assume it. Leasing or brokerage can be priced separately from ongoing management.
6. Assume every management contract has the same cancellation period? No. Termination depends on the actual agreement rather than one universal Dubai notice period.
7. Give the company broad authority without checking its scope? No. Confirm exactly which actions the manager is authorized to perform on your behalf.
8. Leave reporting vague or define it? Define it. Agree how rent, expenses, maintenance and owner balances will appear in regular statements.
9. Let the manager add fees whenever something unusual happens? No. Additional charges should have clear triggers and calculation methods in the agreement.
10. End management with just a final payment or require a handover? Require a handover. Keys, tenancy documents, deposits, financial records, maintenance history and active issues should all be reconciled.
Quick takeaway
- Compare total management cost, not the headline percentage.
- Set a clear maintenance approval threshold.
- Do not assume leasing is included in management.
- Termination rules are contract-specific.
- Require a complete operational and financial handover when management ends.
Choosing a property management company?
Compare Dubai property management companies, their fees, service scope, maintenance rules and contract terms before signing.
