The Property Manager’s Year-End Countdown: Review Owner Contracts
The Cost of Outdated Contracts
You just finished cleaning up your Chart of Accounts and finally see your real costs. Now comes a tough question: do your owner contracts match reality, or are they stuck in the past, based on your business three years ago?
Many property managers assume contracts are fine as-is. The result is missed revenue, unclear responsibilities, and unexpected disputes. Updating contracts now ensures your agreements reflect your true costs, services, and pricing.
Why Owner Contract Review Matters
Updating contracts helps you:
Protect Your Profit Margins – Make sure commissions, markups, and fees cover your actual costs.
Set Clear Expectations – Avoid disputes by clarifying responsibilities for maintenance, cleaning, and other services.
Streamline Compliance – Add missing documents like W-9s so everything is ready for year-end reporting.
Your Week 4 Action Plan
This week’s goal is to review and update all owner contracts. Dedicate 1–3 hours depending on the number of owners.
Step 1: Review Your Contract Template (30–60 minutes)
Pull your current owner management agreement.
Ask: does it match your updated service model, pricing, and costs?
Look at key areas for updates: commission, maintenance markups, add-on or concierge fees, cleaning or supply reimbursements, and cancellation or term clauses.
Step 2: Create a Change Log (30–45 minutes)
Note every section that needs review or rewrite.
Flag what requires legal review versus operational adjustment.
Draft proposed changes and send them to your attorney. Don’t delay — contract updates can take weeks.
Step 3: Review Your Owner List (30–60 minutes)
Track each owner with columns for original contract date, expiration date, notes, and rollout category.
Categorize owners:
Green: Easy Win – communicates well, likely to accept updates.
Yellow: Hard to Reach – may need reminders.
Red: Problem Owner – needs careful handling or possible offboarding.
Step 4: Plan Rollout Timeline (30 minutes)
Decide if new contracts take effect Jan 1 or on each anniversary.
Avoid signing new clients under old terms if major changes are happening.
Make sure onboarding aligns with updated agreements.
Step 5: Add a Compliance Bonus (Pro Tip!)
Include a W-9 as the last page of updated contracts.
When owners sign, they submit their W-9 automatically — no extra follow-up needed.
The Payoff
By updating contracts now, you protect your revenue, avoid disputes, and set expectations clearly. Small time invested now saves headaches and preserves your profit margins in the long run.
This is just Week 4 of our 12-part Year-End Countdown for Property Managers. Stay tuned for Week 5 next week.