What to Look for in a Property Management Contract: A Guide for Chicago and Cincinnati Owners
- Jason Rowland
- May 15
- 2 min read
Updated: May 16
Signing a property management agreement is a significant commitment. The contract defines your relationship with your manager, outlines what services you're getting, and determines what happens when things go wrong. Before you sign, here is what every property owner in Chicago and Cincinnati should look for — and watch out for.
Management fee structure
Most property management agreements charge a percentage of monthly collected rent, typically ranging from 8% to 12% in the Chicago and Cincinnati markets. Verify whether the fee is based on collected rent or scheduled rent — you should only pay when rent is actually collected. Watch for additional fees that can add up: lease renewal fees, vacancy fees, inspection fees, and maintenance coordination markups.
Scope of services
The contract should specifically enumerate every service included: tenant marketing, screening, lease execution, rent collection, maintenance coordination, inspections, financial reporting, and lease renewals. Anything not listed is typically not included. If a service is important to you, get it in writing before signing.
Maintenance authority and spending limits
Most contracts give the property manager authority to approve repairs up to a set dollar amount without owner approval — commonly $200 to $500. Understand this threshold clearly. Above that amount, the manager should seek your approval unless it is a genuine emergency. Look for clarity on how emergency repairs are defined and handled.
Contract term and termination clauses
Property management contracts typically run for one year with automatic renewal. Review the termination clause carefully — how much notice is required from each party, and is there an early termination penalty? A reputable manager should allow termination for cause without penalty. Be wary of contracts that lock you in for multiple years with steep exit fees.
Owner reporting and disbursement
You should receive monthly statements showing all income collected and all expenses paid, with receipts for maintenance work. Funds should be disbursed to you on a consistent monthly schedule. Your manager should maintain a separate trust account for tenant security deposits in compliance with Illinois or Ohio law.
What Mane Properties puts in our agreements
At Mane Properties, we believe in transparent agreements with no hidden fees and clear service definitions. We serve property owners in Chicago and Cincinnati with straightforward contracts built on trust. Contact us to review our management agreement and ask us anything — we have nothing to hide.
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Ready to work with Mane Properties?
Contact Mane Properties for a free property management consultation in Chicago or Cincinnati. You can also explore our full range of services or learn more about our HOA management and owner services. Call us at 312.927.1942.
Legal disclaimer
The information provided in this article is for general informational purposes only and does not constitute legal, financial, or professional advice. Laws governing landlord-tenant relationships and property management vary by jurisdiction and are subject to change. Consult a licensed attorney in your state for advice specific to your situation.
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