Hiring the right Los Angeles Property Manager starts with signing the right agreement. In Los Angeles, where local ordinances and California state laws add complexity, your management contract is more than paperwork—it’s a risk shield and a roadmap for how your investment will be protected.
TGN Property Management helps Los Angeles owners understand the fine print so there are no surprises later.Below, we break down the most important contract terms and the termination clause you should expect when hiring a property manager in Los Angeles.
Core Contract Terms to Review Before You Sign
A solid property management agreement should be clear, specific, and easy to audit. Our Los Angeles Property Management company recommends you focus on these essentials:
- Agreement length and renewal
- How long is the term (e.g., month-to-month, 12 months)?
- Is there an automatic renewal? If so, what’s the window to opt out?
- Are there different terms for vacant vs. occupied units?
- Scope of services
- Clearly list what’s included: leasing, showings, tenant screening, rent collection, maintenance coordination, 24/7 emergency response, inspections, legal notice posting, court coordination.
- Ensure LA-specific compliance is named (e.g., RSO rules, AB 1482 just-cause, buyout disclosures, security-deposit interest where applicable).
- Management and leasing fees
- Monthly management fee: flat amount or percentage of collected rent?
- Leasing fee: one-time fee for placing a tenant; does it include photos, listings, showings, screening, and lease signing?
- Renewal fee: is there a charge to renew a lease?
- Ancillary fees: advertising, setup/onboarding, inspection, admin, technology, or postage fees—make sure they’re disclosed.
- Maintenance and spending authority
- Authorization limit: the dollar threshold at which the manager can order work without prior owner approval.
- Vendor selection and markups: will the manager use third-party vendors, in-house crews, or both? Are there vendor markups or coordination fees?
- Emergency repairs: what qualifies as an emergency and how are you notified?
- Trust account, reserves, and disbursements
- Confirm rent is held in a broker trust account compliant with California regulations.
- Owner reserve: the minimum balance held to cover routine expenses.
- Payout schedule: when does TGN Property Management disburse funds to owners each month?
- Reporting and tax documents
- Monthly owner statements, access to an online portal, year-end summaries.
- W-9 and 1099-MISC issuance process for tax season.
- Insurance, liability, and legal compliance
- Require the manager to carry general liability and E&O insurance; ask to be listed as additional insured where appropriate.
- Indemnification and limitation of liability language should be balanced and reasonable.
- Explicit commitment to Fair Housing, habitability standards, and Los Angeles/California compliance (e.g., RSO, AB 1482).
- Marketing and data
- Who owns photos, copywriting, and listing data if you switch managers?
- What happens to your online listings upon termination?
Our Los Angeles Property Management company structures agreements to be transparent on all of the above, so owners can compare apples to apples across Los Angeles property management offers.
The Termination Clause: Your Exit Strategy
Your termination rights can be the most important part of the contract. Here’s what to look for and how TGN Property Management approaches it.
- Termination for convenience
- Many agreements allow either party to end the relationship without cause with written notice (often 30 days).
- Check if there’s a termination fee (flat fee or a multiple of the management fee). Owner-friendly contracts minimize or cap this.
- Termination for cause
- Immediate or short-notice termination for material breach (e.g., failure to account funds, license issues, nonperformance).
- The contract should define “cause” and outline a cure period (e.g., 10 days to fix an issue).
- Occupied units and existing leases
- Some contracts require the manager to remain in place until current leases expire—or charge a fee to hand off tenant relationships.
- Clarify how security deposits will be transferred and documented to stay compliant with California Civil Code 1950.5.
- Notice period and handoff
- Standard notice is 30 days, but verify how notice must be delivered (email, certified mail).
- Require a handoff checklist: keys, remotes, security codes, tenant ledgers, leases, move-in photos, warranties, vendor list, open work orders, and trust account balances.
- Surviving clauses
- Some provisions survive termination, such as indemnification, liability limits, or fees for tenants the manager placed (e.g., renewal fees).
- Negotiate limits so you’re not paying renewal fees long after switching managers.
- Non-solicitation and communication
- Ensure you retain the right to communicate with your tenants and vendors, and that the manager will issue a Notice of Change of Manager/Agent (as required under California law) so tenants know where to send rent and maintenance requests.
TGN Property Management emphasizes a clear, cooperative offboarding process to protect your asset and relationships, whether we’re stepping in or handing the portfolio to your next manager.
Los Angeles and California Nuances That Affect Your Contract
Los Angeles adds layers of compliance that should be reflected in the agreement:
- Rent Stabilization Ordinance (RSO): If your property is subject to RSO, the contract should address rent caps, relocation assistance triggers, interest on deposits, and notice requirements.
- AB 1482 (Statewide Just Cause/Cap): Expect procedures for just-cause terminations, exemptions, and addenda management.
- Security deposit handling: Clear procedures for accounting, interest where required by local law, and timelines tied to move-out.
- Legal notices and court coordination: Who prepares and serves notices? Who coordinates with counsel in an unlawful detainer? Fees and responsibilities should be spelled out.
TGN Property Management’s Los Angeles team builds these requirements into day-to-day operations and contract language to reduce risk and speed up decision-making.
Owner-Friendly Tips to Negotiate Better Terms
Use this quick checklist to improve your agreement before signing with any Los Angeles property management company:
- Ask for a 30-day termination-for-convenience with minimal or no penalty.
- Cap termination fees and delete renewal fees that survive termination unless there’s ongoing service.
- Set a reasonable maintenance approval limit and get written estimates above that amount (except emergencies).
- Demand full fee transparency: disclose all markups, admin fees, and pass-through costs.
- Require a documented offboarding plan: timelines, record transfer, and tenant communication.
- Clarify data and marketing ownership: photos and listings should be portable.
- Confirm insurance and licensing: ask for certificates naming you as additional insured where appropriate.
TGN Property Management welcomes these conversations and structures agreements to align with investor goals—clarity up front, flexibility when needed, and no games with small print.
How TGN Property Management Makes Contracts Simple
- Transparent pricing: Clear fee schedules with no surprise add-ons.
- Flexible exits: Owner-friendly termination options and a cooperative handoff if you ever move on.
- LA compliance baked in: RSO and AB 1482 procedures, proper trust accounting, and compliant notices.
- Professional offboarding/onboarding: Whether you’re joining TGN Property Management or transitioning away, we safeguard records, deposits, and tenant relationships.
If you’d like, we’ll review your current agreement line-by-line and highlight opportunities to reduce risk and costs.
Choose Clarity Now to Avoid Conflict Later
Your property management contract defines how your asset is protected, how decisions get made, and how quickly you can pivot. With TGN Property Management, Los Angeles owners get a contract that’s clear, compliant, and owner-first—and a termination clause that protects your flexibility without sacrificing continuity for your tenants.
Want a copy of our owner-friendly agreement or a free review of your current one? Contact TGN Property Management to get started.