Before You Hire a Property Manager
A Property Management Agreement Should Explain How Your Rental Will Actually Be Managed
A property management agreement is more than permission to collect rent. It establishes the authority, financial controls, approval limits, responsibilities, records, and communication standards that will guide the day-to-day management of your Las Vegas rental property.
The Operating Document
The Agreement Defines Who Can Make Which Decisions
Rental Owners often focus first on the monthly management fee. The more important question is what the property manager is authorized and expected to do after the agreement is signed.
A well-written property management agreement establishes the working rules for the entire relationship. It should explain how rent will be collected, how applicants will be reviewed, when repairs may be authorized, how the Owner will receive records, what happens during an emergency, and how either party may end the management relationship.
The agreement also protects both parties from unclear expectations. Without defined authority, even ordinary decisions can stall. A repair waits for approval, an HOA notice is forwarded without follow-through, or the Owner assumes a service is included when the agreement says otherwise.
Nevada Requires a Written Agreement
Under NRS 645.6056 , a Nevada real estate broker holding a property management permit must obtain a property management agreement signed by the broker and the client before acting as the property manager.
Nevada law requires the agreement to address the term and renewal, tenant deposits, the manager’s compensation, the extent of agency authority, cancellation provisions, and asset-management services when those services are provided.
Start With the Fundamentals
What an Owner Should Be Able to Locate Quickly
An Owner should not have to search through pages of general language to understand the essential business terms. These provisions should be clear before the agreement is signed.
Ten Provisions Worth Reading
Important Property Management Agreement Terms
The following provisions explain how an agreement moves from paper into daily property management. They are also useful comparison points when interviewing Las Vegas property management companies.
Management Authority and Agency
The agreement should identify the property manager as the Owner’s agent and explain the extent of that authority. Typical authority may include advertising the home, communicating with applicants, entering leases, collecting rent, coordinating maintenance, enforcing lease terms, and communicating with the HOA.
Authority should be broad enough for the manager to handle routine operations but clear enough for the Owner to understand which decisions still require Owner direction.
Owner review point: Look for the difference between routine management authority and decisions involving a significant expense, legal strategy, property improvement, or change in the Owner’s investment plan.
Monthly, Leasing, and Renewal Fees
The agreement should state each fee, what triggers it, and when it becomes payable. Owners should also review charges that may appear outside the main fee section, including cancellation, court, inspection, administrative, or transfer-related charges.
Rice Real Estate & Property Management currently charges an 8% monthly management fee on rent collected, a leasing fee equal to 25% of one month’s rent when a new tenant is placed, and a renewal fee equal to 10% of one month’s rent when the current Resident renews.
Rice Real Estate & Property Management does not add a maintenance markup or maintenance coordination fee to third-party vendor invoices. Review the complete current terms on our Pricing & Services page .
Owner review point: Compare the total fee structure rather than the monthly percentage alone. A lower monthly rate can be offset by repair markups, inspection charges, advertising fees, or other recurring costs.
Leasing and Applicant-Screening Authority
The agreement should explain who is authorized to market the home, show the property, receive applications, verify documentation, apply the published qualification standards, approve an application, and sign the lease.
The process is more precise than saying the property manager simply “selects the tenant.” Rice Real Estate & Property Management reviews the complete application file under published Rental Criteria and applicable fair housing requirements.
Our tenant-screening process includes TransUnion SmartMove information, supporting documents, income, creditworthiness, debt obligations, rental history, background and eviction information, cash reserves, authorized occupancy, and internal document review.
Owner review point: The agreement should permit consistent screening decisions without allowing subjective or discriminatory applicant instructions from any party.
Maintenance Approval Limits and Emergencies
Most management agreements establish a dollar amount the property manager may approve for routine maintenance without first obtaining separate Owner authorization. The agreement should state the limit, the exceptions, and how estimates or additional approval will be handled.
Emergency authority should be addressed separately. An active water leak, electrical hazard, unsecured exterior door, gas concern, or serious HVAC failure during extreme Las Vegas temperatures may require immediate action to protect people and property.
The agreement should also distinguish between repair coordination and property improvements. Replacing a failed component is not necessarily the same decision as upgrading or remodeling the home.
Owner review point: A maintenance authorization limit is not a spending target. It allows ordinary repairs to move forward without delaying every service call while preserving Owner approval for larger non-emergency expenses.
Owner Reserve Requirements
A property management agreement may require the Owner to maintain a minimum reserve for repairs, utilities, HOA expenses, legal costs, or other property obligations. The reserve helps prevent delays when rent has not yet been collected or the property ledger does not contain enough money to pay an authorized expense.
The agreement should explain the required amount, when it must be replenished, how it may be used, and what happens to the unused balance after management ends.
Owner review point: Confirm whether the reserve is funded before leasing begins, deducted from future rent, or handled through another agreed process.
Trust Accounting and Tenant Deposits
Rental income, security deposits, and authorized property expenses must be handled through regulated trust-account procedures rather than treated as operating money belonging to the management company.
Nevada property management trust-account rules require accounting records for the managed property and separate handling of rental operations and security-deposit funds. Owners can review the Nevada Real Estate Division’s Trust Fund Accounting and Record Keeping guidance .
The management agreement should also explain who holds the security deposit, how it will be transferred if management changes, and how the Owner will receive statements, invoices, and ledger records.
Owner review point: Ask how the manager keeps property-level accounting separate, reconciles trust accounts, documents vendor payments, and preserves deposit records.
Insurance and Risk Requirements
The agreement should identify the Owner’s insurance obligations. These may include maintaining a landlord policy, appropriate liability coverage, notifying the manager of cancellation or material policy changes, and confirming whether the property manager must be shown as an additional insured or additional interest.
The required coverage may change when the home has a private pool, solar equipment, unusual amenities, or another condition that creates additional exposure. Owners should discuss coverage, exclusions, deductibles, and loss-of-rent protection directly with a qualified insurance professional.
Our Las Vegas rental property Owner FAQs provide additional information about Owner responsibilities, insurance, maintenance, and property acceptance.
Owner review point: A homeowners policy designed for an owner-occupied residence may not be appropriate after the property becomes a long-term rental.
HOA Information and Compliance Responsibilities
For a home governed by an HOA, the agreement should explain what information the Owner must provide and what the property manager will handle. Important records may include community rules, account numbers, contact information, parking restrictions, landscaping standards, architectural requirements, and outstanding violations.
Rice Real Estate & Property Management has a dedicated HOA violation department that reviews notices, determines responsibility, tracks deadlines, coordinates the appropriate response, collects correction evidence, and follows the matter through documented closure.
Owner review point: Determine whether HOA notice handling is included, what charges may apply to Owner-responsibility work, and who remains responsible for assessments, fines, approval fees, and legal decisions.
Inspections, Walkthroughs, and Property Documentation
An agreement should explain which property visits are included, which are available at an additional cost, and what documentation the Owner will receive. Move-in, occupied-property, annual, and move-out visits serve different purposes.
Rice Real Estate & Property Management documents the property through move-in and move-out walkthroughs, Quality Assurance visits, annual reviews, photos, written reports, maintenance records, and Owner Portal documentation.
Our rental home inspection and documentation guide explains the difference between a property-management visit and a certified home inspection performed by a separately licensed home inspector.
Owner review point: The word “inspection” can describe very different services. Review the scope, frequency, documentation, limitations, and cost rather than relying on the label alone.
Termination, Transfer, and Owner Records
Review how either party may terminate the agreement, how much notice is required, whether a cancellation fee applies, and which obligations continue after notice is given.
The agreement should also explain what happens to rent, deposits, tenant ledgers, lease documents, inspection reports, invoices, keys, open maintenance matters, HOA notices, and other property records after management ends.
Rice Real Estate & Property Management does not charge a cancellation penalty when the management relationship is not the right fit, subject to the notice and transition terms stated in the management agreement.
Owners moving a property from another manager should begin by reviewing the existing agreement, required notice, lease, deposit records, accounting, repair history, and open issues. Our 3-Minute Owner Briefing explains what we review during a management transfer.
Owner review point: Ending management should not leave the Owner without the records needed to manage the existing tenancy, account for the deposit, complete pending repairs, or continue lease enforcement.
The Onboarding Process
What Happens After the Management Agreement Is Signed?
Signing the agreement begins the management relationship, but the property still needs to be properly onboarded. The exact process depends on whether the home is vacant, occupied, newly purchased, or transferring from another property manager.
The Agreement Is the Framework, Not the Entire Service
A contract can authorize a property manager to screen applicants, coordinate repairs, maintain records, and communicate with the HOA. It cannot by itself guarantee careful judgment or consistent follow-through.
Owners should evaluate both the written agreement and the operating process behind it. Review how the company documents decisions, communicates exceptions, supervises vendors, handles deadlines, and keeps the Owner informed without shifting routine management back to the Owner.
Compare More Than Fees
Questions to Ask Before Signing
Before entering a management relationship, ask the company to explain the agreement in practical terms. What can the manager approve? When will the Owner be contacted? How are applications reviewed? Where are deposits held? What records are available? How are emergencies, vacancies, renewals, HOA notices, and management transfers handled?
The answers should match both the written agreement and the company’s actual operating model. A broad promise of “full service” is less useful than a clear explanation of responsibility, authority, documentation, and follow-through.
Owners can also review our guide to renting out a Las Vegas home and our complete Las Vegas property management services before requesting an agreement.
Review the Current Terms
Request a Sample Property Management Agreement
Rice Real Estate & Property Management can provide a current sample agreement and additional information about our management services for long-term rental houses, townhomes, and condos throughout the Las Vegas Valley.
The sample allows you to review the management structure, fees, authority, Owner responsibilities, accounting provisions, maintenance terms, and cancellation process before deciding whether our service is the right fit for your rental property.
This article provides general educational information for rental property Owners and is not legal advice. Property management agreements and legal requirements may change. Owners should review the current agreement and consult a qualified Nevada attorney regarding questions about their individual rights, obligations, ownership structure, or legal exposure. The final agreement signed by Rice Real Estate & Property Management and the Owner controls the management relationship.