Twelve questions to ask before you sign a management agreement
A practical checklist for owners reviewing a proposal or a renewal.
About the money
1. What is the base fee, and what revenue does it apply to? 2. What is the incentive fee and exactly how is profit defined? 3. What other charges can reach my P&L, and can I see last year’s actual amounts at a comparable property?
About control
4. Which decisions need my approval, such as budgets, capital spending, hiring a general manager and vendor contracts? 5. Who owns the guest data and the reservation relationships? 6. What reporting will I receive and how often?
About the people
7. Who specifically will be assigned to my property, and what happens if they leave? 8. How much of their time will my property get? 9. Who hires and fires the general manager, and what is my role?
About leaving
10. What is the initial term and how does renewal work? 11. Can I terminate without cause, and what does it cost? 12. What performance standard lets me terminate for underperformance?
If the answers are unclear
Unclear answers are an answer. If you would like a second set of eyes, send us the agreement for a free plain-English review. This is an operator’s read, not legal advice, so have your attorney review the final document.
Try it free for 30 days.
One property or a portfolio. No contract and no pressure: start the trial, get the calls and reporting on your calendar, and decide whether it is worth the flat fee.