Exclusive Property Management Agreement
Thoughts on signing an exclusive property management agreement for specific counties. My property manager, whom I really believe is an "A" player and has proven to be so far, is proposing an exclusive agreement for the specific counties they cover and to have a discounted rate for doing so. They are eager to get my business since they know I'm going to triple their portfolio over the next 3 years. They currently manage 200 doors. They're offering me a reduced rate from 8%-6% for the exclusive rights. Is the 2% discount worth putting all my eggs in their basket? Or should I pay the extra to have the option to spread out? Maybe an option to go exclusive after some time where the rates would be adjusted on a go-forward basis would be better?