Extraordinary Management Services & Fees

 

A well drafted Property Association Management Agreement will clearly detail the services to be provided by the Managing Agent and will also make provision for the rendition of Extraordinary Management Services for which the Managing Agent would be entitled to compensation. Extraordinary Management Services typically include providing assistance to the Association in presenting and concluding an insurance claim over a certain dollar threshold or in providing assistance to the Association in connection with a major capital replacement or capital improvement project.  These Extraordinary Management Services are non-recurring and as such should generate additional compensation to the Property Manager.  The Management Agreement should require as a precondition to compensation that the Managing Agent secure the written consent of the Association’s Governing Board prior to the rendition of the Extraordinary Management Services.