The management contract defines the relationship between the management company and the condominium (represented by the board of directors). The contract will contain the term of the agreement and the price, but will also lay out exactly what is expected of the company.

Some key things to look for:

• Termination clause: How many months do you have to pay the company if decide to terminate the agreement. Industry standard is 60 days.
• Spending limits: How much can the management company spend without informing the board?
• Extra charges: Some companies charge extra to attend meetings, to send letters, to follow up on late payments, etc. Make sure you know the full cost of the service before signing.
• Hours per week on site
• Extra cost for project management: Some companies charge extra to manage large projects.

A good management company will be open to editing or modifying their contract to meet the needs of each condominium. At the very least, a representative from the management company should sit down with a representative from the board and go over the contract in detail prior to signing.