What’s In Our Residential
Property Management Agreement?

We want you to feel confident about working with us, so we’re sharing a simple overview of the agreement we use to manage your rental property.  This will help you understand what to expect.  Remember that if you have questions, we’re always happy to help!

Who’s Who in the Agreement

• Agent:  That’s DMS Properties, LLC Residential Real Estate Services.  The main person in charge is Dale M. Servetnick, our Principal Broker.
• Owner:  That’s you!  The person or people who legally own the property.  We’ll check the Maryland property records or any legal papers like a deed or Power of Attorney to confirm that.
• Property:  This is the home you own that we’ll help rent out and take care of for you.
• Terms:  Our agreement usually lasts for 12 months and then renews every year unless you tell us otherwise.

What We Do for You

By signing the agreement, you’re giving us permission to take care of your rental property. That means:

• Collecting rent from tenants
• Hiring the right people to fix things when needed
• Paying bills related to your property
• Helping find new tenants when it’s time to rent again.  We use a special leasing agreement for this part known as the Exclusive Right to Lease Residential Brokerage Agreement.

Have Questions? We’re Here to Help!

We know this stuff can feel a little overwhelming, especially if it’s your first time renting out a property.  Don’t worry, though, because we’re here to guide you every step of the way.  If anything’s unclear or you’d like to see the full agreement, just contact us. We’d love to talk with you!

Leases and Receipts from Tenants

Here’s how we handle leases and money collected from tenants when we manage your rental property.

Setting Up the Lease

We work directly with tenants to set up the lease agreement.  Most of the terms we use come from a standard lease form created by Maryland Realtors.  It’s called the Deed of Lease for Maryland.

• Lease Length:  Most leases are for 12 to 24 months, but sometimes we can offer shorter leases if needed.

Collecting Money from Tenants

Once you (the owner) approve a tenant’s application, we’ll collect a security deposit from them.  After that:

• The home will be marked as PENDING in the Bright MLS system, so we’ll stop marketing it.
• Before move-in, we collect the first month’s rent from the tenant.

If your property already has tenants living in it when we start managing it, you have two choices:

• Transfer the security deposit to us so we can hold it, or
• Keep holding it yourself, but you must tell the tenants where their deposit is being kept.

We keep all security deposits in a non-interest-bearing account (that means it doesn’t earn extra money while it’s there).  When the tenant moves out, the deposit will be returned along with any required interest, as Maryland law requires.  The interest will be paid by you (the homeowner) from your maintenance account.

If tenants owe money or caused damage to the home, we’ll use part of their deposit to cover those costs.

Late Fees, Bounced Checks & Missed Appointments

• We collect late rent fees from tenants if they don’t pay on time.  These fees help cover our extra work and are kept by DMS Properties, LLC.  If you don’t want us to retain the late fees, that’s okay, but we’ll charge you $100/hour for any rent-collection work (like sending notices, going to court, etc.).
• If a tenant’s check bounces, we’ll charge them a fee to cover the bank costs.
• If a tenant misses an appointment (like for maintenance or a walk-through), they may also be charged a fee.

Have Questions? Let’s Talk!

We’re here to help make things easy for you.  If anything isn’t clear, or you want to talk about how these terms work for your specific property, just reach out to us.  We’re happy to walk you through it!

Payments to Owners & Our Fees

We want you to know exactly how and when you’ll get paid, and how our fees work.

How We Handle Payments

Before we send any money to you, we first make sure any costs (like repairs or management fees) are paid.  That’s because our company has what’s called a “first lien” on the money collected, and means we are paid first for services we’ve already provided.

When You’ll Get Your Money

We usually send your payment between the 12th and 14th of each month.  Most of our homeowners choose to get their funds through ACH (Direct Deposit) straight into their bank account.  It’s fast and secure!

Here’s how it works:

• We collect rent from the tenant.
• We subtract our management fee and any expenses (like repairs).
• Then we send the remaining amount to you.
• If the property is vacant and not listed for rent, there will be a small Vacancy Management Fee.

If we’re waiting on a repair to be finished, we might hold back some money until the contractor is paid.

Tenant Placement Fees

When we help find a new tenant for your home (under a special agreement called the Exclusive Right to Lease Residential Brokerage Agreement), a commission is charged.  That amount is agreed on ahead of time, and it comes out of the rent we collect.

Negative Balances

If your account with us ever goes into a negative balance (for example, if repairs cost more than rent collected), you’ll need to send funds to cover the difference.  We’ll always let you know if that happens and explain exactly what’s needed.

Got Questions? Let’s Talk!

We’re always happy to walk you through the details and make sure everything’s clear.  Just contact us.  We’re here to help and make property management easy!

Pets in Your Rental Property

As the homeowner, you get to decide whether pets are allowed in your rental property.  We’ll help you think through your options!

Important Info About Pit Bulls

In 2012, the Maryland Court of Appeals ruled that pit bulls are considered dangerous dogs.  The court said that if a pit bull injures or kills someone, both the dog’s owner and the landlord (that’s you) can be held fully responsible, even if you didn’t know the dog was dangerous.

Prince George’s County Rules About Pit Bulls

If your rental property is located in Prince George’s County, there are strict local laws about owning or allowing pit bulls. These rules are enforced by the Prince George’s County Animal Services Division.  Here’s what you need to know:

Pit Bulls Are Not Allowed (In Most Cases)

• Pit bulls born after February 3, 1997, are illegal in Prince George’s County and must be removed from the area.

If someone owns a pit bull born before that date, they must:

• Show written proof of ownership (like a rabies certificate or vet bill)
• Keep the dog indoors or in a secured kennel at all times

When outside, the dog must be:

• Under adult supervision
• On an unbreakable leash

Violating the Law Has Serious Consequences

Breaking the county’s pit bull law could lead to:

• Fines up to $1,000
• Or even jail time up to six months

What This Means for Your Rental Property

If your home is in Prince George’s County, we do not recommend allowing pit bulls under any circumstances.  The legal risks are simply too high for both you and your tenants.

Because of this information, we strongly advise not allowing pit bulls or pit bull mixes in your rental home.  We may decide to not manage your home if you will allow pit bulls.

Should You Allow Pets?

Many renters have pets, and in our experience, homes that allow pets get rented faster. That’s something to consider if you want to avoid long vacancies.

If you do allow pets:

• You can set rules about types of pets, number of pets, and pet size.  We’ll help screen tenants and their pets carefully.

New Law About Deposits (Starting October 1, 2024)

Maryland law now says that security deposits, including pet deposits, cannot be more than one month’s rent.  Because of this, we now charge pet rent instead of a separate pet deposit:

• Tenants with pets will pay an extra $25 per pet, per month.
• This pet rent is non-refundable and helps cover any extra wear and tear.

Questions?  Let’s Chat!

Not sure what pet rules are right for your rental home?  We’re happy to help you understand local laws and set up a pet policy that works for you.  Just contact us.  We’re here for you!

Rental Licenses for Your Home

Before renting out your property, there are a few legal steps you’ll need to take.  We’re here to help make sure everything is covered.

Do You Need a Rental License?

Many  jurisdictions) require a rental license before you can legally rent out your home.  The rules can be different depending on where your property is located.  We recommend checking out our FAQ about rental licenses for more details on what’s needed in your area.

Lead-Based Paint Certification (Very Important!)

If your home was built before 1978, Maryland law requires it to be:

• Registered with the State of Maryland
• Certified for lead safety

This law started in 2015, and it’s very important for protecting tenant health and keeping your property in compliance.  If tenants ask, we will provide them with a copy of the lead certification.

Let Us Help You Stay Compliant

We’ll guide you through the rental license process and make sure your property meets all legal requirements.  If you’re not sure where to start, just contact us.  We’ll walk you through it step by step!

Inspections and Maintenance
of Your Rental Home

We take good care of your home.  This is done before, during, and after it’s rented.  Our goal is to protect your investment and keep everything running smoothly for you and your tenants.

Move-In & Move-Out Inspections

Before tenants move in, we do a full inspection of the home.

• We take photos to show the condition of the property
• This helps us compare things when tenants move out
• At move-out, we do another inspection to see if there’s any damage
• If there is, we may charge repair costs against the security deposit

Ongoing Inspections

• We check the outside of the property from time to time to make sure everything looks good
• If a repair is needed, we go with the service provider to inspect and follow up
• We’ll figure out if the cost of the repair should be paid by the tenant or the homeowner

Safety Items & Maintenance Responsibilities

There are a few important things that must be maintained during the lease:

• Smoke detectors and carbon monoxide detectors must work at all times
• Furnace filters need to be changed regularly to keep the system running well

These are the tenant’s responsibility, and the lease explains that.  Tenants are also expected to handle minor maintenance, like:

• Replacing lightbulbs
• Taking care of small yard tasks
• Keeping the property clean and safe

If they can’t do something on their own, we can help them hire someone—at their expense.

Need Help Understanding What’s Covered?

If you’re wondering what counts as owner or tenant responsibility, or how we handle maintenance requests, just reach out to us.  We’re happy to explain everything and make sure you’re comfortable with the process!

Owner Responsibility for
Insurance and Financial Condition

As the homeowner, there are a few important responsibilities you have when renting out your property. These help protect both you and us during the lease.

Legal Protection

You agree to protect (indemnify) DMS Properties, LLC Residential Real Estate Services, and our team, from any legal claims or problems that might come up while we’re managing your property.  This includes:

• Damage to other people’s property
• Injuries or accidents that happen at the home
• Any civil or criminal issues connected to the rental

Insurance Coverage

It’s very important that you keep the right kind of insurance on your rental home.  We recommend one of the following:

• Owners, Landlords and Tenants (OLT) Insurance, or
• Extended Premise Liability Insurance

This policy should include at least $500,000 in liability coverage.  If your insurance company allows it, we ask that you add DMS Properties, LLC Residential Real Estate Services as an additional insured.

Let Us Know About Financial Issues

If there’s ever a serious financial issue with your property, like a bankruptcy or foreclosure, you are required to let us know right away.  We can’t help manage things properly unless we have all the information.

Questions? We’re Here for You

Not sure if your insurance covers everything?  Or have questions about what to report?  Just reach out to us.  We’ll help you figure it out and make sure everything is in order.