What contract risks do property managers face most often?

The highest-risk areas for property managers include: auto-renewal provisions in service and maintenance contracts, uncapped liability in supplier agreements, service charge and repair obligations in commercial leases, and break clause notice requirements that are easy to miss.

Should property managers review service contracts before signing?

Yes. Service contracts for maintenance, cleaning, security, and facilities management are often sent on the supplier's standard terms, which are written to protect the supplier. Key risks include auto-renewal, uncapped liability, and exclusion of consequential loss.

What does Clavico do for property managers?

Clavico scans any lease or service contract and produces a risk score (Low/Medium/High/Critical), plain-English summary, revenue leakage assessment, flagged clauses, and negotiation guidance in under 3 minutes. Starts at $39.

What should property managers look for in a commercial lease?

Key areas to review in a commercial lease include: service charge obligations and caps, repair and reinstatement obligations, break clause notice requirements, rent review mechanisms, and assignment and subletting restrictions.

Contract Review for Property Managers

Property managers sign and oversee more contracts than almost any other operational role — commercial leases, service agreements, maintenance contracts, and supplier terms. Most of those contracts were written by the other side. Clavico tells you what you're agreeing to.

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The property manager's contract stack

Property managers typically oversee a complex mix of contractual obligations on behalf of landlords, management companies, and occupiers. The contract stack includes:

Commercial leases — with complex repair, service charge, and break clause provisions
Facilities management and maintenance contracts
Cleaning, security, and landscaping service agreements
Insurance broker and managing agent agreements
Supplier and procurement contracts for planned maintenance
Regulatory compliance agreements (fire safety, lift maintenance, etc.)

Most of these contracts arrive on the supplier's or counterparty's standard terms. Without dedicated legal support for routine reviews, property managers often sign on the basis of a headline price and a read-through — missing clauses that can create significant liability or cost.

The five contract clauses that matter most in property management

1. Auto-renewal in service contracts

Maintenance and FM contracts routinely include auto-renewal clauses: if you don't give written notice 60–90 days before expiry, the contract rolls for another term at the same (or escalated) price. With multiple contracts on different renewal cycles, missed notice deadlines are a common and preventable cost.

2. Service charge obligations in leases

Commercial leases often include open-ended service charge obligations — requiring the tenant to pay a proportion of building operating costs, which may not be capped. Understanding the scope, audit rights, and challenge mechanisms in the service charge provisions is essential before execution.

3. Repair and reinstatement obligations

Full repairing and insuring (FRI) leases place repair obligations on tenants that can create significant liability at lease end. Dilapidations claims can run to hundreds of thousands of pounds on commercial properties. The extent of the repair obligation should be read carefully before lease execution.

4. Break clause notice requirements

Commercial leases frequently include break clauses — the right to exit early, subject to notice and conditions. Break clause notices are notoriously technical: the wrong notice period, the wrong addressee, or an unfulfilled condition can invalidate the break and lock you (or your client) into a lease for years longer than intended.

5. Liability and indemnity in supplier agreements

Maintenance and service contracts often include indemnity clauses that push liability for third-party claims — personal injury, property damage — towards the property manager or managing agent. Uncapped indemnities in supplier agreements are a common and addressable risk.

"In property management, the most expensive contract is the one you didn't read carefully before signing."

What Clavico does for property managers

Upload any lease, service agreement, or supplier contract. In under 3 minutes you get:

Risk score — Low / Medium / High / Critical, with the clauses driving each rating identified
Auto-renewal flag — Notice deadlines highlighted so nothing rolls unnoticed
Plain-English summary — What the contract means in operational and financial terms, not legal terms
Revenue leakage assessment — Scored across payment timing, scope, auto-renewal, indemnity, and liability exposure
Negotiation guidance — Specific terms to push back on and market-standard alternatives

Pricing

Clavico starts at $39 for 1 scan, or $99 for a 5-scan pack.

For property managers overseeing multiple buildings and supplier contracts, the 5-scan pack provides cost-effective review cover across a full contract cycle. A single flagged auto-renewal clause or successfully negotiated service charge cap typically saves multiples of the scan cost in the first year.

Find out what your next contract is costing you

Upload any contract. Clavico finds the money you'd lose, the clauses to push back on, and the exit traps — before you sign. No lawyer needed. Results in under 3 minutes.

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