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April 22, 2024

Using Auto-Renewal Language in Managed Service Contracts

Tom from Ohio asks: “Can we use auto-renewal language in our managed services contracts?”

NSCA responds: It depends. More states are creating laws that make the practice of including auto-renewal language in contracts for alarm systems and related solutions illegal – but, for now, that legislation applies only to residential applications. The concern is that this legislation may creep into the commercial sector as well.

If you’re going to include the language, you should let customers know first – and explain to them why it’s mutually beneficial.

In most cases, you can include auto-renewal language. But ask yourself if it’s really the best option.

Learn more about how to handle these situations here.

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