Property Management Agreement Template
Meet Your New Manager
When you hire [Sender.Company], you will be partnering with a leader in property management in Location for the past Time.Period. Our clients receive the highest standards of service from a team of professionals who ensure the seamless operation and maintenance of your property 24 hours a day.
Our clients include multi-unit residential properties, single-family homes, office spaces, retail locations, and more:
- Existing.Client1, Number.Street1, City1, State1
- Existing.Client2, Number.Street2, City2, State2
- Existing.Client3, Number.Street3, City3, State3
What to Expect
Responsibilities of manager
Under the terms of this property management agreement, [Client.Company], hereby referred to as “Owner,” authorizes [Sender.Company], hereby referred to as “Manager,” to perform business-related transactions on behalf of Owner for the property at Number.Street in City, hereby referred to as “Property.” Manager is given full authority to carry out all lawful necessary steps to fulfill this agreement.
A. Exclusivity of services
Manager has the exclusive right to manage and lease Property for the duration of this agreement. Both parties agree that Manager has sole cause of any lease of, or agreement to any lease of, Property, whether made in writing or orally.
B. Rent collection
Manager will collect from tenants rent payments on or before the due date, and issue receipts to tenants. Owner will be paid out all income monthly in a manner of their choice, minus Manager pay and expenses incurred. Manager will provide a monthly accounting of all rent payments for Owner’s records. Disbursement to Owner will occur on or before Disbursement.Date each month, as long as tenants have fully paid rent. Manager assumes responsibility of any rent payment disputes with tenants.
Payment by check
Payment by electronic transfer
C. Scope of manager’s expectations
- Operates and controls Property.
- Compiles, negotiates, and executes new leases, renewals, security deposits, or terminations.
- Coordinates and oversees repair services deemed necessary by Owner, or contractually required under a lease; pay for services with Owner’s funds.
- Actively promotes Property when necessary through advertising, marketing, and listing available units.
- At Owner’s expense, serves legal notices to tenants when necessary on behalf of Owner, with Owner’s prior consent, and hires attorneys when needed for eviction proceedings or rent recuperation. Owner agrees to be an interested party in such legal action, and Manager has full authority to settle claims on behalf of Owner.
- Seeks new tenants when appropriate, making no guarantees as to the occupancy level of Property.
- Collects rent from tenants when due, making no guarantees as to regular payment from tenants.
- At Owner’s expense, hires collection agencies when necessary.
- Maintains a thorough accounting of rent payment receipts, expenses, and charges on a monthly basis for Owner.
- Hires and supervises employees to repair, maintain, and decorate Property.
Manager shall be considered an agent of Owner, given full authority to perform necessary actions to evict tenants and/or collect unpaid rent. Manager has the right to enter Property at any time during the length of this property management agreement.
Limitation of Liability
Manager, and all employees or independent contractors hired by Manager, shall have no liability under this agreement, including such liability related to injury to persons or damage to Property under Manager’s supervision, except in instances of gross negligence or willful misconduct by Manager.
Owner is responsible for obtaining and paying for general liability insurance and other necessary insurance to protect the interests of Manager and all associated personnel.
Owner agrees to pay Manager under the following conditions:
- The greater of Percentage percent of the gross rental income due to be paid by tenants under existing or future rental agreements, or a flat dollar amount of Flat.Dollar.Amount. Payment will be due by Owner to Manager on the 1st of each month based on tenant commitments the preceding month.
- If Manager conducts property reviews for publication, Owner shall pay Review.Dollar.Amount per review. Such reviews will include a written overview of Property and recommended preservation projects, including a preliminary cost estimate for each project.
- Should Property be sold to any tenant or other party during or after the terms of this agreement, Manager will be considered integral to such sales and therefore entitled to Sales.Percentage percent commission on the gross sale price. Additionally, Manager can list Property at the request of Owner for the agreed upon commission rate if a sale is made.
Manager shall base rent prices on commercially reasonable rates for the region in which Property is located. Manager is given discretion to rent units in Property at a minimum and maximum rate within Dollar.Figure of previously agreed upon rates. Manager shall present offers to Owner for review and consideration if they fall above or below previously agreed upon rates. Unit rental prices are as follows:
|Type of Unit||Price Range|
|Studio, 1 bathroom, 450 sq. ft.||$500-700/month|
|1 bedroom, 1 bathroom, 700 sq. ft.||$900-1100/month|
|2 bedroom, 2 bathroom, 1100 sq. ft.||$1300-1500/month|
Manager will be responsible for advertising of units, tenant screening for credit worthiness and ability to pay monthly rental rate. Manager will be responsible for obtaining lease agreements, renewals, and terminations; and to take all necessary legal actions to recover unpaid rent or tenant costs associated with damage to Property or its furnishings.
Terms and Termination
Manager and Owner enter into this property management agreement on Contract.Start.Date. This agreement shall automatically renew after one year unless Owner provides 60 days prior notice in writing to Manager.
Property Management Agreement
This property management agreement begins as of Day.Month.Year and is entered into by Client Name and Sender Name for the Property at Number Street in City.