What is a property management agreement?

A property management agreement is a contract between a property owner and a person or a business that would manage the property. It defines the responsibilities of both sides, remuneration for the manager, indemnity for the owner, and so on. Having a property management agreement protects the manager and the owner and claifies expectations.

What are the key components of a property management agreement?

The key components of a management agreement include: responsibilities of the manager/management company responsibilities of the property owner fees equal opportunity housing commitment liabilities agreement term termination conditions. These provisions cover the most important issues, though other elements could also be included in special situations

What is the purpose of the property management agreement?

The purpose of a property management agreement is to get the parties’ expectations about each other clearly defined and give them a straightforward solution in case of any conflict. A written agreement supercedes a verbal one and is admissible in courts, so the clearer it is the better.

Property Management Agreement Template

Created by:

[Sender.FirstName][Sender.LastName]

[Sender.Company]

Prepared for:

[Owner.FirstName][Owner.LastName]

[Owner.Company]

This Property Management Agreement (the "Agreement") is entered into on [Document.CreatedDate], by and between [Owner.FirstName][Owner.LastName] (the "Owner") and [Sender.Company] (the "Property Manager").

Appointment and Scope of Services

The Owner appoints the Property Manager to manage the following property/properties (the "Property"):

(List the addresses and details of the properties)

The Property Manager agrees to perform the following services (the "Services"):

Advertising and marketing the Property to potential tenants
Tenant screening, selection, and placement
Rent collection and accounting
Maintenance and repairs coordination
Lease and agreement administration
Regular property inspections
Other services, as agreed upon by the parties

Term

This Agreement shall commence on (start date) and continue for an initial term of (number of years/months). After the initial term, this Agreement shall automatically renew for successive terms of (number of years/months) unless terminated by either party with written notice at least (notice period) prior to the end of the then-current term.

Responsibilities of manager

Under the terms of this property management agreement, [Owner.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.

Compensation

The Property Manager shall receive compensation for the Services as follows:

A monthly management fee of (management fee amount) or (percentage) of the gross monthly rental income, whichever is greater.
An additional fee of (fee amount) for finding and placing a suitable tenant.
Reimbursement for any authorized out-of-pocket expenses incurred in performing the Services.

Owner Responsibilities

The Owner agrees to provide the following:

Accurate and up-to-date property information
Sufficient funds to cover property-related expenses, repairs, and maintenance
Cooperation with the Property Manager in fulfilling their obligations under this Agreement

Termination

Either party has the right to terminate this Agreement using a written notice if the other party breaches any agreement terms or for any other lawful reason. In the event of termination, the Property Manager shall provide a final accounting and return any unused funds to the Owner.

Governing Law

This Agreement shall be governed by and construed in accordance with the laws of [Sender.State].

Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes any prior understandings or agreements, whether written or verbal, relating to the Property Management Services.

By signing below, the Owner and the Property Manager acknowledge that they have read and understood the terms of this Agreement and agree to be bound by its provisions.