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Property Management Proposal Template

Prepared for:
[CLIENT.Company]

Prepared by:
[COMPANY.FirstName][COMPANY.LastName]
[COMPANY.Company]

Cover Letter

Dear [CLIENT.FirstName][CLIENT.LastName],

Almost every real estate investor desires a satisfactory income from their properties without the inconvenience of having to manage and attend to them.

At [COMPANY.Company] we offer our expertise and personalized techniques for managing your property. Our management concept is founded on professionalism, integrity, accountability, and quality service that guarantees the maximum return from your investment while maintaining your property at the highest standards and attracting the best tenants.

[COMPANY.Company] offers leasing and property management services for residential and commercial properties in [LOCATION OF SERVICES]. Our Company has [NUMBER] years' experience in the property management business. We are a full-service property management company that provides rental property supervision and management. From rent collection, tenant relations, evictions, and mortgage and bill payments to disaster protection and property maintenance, we take care of the headaches so you can collect the profits.

We will gladly submit a free quote for the management of your real estate property. You will find a list of our clients for your reference below.

Sincerely,

[COMPANY.FirstName][COMPANY.LastName]

[COMPANY.Company]

[COMPANY PHONE]

1. Executive Summary

Mission Statement

[COMPANY.Company] manages your Real Estate Properties 24-7!

Our Mission: Maximize Client income by applying exceptional Real Estate Property Management skills and ensure Tenant satisfaction with first-rate property maintenance.

The Headache:

All Real Estate Investors have 4 major concerns:

  • Maximizing earnings while minimizing expenses
  • Timely and proper rental collections and payables disbursement
  • Up-to-date reporting and complete accountability
  • Regular and complete real estate maintenance

The Answer:

Take the headaches of property management away by hiring us —‌ the experts. Then sit back and enjoy your well-deserved profits.

[COMPANY.Company] website will provide your vacant property with continuous, quality exposure. By using innovative marketing and advertising techniques, we will fill available spaces with qualified tenants fast. We have a thorough tenant qualification and selection process.

Our streamlined operations system eliminates unnecessary costs. We have a stringent process for all suppliers and service providers in place.

We have an automated Collections and Disbursement system that takes care of the revenue flow of the property; all entries are also checked by our auditor monthly. We have also engaged the services of an external auditor who inspects our books quarterly.

Everything is documented in user-friendly forms, and documents are available for inspection by property owners and their representatives.

We employ maintenance professionals to care for all properties under our management. Our dedicated staff are knowledgeable on all aspects of real estate property maintenance and supervision. We have contingency plans for all risks and disaster-related incidents in place.

We safeguard your investment by keeping your property attractive through detailed maintenance, paying attention to the Cost-to-Benefit Ratio, and practicing regular inspections to prevent problems.

We would be honored to manage your real estate properties for you.

2. Company Profile

  • Company Information
  • Company Name: [COMPANY.Company]
  • Head Office Address: [COMPANY ADDRESS]
  • Email Address: [COMPANY EMAIL]
  • Website: [COMPANY WEBSITE]
  • Telephone Numbers: [COMPANY PHONE NUMBERS]

Why Us?

Our focus at [COMPANY NAME] is to provide seamless transitions between tenants without loss of time and revenue through prompt enforcement, recovery, maintenance, and onboarding new tenants.

We understand the legal complexities of leasing and have gained invaluable knowledge over the years on how to mitigate and navigate conflicts and delinquencies to protect your real estate investment.

Our company was first established in [year] by [name]. Since then, we have managed properties ranging from [number] units to [number] units and have received awards and recognitions for our work.

Our awards and recognitions earned include:

  1. Award Issuing Body: [AWARD1] Date Received: [DATE RECEIVED AWARD1]
  2. Award Issuing Body: [AWARD2] Date Received: [DATE RECEIVED AWARD2]

We have worked for a number of real estate brokers and landlords in both residential and commercial property. They would be pleased to provide references:

  1. Name: [REFERENCE1 NAME]
    Contact Information: [REFERENCE1 CONTACT INFO]
  2. Name: [REFERENCE2 NAME]
    Contact Information: [REFERENCE2 CONTACT INFO]
  3. Name: [REFERENCE3 NAME]
    Contact Information: [REFERENCE3 CONTACT INFO]

Our staff and property managers are trained and licensed to operate as real estate property managers, and we work with licensed and trained trade workers. We hold full professional and commercial general liability insurance with [name of insurance provider].

Our license and permits:

  1. License Issuing Body: [LICENSE1] Expiration: [EXPIRATION OF LICENSE1]
  2. License Issuing Body: [LICENSE2] Expiration: [EXPIRATION OF LICENSE2]

Your Proposed Management Team

[Insert photo of property manager here.]

One of our top property managers, [Name], has worked in property management for [number] years. They completed their real estate management training in [year] and is licensed with the [Association].

[Name] manages a variety of properties ranging from retail spaces and industrial properties to multifamily complexes and family homes.

3. Costs

Our property management fee includes the following administrative and financial services:

  • Preparing the property for rental
  • Repair and maintenance
  • Property advertising
  • Tenant placement, screening, and leasing
  • Collection of fees
  • Security deposit trust fund management and audit
  • Accounts payable and receivable management
  • Monthly account statements
  • Conflict resolution
  • Delinquency enforcement
  • Evictions and legal process

Material and property operation costs are disbursed from property revenue with detailed account reports and are separate from our property management fee.

Detailed Estimation

[PRICING TABLE]

There are no additional charges for regular evictions. However, additional legal fees, court charges, and expenses will apply.

4. Property Management Agreement

If you would like to move forward with the management services as described, simply sign and return this document to us. We’ll be in touch to discuss the next steps.

Property Management Agreement

THIS PROPERTY MANAGEMENT AGREEMENT is entered into on [DATE] By and Between: [CLIENT.Company], hereinafter referred to as the “OWNER,” and [COMPANY.Company], hereinafter referred to as the “MANAGER.”

PARTICULARS

WHEREAS The OWNER is the duly registered and lawful owner of the Real Estate Property for lease hereunder described as follows:

  • Title Number: [TITLE NUMBER]
  • Lot Area: [LOT AREA]
  • Building(s): [BUILDING]
  • Floor Area: [FLOOR AREA]
  • Location: [LOCATION]

WHEREAS the MANAGER is a duly and registered licensed Property Management company; WHEREAS the MANAGER agrees to manage the above-mentioned property for the OWNER; NOW THEREFORE both parties bind themselves and agree as follows:

1. DUTIES AND AUTHORITY OF THE MANAGER

1.1 General Duties and Authority

The MANAGER shall have the sole and exclusive duty and authority to fully manage the Property and supervise and direct the business and affairs associated with or related to the daily operation thereof, to collect on behalf of the OWNER all revenues related to the Property, to pay on behalf of the OWNER all expenses of the Property (including payment of all debt service to the mortgage lender with respect to the Property, if any) and to execute on behalf of the OWNER such documents and instruments as, in the sole judgment of the MANAGER, are reasonably necessary or advisable under the circumstances in order to fulfill the MANAGER’s duties hereunder. Such duties and authority shall include, without limitation, those set forth below.

1.2 Renting Of The Property

The MANAGER shall establish policies and procedures for the marketing activities for the Property, and shall advertise the Property through such media as the MANAGER deems advisable, including, without limitation, advertising with the Yellow Pages. The MANAGER’s marketing activities for the Property shall be consistent with the scope and quality implemented by the MANAGER at any other properties managed by the MANAGER. The MANAGER may jointly advertise the Property with other properties owned or managed by the MANAGER.

1.3 Repair, Maintenance, and Improvements

The MANAGER shall make, execute, supervise, and have control over all decisions concerning the acquisition of furniture, fixtures, and supplies for the Property, and may purchase, lease, or otherwise acquire the same on behalf of the OWNER. The MANAGER shall make and execute, or supervise and have control over all decisions concerning the maintenance, repair, and landscaping of the Property.

The MANAGER shall, on behalf of the OWNER, negotiate, contract for, and supervise the installation of all capital improvements related to the Property; provided, however, that the MANAGER agrees to secure the prior written approval of the OWNER on all such expenditures, except monthly or recurring operating charges and/or emergency repairs if, in the opinion of the MANAGER, such emergency-related expenditures are necessary to protect the Property from damage.

1.4 Personnel

The MANAGER shall select all vendors, suppliers, contractors, subcontractors, and employees with respect to the Property and shall hire, discharge, and supervise all labor and employees required for the operation and maintenance of the Property.

Any employees so hired shall be employees of the MANAGER and shall be carried on the payroll of the MANAGER. Employees may include, but need not be limited to, on-site resident managers, on-site assistant managers, and relief managers located, rendering services, or performing activities on the Property in connection with its operation and management. The MANAGER shall be responsible for all legal and insurance requirements relating to its employees.

1.5 Service Agreements

The MANAGER shall negotiate and execute on behalf of the OWNER such agreements which the MANAGER deems necessary or advisable for the furnishing of utilities, services, concessions, and supplies, for the maintenance, repair, and operation of the Property and such other agreements that may benefit the Property or be incidental to the matters for which the MANAGER is responsible hereunder.

1.6 Regulations and Permits

The MANAGER shall comply in all respects with any statute, ordinance, law, rule, regulation, or order of any governmental or regulatory body, having jurisdiction over the Property and respecting the use of the Property or the maintenance or operation thereof, the non-compliance with which could reasonably be expected to have a material adverse effect on the OWNER or the Property.

The MANAGER shall apply for, obtain, and maintain, on behalf of the OWNER, all licenses and permits required or advisable in connection with the management and operation of the Property.

1.7 Records and Reports of Disbursements and Collections

The MANAGER shall establish, supervise, direct, and maintain the operation of a system of record-keeping and bookkeeping with respect to all receipts and disbursements in connection with the management and operation of the Property. The books, records, and accounts shall be maintained at the MANAGER’s office or at the OWNER’s office, or at such other location as the MANAGER and the OWNER shall determine, and shall be available and open to examination and audit quarterly by the OWNER, or its representatives.

On or before sixty (60) days after the close of each quarter, the MANAGER shall cause to be prepared and delivered to the OWNER a monthly statement on a per-Property basis, of receipts, expenses, and charges, together with a statement, on a per-Property basis, of the disbursements made by the MANAGER during such period on the OWNER’s behalf.

1.8 Collection

The MANAGER shall be responsible for the Billing and Collection of all Accounts Receivable and for payment of all Accounts Payable with respect to the Property and shall be responsible for establishing policies and procedures to minimize the number of bad debts.

1.9 Legal Actions

The MANAGER shall cause to be instituted, on behalf and in its name or in the name of the OWNER as appropriate, any and all legal actions or proceedings the MANAGER deems necessary or advisable to collect charges, rent, or other income due to the OWNER with respect to the Property and to oust or dispossess Owners or other persons unlawfully in possession under any lease, license, concession agreement, or otherwise, and to collect damages for breach thereof or default thereunder by such Owner, licensee, concessionaire, or occupant.

1.10 Insurance

The MANAGER shall obtain and maintain in full force and effect the insurance with respect to the Property and the operation of the OWNER’s and the MANAGER’s business operations thereat and the MANAGER’s employees, as required by law.

1.11 Taxes

During the term of this Agreement, the MANAGER shall pay on behalf of the OWNER, prior to delinquency, all real estate taxes, personal property taxes, and all other taxes assessed to or levied upon the Property. If required by the holder of any note secured by the Property, the MANAGER will set aside, from the OWNER’s funds, a reserve from each month’s rent and other income collected, in an amount required by said holder for purposes of payment of real property taxes.

1.12 Limitations on Manager Authority

Notwithstanding anything to the contrary set forth in this Section 1, the MANAGER shall not, without obtaining the prior written consent of OWNER:

1.12.1 Rent storage space in the Property by written lease or agreement for a stated term in excess of one year unless such lease or agreement is terminable by the giving of not more than thirty (30) days written notice;

1.12.2 Alter the building or other structures of the Property;

1.12.3 Make any other agreements that exceed a term of one year and are not terminable on thirty (30) day’s notice at the will of the OWNER, without penalty, payment, or surcharge;

1.12.4 Act in violation of any Law, or

1.12.5 Violate any term or condition of the Loan Documents, if any.

1.13 Deposit of Gross Revenues

All Gross Revenues shall be deposited into a bank account maintained by the MANAGER for the benefit of the OWNER. Gross Revenues of the OWNER shall be applied first to the repayment of the OWNER’s senior debt with respect to the Property, and then to the MANAGER in reimbursement of expenses and for Management Fees as provided under Section 3 below.

1.14 Obligations under Loan Documents and other Material Contracts

The MANAGER shall take such actions as are necessary or appropriate under the circumstances to ensure that the OWNER is in compliance with the terms of the Loan Documents and any other Material Agreement relating to the Property to which the OWNER is a party.

Nothing herein contained shall be deemed to obligate the MANAGER to fund from its own resources any payments owed by the OWNER under the Loan Documents or otherwise be deemed to make the MANAGER a direct obligor under the Loan Documents, except as may otherwise be expressly provided therein.

2. DUTIES OF OWNER

The OWNER shall cooperate with the MANAGER in the performance of the MANAGER’s duties under this Agreement and to that end, upon the request of the MANAGER, to provide at such rental charges as are deemed appropriate, reasonable office space for the MANAGER’s employees on the premises of the Property and to give the MANAGER access to all files, books, and records of the OWNER relevant to the Property. The OWNER shall not unreasonably withhold or delay any consent or authorization to the MANAGER required or appropriate under this Agreement.

3. COMPENSATION OF MANAGER

3.1 Reimbursement of Expenses

The MANAGER shall be entitled to reimbursement on a monthly basis for all out-of-pocket reasonable and customary expenses incurred by the MANAGER in the discharge of its duties hereunder. Such reimbursement shall be the obligation of the OWNER, whether or not Gross Revenues are sufficient to pay such amounts.

3.2 Management Fee

The OWNER shall pay to the MANAGER the full amount due for the services herein provided a Monthly Service Fee (the “Management Fee”) which shall be [MANAGEMENT FEE] ([PERCENT]%) of the Property’s Gross Revenue, plus an annual incentive fee (the “Incentive Fee”) at each fiscal year ending, based upon the performance of the Property.

For purposes of this Agreement, the term “Gross Revenue” shall mean all receipts (excluding security deposits unless and until the OWNER recognizes the same as income) of the MANAGER or the OWNER (whether or not received by the MANAGER on behalf or for the account of the OWNER) arising from the operation of the OWNER's business at the Property, including without limitation rental payments of self-storage customers at the Property, vending machine or concessionaire revenues, maintenance charges, paid by the Owners of the Property in addition to basic rent and parking fees, if any.

Gross Revenue shall be determined on a cash basis. The Management Fee shall be paid promptly, in arrears, within thirty (30) days of the OWNER's receipt of the invoice, which shall be sent from the MANAGER to the OWNER following the end of each calendar month. Such invoice shall be itemized and shall include reasonable detail. Except as provided in this Section 3, it is further understood and agreed that the MANAGER shall not be entitled to additional compensation of any kind in connection with the performance by it of its duties under this Agreement.

3.3 Inspection of Books and Records

The OWNER shall have the right, upon prior reasonable notice to the MANAGER, to inspect the MANAGER’s books and records with respect to the Property to assure that proper fees and charges are assessed hereunder. The MANAGER shall cooperate with any such inspection. The OWNER shall bear the cost of any such inspection; however, if it is ascertained that the MANAGER has overcharged the OWNER by more than [PERCENT OVERCHARGED]% in any given month, the cost of such inspection shall be borne by the MANAGER. The MANAGER shall promptly reimburse the OWNER for any overpayment.

4. DEFAULT; TERMINATION

4.1 Any material failure by the MANAGER or the OWNER (a “Defaulting Party”) to perform their respective duties or obligations hereunder (other than a default by the OWNER under Section 3 of this Agreement) that is not cured within thirty (30) calendar days after receipt of written notice of such failure from the non-defaulting party, shall constitute an event of default hereunder; however, the foregoing shall not constitute an event of default hereunder in the event the Defaulting Party commences cure of such material failure within such thirty (30) day period and diligently prosecutes the cure of such material failure thereafter but in no event shall such extended cure period exceed ninety (90) days from the date of receipt by the non-defaulting party of written notice of such material default.

In addition, following notice to the MANAGER of the existence of any such material failure by the MANAGER, the OWNER shall have the right to cure any such material failure by the MANAGER, and any sums so expended in curing shall be owed by the MANAGER to such curing party and may be offset against any sums owed to the MANAGER under this Agreement.

4.2 Any material failure by the OWNER to perform its duties or obligations under Section 3, in which material failure is not cured within ten (10) calendar days after receipt of written notice of such failure from the MANAGER, shall constitute an event of default hereunder.

4.3 The OWNER shall have the right to terminate this Agreement, with or without cause, by giving not less than thirty (30) days' written notice to the MANAGER pursuant to Section 10 hereof. The MANAGER shall have the right to terminate this Agreement, with or without cause, by giving not less than ninety (90) days' written notice to the OWNER pursuant to Section 10 hereof.

4.4 Upon termination of this Agreement, the MANAGER shall promptly return to the OWNER all monies, books, records, and other materials held by the MANAGER for or on behalf of the OWNER and shall otherwise cooperate with the OWNER to promote and ensure a smooth transition to the new manager, and the MANAGER shall be entitled to receive its Management Fee and reimbursement of expenses through the effective date of such termination, including the reimbursement of any prepaid expenses for periods beyond the date of termination.

5. INDEMNIFICATION

The MANAGER hereby agrees to indemnify, defend, and hold the OWNER, all persons and companies affiliated with the OWNER, and all officers, shareholders, directors, employees, and agents of the OWNER and of any affiliated companies or persons (collectively, the “Indemnified Persons”) harmless from any and all costs, expenses, attorneys’ fees, suits, liabilities, judgments, damages, and claims in connection with the management of the Property and operations (including the loss of use following any damage, injury, or destruction) arising from any cause or matter whatsoever, including without limitation any environmental condition or matter, except to the extent attributable to the willful misconduct or gross negligence on the part of the Indemnified Persons.

6. ASSIGNMENT

The MANAGER shall not assign this Agreement to any party without the consent of the OWNER.

7. STANDARD FOR PROPERTY MANAGER’S RESPONSIBILITY

The MANAGER agrees that it will perform its obligations hereunder according to Industry Standards, in good faith, and in a commercially reasonable manner.

8. TERM; SCOPE

Subject to the provisions hereof, this Agreement shall have an initial term of [TERM] year(s) commencing on the [DAY] of [MONTH], [YEAR] and ending on [DAY ENDING] of [MONTH ENDING], [YEAR ENDING].

9. HEADINGS

The headings contained herein are for convenience of reference only and are not intended to define, limit, or describe the scope or intent of any provision of this Agreement.

10. NOTICES

Any notice required or permitted herein shall be in writing and shall be personally delivered or mailed first class postage prepaid or delivered by an overnight delivery service to the respective addresses of the parties set forth on the first page of this Agreement, or to such other address as any party may give to the other in writing.

Any notice required by this Agreement will be deemed to have been given when personally served, one day after delivery to an overnight delivery service, or five days after deposit in the first class mail.

11. SEVERABILITY

Should any term or provision hereof be deemed invalid, void, or unenforceable either in its entirety or in a particular application, the remainder of this Agreement shall nonetheless remain in full force and effect and, if the subject term or provision is deemed to be invalid, void, or unenforceable only with respect to a particular application, such term or provision shall remain in full force and effect with respect to all other applications.

12. SUCCESSORS

This Agreement shall be binding upon and inure to the benefit of the respective parties hereto and their permitted assignments and successors in interest.

13. ATTORNEYS’ FEES

If it shall become necessary for any party hereto to engage attorneys to institute legal action for the purpose of enforcing their respective rights hereunder or for the purpose of defending legal action brought by the other party hereto, the party or parties prevailing in such litigation shall be entitled to receive all costs, expenses, and fees (including reasonable attorneys’ fees) incurred by it in such litigation (including appeals).

14. COUNTERPARTS

This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

15. AMENDMENT AND SUPPLEMENT

Any amendment and supplement to this Agreement shall come into force only after a written agreement is signed by both parties seven (7) days before the start of management. The amendment and supplement duly executed by both parties shall be part of this Agreement and shall have the same legal effect as this Agreement.

16. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the [STATE], [COUNTRY].

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be duly executed on their behalf by a duly authorized representative as of the date first set forth above.

[CLIENT.FirstName][CLIENT.LastName]


Signature

MM / DD / YYYY

[CLIENT.Company]

[COMPANY.FirstName][COMPANY.LastName]


Signature

MM / DD / YYYY

[COMPANY.Company]

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