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Property management agreement template

This a property management agreement template sample that you can use free of charge. You can copy and paste it into Microsoft Word or Google Docs and edit as you like.

Property Management Agreement

This Property Management Agreement (the "Agreement") is entered into on _________________________ [Date] by and between:

  • Property Owner _________________________ [Property Owner's Name] located at _________________________ [Property Owner's Address] (the "Owner").
  • Property Management Company _________________________ [Property Management Company's Name] located at _________________________ [Property Management Company's Address] (the "Manager").

1. Scope of Services

The Manager agrees to provide property management services to the Owner for the following property/properties:

1. Property Address: _________________________ [Address of the Property/Properties]
2. Description of Property: _________________________ [Brief description of the property/properties]
3. Services Included: The property management services shall include but are not limited to:

  • Rent collection and deposit
  • Lease agreement preparation and execution
  • Tenant screening and selection
  • Maintenance and repairs coordination
  • Regular property inspections
  • Handling tenant inquiries and complaints
  • Financial reporting and record-keeping
  • Eviction proceedings (if necessary)
  • Other property management duties as agreed upon by both parties

2. Terms of Agreement

This Agreement shall commence on _________________________ [Start Date] and shall continue for a period of _________________________ [Term Length] unless terminated earlier by either party in accordance with the terms herein.

3. Compensation

  1. The Owner agrees to pay the Manager a management fee of _________________________ [Management Fee] of the monthly rental income collected from the property/properties managed.
  2. Additionally, the Owner agrees to reimburse the Manager for any reasonable expenses incurred in the management of the property/properties.

4. Termination

  1. Either party may terminate this Agreement by providing written notice to the other party _________________________ [Termination Notice Period] days prior to the intended termination date.
  2. If either party breaches any material term of this Agreement, the non-breaching party may terminate this Agreement with immediate effect by providing written notice.

5. Liability and Indemnification

  1. The Manager shall not be liable for any damages, losses, or liabilities arising out of the acts or omissions of tenants or third parties, unless such damages, losses, or liabilities are caused by the Manager's gross negligence or willful misconduct.
  2. The Owner agrees to indemnify and hold the Manager harmless from any claims, damages, losses, or liabilities arising out of the Owner's use, occupancy, or ownership of the property/properties.

6. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of _________________________ [Your State or Country].

7. Entire Agreement

This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements, understandings, and negotiations, whether written or oral.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

Property Owner
Signature: _________________________ [Signature]
Name and title: _________________________ [Name and Title]
Date: _________________________ [Date]

Property Manager
Signature: _________________________ [Signature]
Name and title:_________________________ [Name and Title]
Date: _________________________ [Date]

Property management agreement template

What is a Property Management Agreement?

A property management agreement is a legal agreement between a property owner or landlord and a property management company or individual. It outlines the terms and conditions under which the property management firm will manage the rental property on behalf of the owner. These agreements are crucial for establishing clear expectations, duties, and responsibilities for both parties involved in the management of real estate assets.

Key Components of a Property Management Agreement

1. Scope of Services

The agreement specifies the range of services the property management company will provide, such as advertising vacancies, screening tenants, collecting rent, handling maintenance requests, and managing financial records.

2. Duration of Agreement

It states the duration of the agreement, including the start date and end date, as well as provisions for renewal or termination.

3. Compensation

The agreement details the compensation structure for the property management services, which may include a flat fee, a percentage of the rental income, or a combination of both.

4. Responsibilities of the Property Owner

The property owner's responsibilities, such as maintaining the property in compliance with local regulations, providing necessary funds for repairs, and adhering to fair housing laws, should be clearly outlined.

5. Responsibilities of the Property Manager

The property management company's duties, including finding and screening tenants, handling maintenance issues promptly, keeping accurate financial records, and ensuring legal compliance, should be clearly defined.

6. Termination Clause

It specifies the conditions under which either party may terminate the agreement, including notice periods and any associated penalties or fees.

7. Insurance and Liability

The agreement may include provisions regarding insurance coverage and liability, outlining the insurance requirements for both parties and specifying who is responsible for damages or losses.

8. Dispute Resolution

Procedures for resolving disputes between the property owner and the property management company, such as mediation or arbitration, may be outlined in the agreement.

9. Governing Law and Jurisdiction

The agreement typically specifies the laws and jurisdiction that will govern the interpretation and enforcement of the agreement.

Importance of a Property Management Agreement

A property management agreement serves to protect the interests of both the property owner and the property management company. By clearly outlining the rights, responsibilities, and expectations of each party, the agreement helps prevent misunderstandings and disputes. It provides a framework for effective communication and collaboration between the property owner and the property manager, ultimately ensuring the smooth and efficient management of the rental property.

Conclusion

In summary, a property management agreement is a vital document that formalizes the relationship between a property owner and a property management company. It establishes clear guidelines for the management of rental properties and helps safeguard the interests of both parties involved.

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