A property management agreement is an important legal document that lays out the legal duties of a company or individual who is hired by a property owner to manage real estate on behalf of the owner. Each state has laws that govern the contents of any property management contract and your contract must conform to these laws.
A property manager can be hired to manage, operate, control, rent out and/or lease a property, collect rent payment and hire contractors to repair and maintain the property. To ensure a smooth and mutually profitable relationship, it is vital to have a written agreement containing the terms and clauses agreed upon, such as compensation, how/when to accept rent, building maintenance responsibility, advertising vacancies, communicating with tenants and more.
The following form is a suggested property management agreement form which can be utilized as a template. LandLordStation.com advises that you consult an attorney if you have any questions regarding property management agreements. You can modify this form to add any provisions you deem appropriate.
PROPERTY MANAGEMENT AGREEMENT
This agreement is made and entered into this day of [date here] , between [owner name, address and telephone here] (Owner) and [manager name, address and telephone here] (Manager).
Owner hereby employs the services of Manager to manage, operate, control, rent and lease the following described property: [property description here]
Responsibilities of Manager
Owner hereby appoints Manager as his lawful agent and attorney-in-fact with full authority to do any and all lawful things necessary for the fulfillment of this agreement, including the following:
1. To collect all rents as they become due, giving receipts therefore and to render to Owner a monthly accounting of rents received and expenses paid out; and to remit to Owner all income, less any sums paid out.
2. To make, or cause to be made all decorating, maintenance, alterations and repairs to the property and to hire and supervise all employees and other labor for the accomplishment of same.
3. To advertise the property and display signs thereon; to rent and lease the property; to sign, renew and cancel rental agreements and leases for the property or any part thereof; to sue and recover for rent and for loss or damage to any part of the property and/or furnishings thereof; and, when expedient, to compromise, settle and release any such legal proceedings or lawsuits.
Liability of Manager
Owner hereby agrees to hold Manager harmless from any and all claims, charges, debts, demands and lawsuits, including attorney's fees related to his management of the herein-described property, and from any liability for injury on or about the property which may be suffered by any employee, tenant or guest upon the property.
Compensation of Manager
Owner agrees to compensate Manager as follows:
[payment for manage, including amount, date and any other provisions here]
Term of Agreement
This agreement shall be effective as of the [date of agreement start here] and shall expire on the [date agreement ends here] . Upon expiration of the above initial term, this agreement shall automatically be renewed and extended for a like period of time unless terminated in writing by either party by providing written notice [number of days for notice here] days prior to the date for such renewal. This agreement may also be terminated by mutual agreement of the parties at any time. Upon termination, Owner shall pay to Manager any fees, commissions and expenses due Manager under terms of this agreement, which are owing to Manager.
This document represents the entire agreement between the parties hereto.
IN WITNESS WHEREOF, the parties hereto hereby execute this agreement on the date first above written.
Owner Signature: (sign here)
Manager Signature: (sign here)
The template above is a very basic form and may not reflect the laws of the state in which your property is located. It is likely that this will serve as a starting point and that additional provisions will need to added by you. Always consult an attorney if you have any questions.
Some items you might want to include to the template above are as follows:
Again, these are only a few examples of the additional items you might want to include in your property management agreement template.
LandLordStation.com has a variety of forms in addition to this suggested property management agreement and has general information about residential rentals that is available to you.
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