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Property Management Agreement
Clearly outline responsibilities and fees for property management services using this Property Management Agreement Template.
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Property Management Agreement
This Property Management Agreement ("Agreement") is made and entered into on [Date], by and between:
Owner: [Property Owner’s Full Name / Company Name]
Address: [Owner’s Address]
and
Manager: [Property Manager’s Full Name / Company Name]
Address: [Manager’s Address]
Together referred to as the "Parties."
1. Property Description
The Owner hereby appoints the Manager to manage the following property:
[Full Address and Description of the Property]
(the "Property").
2. Term
This Agreement shall begin on [Start Date] and shall remain in effect until [End Date] or until terminated by either Party in accordance with Section 9.
3. Scope of Services
The Manager agrees to perform the following duties:
Advertise and lease available units
Collect rent and deposits
Manage repairs and maintenance
Handle tenant complaints and communications
Maintain records and provide monthly financial statements
Ensure compliance with local laws and housing regulations
4. Manager Compensation
The Manager shall receive compensation as follows:
[X]% of collected monthly rent, OR
Flat fee of $[Amount] per month
Additional fees (e.g., for leasing, repairs, or emergencies) must be pre-approved by the Owner unless stated otherwise.
5. Owner Responsibilities
The Owner agrees to:
Provide all necessary documentation, including proof of ownership
Maintain appropriate property insurance
Fund large repairs and capital improvements as needed
Reimburse the Manager for authorized expenses
6. Financial Handling
The Manager shall:
Open and maintain a separate bank account for property income and expenses
Provide detailed monthly reports to the Owner
Keep all financial records available for inspection
7. Liability and Indemnification
The Manager shall not be liable for any losses due to the condition of the Property or actions of tenants, unless resulting from gross negligence or willful misconduct. The Owner agrees to indemnify and hold the Manager harmless from any such claims.
8. Insurance
The Owner shall maintain property and liability insurance naming the Manager as an additional insured party.
9. Termination
Either Party may terminate this Agreement with [30] days’ written notice. In the event of breach, termination may occur immediately. Upon termination, the Manager shall return all property records, keys, and funds.
10. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of [State/Country].
11. Entire Agreement
This Agreement represents the entire understanding between the Parties and supersedes all prior discussions, agreements, or understandings, whether oral or written.
IN WITNESS WHEREOF, the Parties have executed this Property Management Agreement as of the date first written above.
Owner Signature
Name:
Date:
Manager Signature
Name:
Date:
Details
Learn more about
Property Management Agreement
PROPERTY MANAGEMENT AGREEMENT FAQ
What is a Property Management Agreement?
A property management agreement is a legally binding contract between a property owner and a property manager or management company. It outlines the scope of management services, fee structure, maintenance responsibilities, reporting requirements, and the terms under which the property will be managed. This document ensures that both parties have a clear understanding of their obligations and rights.
Why do you need a Property Management Agreement?
You need a property management agreement to protect the interests of both the owner and the manager by defining expectations in writing. It helps prevent misunderstandings, establishes accountability, and provides a legal basis for resolving disputes. This agreement also ensures that the property is managed in a way that aligns with the owner’s goals—whether that’s maximizing rental income, maintaining property value, or ensuring tenant satisfaction.
When should you use a Property Management Agreement?
Use a property management agreement whenever you hire a third party to oversee rental, commercial, or investment properties. This applies whether you own a single rental unit, a portfolio of residential properties, or commercial real estate. Having the agreement in place before services begin ensures both parties start with a shared understanding.
How to write a Property Management Agreement?
Include detailed property information, a clear description of management duties (such as tenant screening, rent collection, maintenance, and financial reporting), the fee structure, contract duration, renewal and termination clauses, insurance requirements, and governing law. Both parties should review the agreement carefully and sign it to make it legally binding.
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