Property Management Agreement Templates

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What Is a Property Management Agreement?

A Property Management Agreement, also known as a Property Management Contract, is a document that outlines the business relationship between a property owner and the entity or individual hired to manage this property. Just like a Rental Form, it covers all the responsibilities of the parties, their legal liabilities, and insurance coverage for the property. 

A simple Property Management Agreement will protect your interests if:

  1. You own a property and wish to retain a company or person to manage the building or apartment;
  2. You own a property management company and want to have written proof of negotiated terms and conditions with the owner of the property.

You may create a Property Management Agreement using our online form builder or download one of the ready-made contracts through the links below.

What Items Must Be Included in a Property Management Agreement?

Every Property Management Agreement form must contain the following information:

  1. Purpose. Briefly describe the subject of the contract;
  2. Manager's responsibilities. You may include several duties in the agreement, for example, advertising of the property, collection of rent, repair, and maintenance, legal proceedings;
  3. Compensation. State the sum of money the manager will receive for the work;
  4. Duration of the agreement;
  5. Termination clause. The parties may negotiate this provision adding conditions they deem necessary, for instance, reimbursement for any expenses incurred before the date of termination;
  6. Severability. If any provision of the agreement becomes unenforceable or invalid, that part will be severed from the rest of the contract and other provisions will continue in full force;
  7. Liability. Indicate the responsibility in cases regarding injuries or personal claims against the property - for example, when the manager was aware of a health hazard and did not fix it;
  8. Signatures of the parties. The manager and the owner must also write down their names and the date the deal is made.

Benefits of drafting a Property Management Contract:

  1. It sets the standard of performance for both participants;
  2. It provides a definite time frame once a party chooses to terminate the contract;
  3. It is essential to protect you from liability;
  4. It provides a structure for a beneficial partnership between the property manager and the owner.

How to Get out of a Property Management Agreement?

There are several steps you need to take to properly terminate a Property Management Contract:

  1. Reread your agreement to find a specific reason to end the contract. Some agreements will allow you to cancel the agreement without a just cause;
  2. Understand the costs that may occur - some agreements will charge a fee for early termination;
  3. Give an advance notice to the other party of the contract. The termination clause usually requires between thirty- and ninety-days-notice to terminate the deal. Make sure your notification is sent by certified mail, not by e-mail;
  4. Notify the tenants about the change in property management and let them know the whereabouts of their security deposits;
  5. Get copies of all the paperwork - records of security deposits, and possible expenses.

Looking to find out more? Check out these related contracts and agreements:



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Size: 97 KB
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