Property Management Agreement
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Property Management Agreement

Property Management Agreement

This property management agreement is between , an individuala(n) (the "Owner") and , an individuala(n) (the "Manager").

The Owner is the owner of the certain apartment building located at ,   (the "Property").

The Owner wishes to engage the Manager as manager of the Property and the Manager wishes to provide these services.

The parties therefore agree as follows:

1. ENGAGEMENT; SERVICES.

  • (a) Engagement. The Owner retains the Manager to provide and the Manager shall provide exclusive operational, management, maintenance, and leasing services at the Property (the "Services").
  • (b) Services. Without limiting the scope of Services described above, the Manager shall:
    • (i) collect all rents issuing from the Property as they become due and disburse funds by ordinary mailin personby overnight delivery  or by ordinary mailin personby overnight delivery  or by ordinary mailin personby overnight delivery  or by ordinary mailin personby overnight delivery as instructed by the Owner on or before the of the current month (if the Owner has not already received the rent from the tenant);
    • (ii) deposit all funds collected on the Owner's behalf (less any sums deducted under this agreement or otherwise) in one or more accounts (the "Trust Accounts") at a duly qualified national or  banking institution, separate from the Manager's own accounts;
    • (iii) refund tenants' security deposits at the expiration of leases;
    • (iv) maintain accurate records of receipts, expenses, and accruals in connection with managing the Property;
    • (v) execute and serve, in the Owner's name, notices and demands on delinquent tenants;
    • (vi) institute, settle, or compromise, in the Owner's name, any legal action against a delinquent tenant or a delinquent tenant's property to enforce the collection of rent or other amounts due, to enforce any conditions of a lease or month-to-month rental agreement, and to recover possession of all or any part of the Property. However, no other form of legal action maybe instituted and no settlement, compromise, or adjustment of any matters involved made without the prior written consent of the Owner, except when the Manager determines that immediate action is necessary;
    • (vii) buy supplies, make contracts for, and otherwise furnish electricity, gas, fuel, water, telephone, window cleaning, garbage collection, pest control, and any other utilities and services required to operate the Property;
    • (viii) maintain the Property in an attractive condition, and repair its interior, exterior, and landscaping of the Property;
    • (ix) for expenditures for repairs, alterations, decorations, or furnishings in excess of $, obtain the Owner's prior written consent, except (A) in case of emergency, (B) if the Manager in good faith determines that the expenditures are necessary to protect the Property from damage, to prevent injury to persons or loss of life, or to maintain services to tenants, or (C) if the expenses are monthly or recurring;
    • (x) hire, discharge, and supervise any labor and employees required to operate and maintain the Property, and arrange for bonding for employees who will handle cash on behalf of the Owner and the Manager;
    • (xi) advertise the Property and any vacant units by reasonable means, including the placement of "For Lease" signs or other signs on the Property in accordance the law and owners' association rules, although the Manager may not incur advertising expenses greater than $ during any without the Owner's prior written consent;
    • (xii) investigate references of prospective tenants, and approve new tenants based on legal criteria, including job security and creditworthiness;
    • (xiii) sign month-to-month tenancies of units and negotiate extensions and renewals of these tenancies and leases, although the Manager may not enter into leases with terms less than month(s) or more than month(s) without the Owner's prior written consent;
    • (xiv) terminate leases, negotiate lease terminations,and sign notices of termination;
    • (xv) place a keybox on the Property;
    • (xvi) duplicate keys and access devices to facilitate convenient and efficient showings of the Property and to lease the Property;
    • (xvii) complete and sign any lead-based paint/hazards certifications on behalf of the Owner;
    • (xviii) make reasonable efforts to lease any available units at the Property, and to negotiate with prospective tenants, including making concessions as an inducement to prospective tenants to occupy a unit on the Property; and
    • (xix) continuously maintain a real estate  license in ; (xix) continuously maintain a property management license in ; (xix) continuously maintain a(n) license in ;
    • (xx)(xix) provide the Owner with a weeklysemi-monthlymonthly accounting of rents received and expenses paid in the form of itemized financial statements, which statements shall, at a minimum, include (for the relevant period) the amount of security deposits received or refunded, the amount of rent or receipts, itemized by unit, an itemized description of disbursements, and end of the period balance of the Trust Accounts;
    • (xxi)(xx) remit all income, less any disbursements and accruals for future expenses, or amounts otherwise deposited in the Trust Accounts, to the Owner; and
    • (xxii)(xxi) perform any other necessary services related to the leasing or management of the Property.
  • (c) Owner Obligations. The Owner shall:
    • (i) give copies of all keys, entry codes, leases, and rental agreements to the Manager;
    • (ii) provide the Manager with loan payment coupons and envelopes, property tax bills, and insurance premium billings;
    •  (iii) pay all taxes and mortgage payments on the Property;
    • (iv)(ii) cooperate with the Manager to facilitate the showing, marketing, and lease of the Property;
    •  (v) (iii) provide all documentation and records required by the Manager to manage and operate the Property, including all known facts that materially affect the value of the Property;
    •  (vi)(iv) inform the Manager before conveying or leasing the Property;
    •  (vii)(v) carry and pay for public and premises liability, property damage, and any other insurance adequate to protect the interests of the Owner and the Manager and name the Manager as an additionally-named insured. The Owner shall provide a copy of such insurance policy to the Manager for the Manager's records; and
    •  (viii)(vi) pay any late charges, penalties, and interest imposed by lenders or other parties because of a lack of Owner funds held by the Manager and available for payment to those parties.

2. TERM AND TERMINATION.

  • (a) Term. This agreement will become effective as described in section 17. Unless it is terminated earlier in accordance with subsection (b), this agreement will continue for an initial period of years (the "Term"). This agreement will extend automatically for terms of the same length as the initial term unless a party provides notice to the other at least days before that renewal. However, this agreement may not remain effective for more than years.
  • (b) Termination Procedures. This agreement may be terminated:
    • (i) by either party for a material breach of any provision of this agreement by the other party, if the other party's material breach is not cured within days of receipt of written notice;  or
    • (ii) by the Owner at any time and without prior notice, if the Manager is convicted of any crime or offense, fails or refuses to comply with the written policies or reasonable directives of the Owner, or is guilty of serious misconduct in connection with performance under this agreement.; or
    • (iii) automatically, on the death of the Manager.
  • (c) Management Fees After Termination. Following the termination of this Agreement for any reason, the Owner shall promptly pay the Manager any fees earned under section 3 for Services rendered before the effective date of the termination. No other compensation, of any nature or type, shall be payable after the termination of this agreement.
  • (d) Funds Received by Manager After Termination. If the Manager receives any funds on the Owner's behalf after the end of the Agreement (e.g., rent, damages, past due amounts, etc.), the Manager shall (i) retain % of the funds received as compensation for Services rendered (i.e., for research, accounting, communicating, and processing) at that time and (ii) pay the balance of the amount received to the Owner.
  • (e) Owner Responsible for Further Payments. After termination of the agreement, the Owner shall assume the obligations of any contract or outstanding bill incurred by the Manager under this agreement. The Manager may withhold funds for days after the end of the month in which the agreement is terminated in order to pay bills that were previously incurred but not yet invoiced and to close accounts. The Manager shall deliver to the Owner, within days after the end of the month in which the agreement is terminated, any balance of monies due to the Owner or tenant security deposits, or both, that were held by the Manager with respect to the Property, as well as a final accounting reflecting the balance of income and expenses with respect to the Property as of the date of termination or withdrawal.

3. COMPENSATION.

  • (a) Management Fee. The Owner shall pay the Manager a management fee equal to $ per month% of the gross rental receipts collected from the operation of the Property, or $ a month, whichever is greater.. "Gross rental receipts" means all revenues collected plus refundable deposits. The Owner shall pay these amounts to the Manager within days after the end of each month.
  • (b) Additional Fees. Normal property management does not include property sale, refinancing, preparing property for sale or refinancing, modernization, fire, or major damage restoration, rehabilitation, obtaining income tax, accounting, or legal advice, representation before public agencies, advising on proposed new construction, debt collection, counseling, attending Owner's association meetings, or insurance claims. If the Owner requests the Manager to perform services not included in normal property management or specified above, a fee shall be agreed upon for these services before any such work begins.

4. REIMBURSEMENT OF EXPENSES.

The Owner shall promptly reimburse the Manager for the following expenses related to the leasing or management of the Property:

  • (a) copy charges;
  • (b) charges for long-distance telephone calls or faxes;
  • (c) regular, express, or certified mail charges;
  • (d) notary fees;
  • (e) photos and videos;
  • (f) advertising costs to promote the Property, regular pool maintenance through a licensed and bonded pool service company, and lawn maintenance service, including fertilization and pest control;
  • (g) reasonable travel expenses, including mileage reimbursement, parking expenses, and tolls; and
  • (h) any other expenditures the Manager is authorized to make under this agreement or that Owner otherwise authorizes the Manager to make behalf.

5. INDEMNIFICATION.

The Owner shall indemnify the Manager from all claims, charges, debts, demands, and lawsuits and pay the Manager's attorneys' fees related to the Manager's management of the Property and any liability for injury on or about the Property that may be suffered by any employee, tenant, or guest on the Property.

6. NATURE OF RELATIONSHIP.

The relationship of the parties under the agreement is one of independent contractors, and no joint venture, partnership, agency, employer-employee, or similar relationship is created in or by this agreement. Neither party may assume or create obligations on the other party's behalf, and neither party may take any action that creates the appearance of that authority.

7. REPRESENTATIONS.

  • (a) The parties each represent that they shall comply with all responsibilities under state property law, fair housing and antidiscrimination laws, and any other statutes, administrative rules, ordinances, or restrictive covenants applicable to the use, leasing, management or care of the Property.
  • (b) The Owner hereby represents that:
    • (i) it has fee simple title to and peaceable possession of the Property and all its improvements and fixtures, unless rented, and the legal capacity to lease the Property;
    • (ii) there are no written or oral agreements affecting the Property other than disclosed tenant leases, copies of which have been furnished to the Manager;
    • (iii) there are no recorded easements, restrictions, reservations, or rights of way that adversely affect the use of the Property for the purposes intended under this agreement;
    • (iv) the Property is zoned for the intended use;
    • (v) all permits for the Property's operation have been secured and are current;
    • (vi) the building and its construction and operation do not violate any laws or orders;
    • (vii) any pool or spa and any required enclosures, fences, gates, and latches comply with all applicable laws and ordinances;
    • (viii) it is unaware of any condition concerning the Property that materially affects the health or safety of an ordinary tenant  except for the following: ; and
    • (ix) all loans, notes, mortgages, dues, or trust deeds are fully paid and are current without defaults.

8. CHOICE OF LAW.

  • (a) Choice of Law. The laws of the state of govern this agreement (without giving effect to its conflicts of law principles).
  • (b) Choice of Forum. Both parties consent to the personal jurisdiction of the state and federal courts in , .

9. AMENDMENTS.

No amendment to this agreement will be effective unless it is in writing and signed by both parties.

10. ASSIGNMENT AND DELEGATION.

  • (a) No Assignment. The Manager may not assign any of its rights under this agreement, except with the prior written consent of the Owner. All voluntary assignments of rights are limited by this subsection.
  • (b) No Delegation. The Manager may not delegate any performance under this agreement, except with the prior written consent of the Owner.
  • (c) Enforceability of an Assignment or Delegation. If a purported assignment or purported delegation is made, or if both are made, in violation of this section, it is void and they are void.

11. COUNTERPARTS; ELECTRONIC SIGNATURES.

  • (a) Counterparts. The parties may execute this agreement in any number of counterparts, each of which is an original but all of which constitute one and the same instrument.
  • (b) Electronic Signatures. This agreement, agreements ancillary to this agreement, and related documents entered into in connection with this agreement are signed when a party's signature is delivered by facsimile, email, or other electronic medium. These signatures must be treated in all respects as having the same force and effect as original signatures.

12. SEVERABILITY.

If any provision in this agreement is, for any reason, held to be invalid, illegal, or unenforceable in any respect, that invalidity, illegality, or unenforceability will not affect any other provisions of this agreement, but this agreement will be construed as if the invalid, illegal, or unenforceable provisions had never been contained in this agreement, unless the deletion of those provisions would result in such a material change that would cause completion of the transactions contemplated by this agreement to be unreasonable.

13. NOTICES.

  • (a) Writing; Permitted Delivery Methods. Each party giving or making any notice, request, demand, or other communication required or permitted by this agreement shall give that notice in writing and use one of the following types of delivery, each of which is a writing for purposes of this agreement: personal delivery, mail (registered or certified mail, postage prepaid, return-receipt requested), nationally recognized overnight courier (fees prepaid), facsimile, or email.
  • (b) Addresses. A party shall address notices under this section to a party at the following addresses:
  • If to the Owner:
  • ,
  • If to the Manager:
  • ,
  • (c) Effectiveness. A notice is effective only if the party giving notice complies with subsections (a) and (b) and if the recipient receives the notice.

14. WAIVER.

No waiver of a breach, failure of any condition, or any right or remedy contained in or granted by the provisions of this agreement will be effective unless it is in writing and signed by the party waiving the breach, failure, right, or remedy. No waiver of any breach, failure, right, or remedy will be deemed a waiver of any other breach, failure, right, or remedy, whether or not similar, and no waiver will constitute a continuing waiver, unless the writing so specifies.

15. ENTIRE AGREEMENT.

This agreement constitutes the final agreement of the parties. It is the complete and exclusive expression of the parties' agreement with respect to the subject matter of this agreement. All prior and contemporaneous communications, negotiations, and agreements between the parties relating to the subject matter of this agreement are expressly merged into and superseded by this agreement. The provisions of this agreement may not be explained, supplemented, or qualified by evidence of trade usage or a prior course of dealings. Neither party was induced to enter this agreement by, and neither party is relying on, any statement, representation, warranty, or agreement of the other party except those set forth expressly in this agreement. Except as set forth expressly in this agreement, there are no conditions precedent to this agreement's effectiveness.

16. HEADINGS.

The descriptive headings of the sections and subsections of this agreement are for convenience only, and do not affect this agreement's construction or interpretation.

17. EFFECTIVENESS.

This agreement will become effective when all parties have signed it. The date this agreement is signed by the last party to sign it (as indicated by the date associated with that party's signature) will be deemed the date of this agreement.

18. NECESSARY ACTS; FURTHER ASSURANCES.

Each party shall use all reasonable efforts to take, or cause to be taken, all actions necessary or desirable to consummate and make effective the transactions this agreement contemplates or to evidence or carry out the intent and purposes of this agreement.

[SIGNATURE PAGE FOLLOWS]

Each party is signing this agreement on the date stated opposite that party's signature.




Date: _____________________________ By: _________________________________________________________
Name:
Title:






Date: _____________________________ By: _________________________________________________________
Name:
Title:




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