Property Management Agreement

PROPERTY MANAGEMENT AGREEMENT

Effective Date: [Date]

Between:

RECITALS

A. Owner is the legal owner of the property located at [Property Address], including [Number] units, more particularly described as [Brief Property Description] (hereinafter referred to as the "Property").

B. Owner desires to engage Manager to supervise, manage, lease, operate, and maintain the Property.

C. Manager is experienced in the business of managing, operating, and leasing real estate similar to the Property and desires to provide such services to Owner.

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, Owner and Manager agree as follows:

1. APPOINTMENT AND TERM

1.1. Appointment: Owner hereby appoints Manager as the sole and exclusive agent to manage, operate, lease, and maintain the Property upon the terms and conditions set forth in this Agreement.

1.2. Term: This Agreement shall commence on the Effective Date and shall continue for an initial term of [Number] year(s) (the "Initial Term").

1.3. Renewal: Unless terminated by either party as provided herein, this Agreement shall automatically renew for successive terms of [Number] year(s) each (each a "Renewal Term"), unless either party provides written notice of non-renewal to the other party at least [Number] days prior to the end of the Initial Term or any Renewal Term.

2. MANAGER'S RESPONSIBILITIES AND AUTHORITY

Manager shall perform the following services with due diligence and in accordance with professional standards and applicable laws:

2.1. Rent Collection:

• Collect all rents, security deposits, and other charges due from tenants of the Property.
• Establish and maintain a separate trust account for all funds collected, in accordance with applicable law.
• Pursue collection of delinquent accounts, including initiating legal proceedings as approved by Owner.

2.2. Tenant Management:

• Advertise vacancies, screen prospective tenants (including credit checks, background checks, and rental history verification), and negotiate and execute lease agreements on behalf of Owner, using lease forms approved by Owner.
• Enforce lease terms, handle tenant requests and complaints, and manage tenant relations.
• Initiate and supervise eviction proceedings for cause, with Owner's prior approval for costs exceeding [Amount].

2.3. Property Maintenance and Repairs:

• Conduct regular inspections of the Property and recommend to Owner any necessary repairs, replacements, or alterations.
• Supervise and coordinate all maintenance, repairs, and improvements to the Property. Manager is authorized to make or cause to be made ordinary repairs and alterations to the Property up to an expenditure of [Amount] per instance without prior Owner approval. For expenditures exceeding this amount, Manager shall obtain Owner's prior written approval, except in emergencies.
• Negotiate contracts with and supervise independent contractors for services such as cleaning, landscaping, security, and repairs.

2.4. Financial Reporting and Record Keeping:

• Maintain accurate and complete records of all income and expenses related to the Property.
• Provide Owner with monthly financial statements by the [Day] of each month, detailing all receipts, disbursements, a rent roll, and a narrative of operations.
• Prepare and submit to Owner an annual operating budget for the Property for Owner's approval.

2.5. Compliance with Laws:

• Ensure the Property complies with all applicable federal, state, and local laws, ordinances, and regulations, including housing codes, health and safety codes, and fair housing laws.
• Manage permits and licenses required for the operation of the Property.

3. OWNER'S RESPONSIBILITIES

3.1. Provide Funds: Owner shall provide Manager with sufficient funds to cover operating expenses, repairs, and other costs associated with the Property that exceed the income collected from the Property.

3.2. Insurance: Owner shall maintain, at Owner's expense, comprehensive general liability insurance and property casualty insurance for the Property in amounts acceptable to Manager. Owner shall name Manager as an additional insured on such policies. Owner shall provide Manager with certificates of insurance.

3.3. Access: Owner shall provide Manager with access to the Property and all relevant documents, records, and information necessary for Manager to perform its duties under this Agreement.

3.4. Mortgage, Taxes, and Assessments: Owner shall be responsible for the payment of all mortgage payments, property taxes, special assessments, and other governmental impositions related to the Property.

4. COMPENSATION OF MANAGER

4.1. Management Fee: As compensation for the management services rendered hereunder, Owner shall pay Manager a monthly management fee equal to [Percentage]% of the gross monthly rents collected from the Property, or a flat fee of $[Amount] per month, whichever is greater/specified. This fee is due and payable on the [Day] of each month.

4.2. Leasing Fee: For securing new tenants, Owner shall pay Manager a leasing fee equal to [Percentage]% of the first full month's rent or a flat fee of $[Amount] per new lease executed.

4.3. Other Fees (Optional):

• Late Fee Share: Manager shall be entitled to [Percentage]% of any late fees collected from tenants.
• Maintenance Markup: For maintenance or repair work coordinated by Manager and performed by third-party contractors, Manager may charge an administrative fee of [Percentage]% of the total cost of such work.
• Eviction Fee: $[Amount] per eviction processed.
• Sales Commission: If the Property is sold to a tenant procured by Manager, Owner agrees to pay Manager a sales commission of [Percentage]% of the sales price.

5. FINANCIAL ADMINISTRATION

5.1. Operating Account: Manager shall establish and maintain a separate bank account (the "Operating Account") for the deposit of all income collected from the Property and the payment of all operating expenses. This account shall be maintained in a federally insured institution and shall be held in trust for Owner.

5.2. Security Deposits: All tenant security deposits shall be maintained in a separate trust account in accordance with applicable state and local laws.

5.3. Disbursements: Manager is authorized to pay from the Operating Account all operating expenses of the Property, including Manager's compensation, maintenance costs, utilities (if applicable), and other approved expenses.

6. INDEMNIFICATION AND LIABILITY

6.1. Indemnification: Owner agrees to indemnify, defend, and hold harmless Manager, its officers, employees, and agents from and against any and all claims, demands, liabilities, losses, damages, costs, and expenses (including reasonable attorneys' fees) arising out of or related to (a) any act or omission of Owner, (b) the condition of the Property, or (c) Manager's performance of its duties under this Agreement, except to the extent caused by Manager's gross negligence or willful misconduct.

6.2. Manager's Liability: Manager shall not be liable to Owner for any loss or damage unless caused by Manager's gross negligence or willful misconduct. Manager's liability under this Agreement shall be limited to the total compensation paid to Manager by Owner during the [Number] months preceding the event giving rise to the claim.

7. TERMINATION

7.1. Termination for Cause: Either party may terminate this Agreement for cause if the other party fails to cure a material breach of this Agreement within [Number] days after receiving written notice of such breach.

7.2. Termination Without Cause:

• During Initial Term: [Specify conditions, e.g., "Neither party may terminate without cause during the Initial Term," or specify a buyout fee.]
• After Initial Term: Either party may terminate this Agreement without cause by providing at least [Number] days written notice to the other party.

7.3. Duties Upon Termination: Upon termination, Manager shall:

• Provide Owner with a final accounting of all funds.
• Transfer all tenant security deposits and records to Owner or Owner's new agent.
• Cooperate with Owner to ensure a smooth transition of management responsibilities.

8. GENERAL PROVISIONS

8.1. Notices: All notices, requests, demands, and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally, sent by reputable overnight courier, or mailed by certified or registered mail, return receipt requested, postage prepaid, to the addresses set forth at the beginning of this Agreement or to such other address as either party may designate in writing.

8.2. Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of [State].

8.3. Entire Agreement: This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether oral or written.

8.4. Amendment: This Agreement may be amended only by a written instrument signed by both parties.

8.5. Severability: If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall continue in full force and effect.

8.6. Waiver: The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver of such provision or of the right to enforce such provision thereafter.

8.7. Assignment: Neither party may assign this Agreement without the prior written consent of the other party, except that Owner may assign this Agreement to a successor owner of the Property.

8.8. Relationship of Parties: Manager is an independent contractor, and nothing in this Agreement shall be construed to create a partnership, joint venture, or employer-employee relationship between Owner and Manager.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.