Property management agreement template

Property Management Agreement

Parties: Owner · Manager

1. Purpose

This agreement sets out the terms on which the Owner appoints the Manager to manage the property described below, and what each party must do.

2. Property and appointment

Property: [[Address and description of the property, e.g. an apartment, a house, a building with several units]]

The Owner appoints the Manager, [[exclusively / non-exclusively]], to manage the property on the Owner’s behalf and in the Owner’s name as described in this agreement.

The Owner confirms that it owns the property or is entitled to let and manage it, and that it has any consent that is needed from co-owners, lenders or the building association.

3. Services

The Manager provides these services: [[Services included, e.g. finding tenants, collecting rent, arranging repairs, inspections, dealing with tenants and the building association]]

The Manager provides them with reasonable care and skill and may use suitable contractors and staff, for whose work it remains responsible to the Owner. Legal proceedings, tax returns and the sale of the property are not part of the services unless the parties agree otherwise in writing or in electronic form.

4. Authority and spending limit

The Manager may order repairs and other work for the property without asking the Owner first up to [[Amount]] per item. Above that amount it needs the Owner’s approval, except in an emergency where it acts at once to protect people or the property and tells the Owner immediately afterwards.

Without the Owner’s consent in writing or in electronic form, the Manager may not sell, mortgage or give security over the property, and may not sign a tenancy agreement for longer than [[12]] months or on terms the Owner has not approved.

5. Letting and tenants

The Manager advertises the property, shows it to applicants and checks them against the criteria agreed with the Owner: [[Tenant criteria, e.g. income, references, number of occupants, pets]]

It treats applicants fairly and without any discrimination that the law that applies prohibits. The Owner approves the tenant and the rent before a tenancy agreement is signed. Tenancy agreements, tenants’ rights and notices follow the law that applies to the tenancy, and the Manager prepares and keeps the documents accordingly.

6. Rent, deposits and money handling

The Manager collects the rent and other sums due from tenants and pays them into [[a separate client account / the account stated here: Account details]]. It pays the Owner the money due by the [[10th]] day of each month, after deducting its fees and the costs the Owner has agreed to.

Tenants’ deposits are held and protected as the law that applies requires, and the Manager keeps records of them. The Manager is not obliged to pay money from its own funds.

If a tenant falls into arrears, the Manager reminds the tenant, tells the Owner and takes the further steps agreed with the Owner, within the limits of the law that applies.

7. Repairs and maintenance

The Manager arranges routine repairs and maintenance, asks for quotes for larger work and uses suitable contractors. Contractors’ invoices are paid from the rent collected or by the Owner, as the Owner prefers.

The Manager tells the Owner of any commission, discount or other benefit it receives from contractors and [[passes it on to the Owner / keeps it, as stated here]]. The Manager inspects the property [[twice a year]] and tells the Owner of its condition.

8. Safety and legal compliance

Each party does what the law that applies requires of it for the property and its letting, such as safety checks and certificates, registrations, notices to tenants and licences. The Owner gives the Manager the certificates and the information it has about hazards and about the building, and the Manager arranges the checks that are due.

The Manager confirms that it holds any licence or registration that the law that applies requires to manage property: [[Licence or registration details, or none required]]

9. Fees and costs

The Owner pays the Manager the fees shown in the price schedule of this contract or, if there is none, [[Management fee, e.g. a percentage of the rent collected or a fixed monthly amount]] and, for finding a tenant, [[Letting fee, or none]]. Fees exclude tax unless the price schedule says otherwise.

The costs of repairs, utilities, insurance, taxes and charges for the property are paid by the Owner. Other charges are payable only if they are stated here: [[Other charges, or none]]

10. Accounts and reports

The Manager sends the Owner a statement every [[month]] showing the rent and other money received, the costs paid, the fees deducted and the money paid to the Owner, with the supporting documents on request. It keeps its records for the property for as long as the law that applies requires, and the Owner may inspect them on reasonable notice.

11. Insurance and liability

The Owner insures the building and its liability as owner and tells the Manager of the cover. The Manager holds liability insurance for its services with cover of at least [[Amount]].

The Manager is liable for loss that its own fault causes, but not for tenants’ failure to pay or for damage by tenants or third parties that it could not reasonably have prevented. Except for intent, gross negligence, personal injury or where the law does not allow a limitation, the Manager’s total liability under this agreement is limited to [[twelve months’ fees / Amount]].

12. Data and confidentiality

The Manager uses the personal data of tenants and applicants only to manage the property and to meet legal duties, shares it only with persons who need it for that purpose, keeps it only as long as needed and handles it as the law that applies to it requires. Each party keeps the other’s non-public information confidential and uses it only for this agreement.

13. Term and termination

This agreement starts on the effective date and runs for [[12]] months, after which it [[ends / renews year by year]]. Either party may end it by giving [[2]] months’ notice in writing or in electronic form, or at once if the other party seriously breaches it and does not remedy the breach within [[14]] days of being asked to.

When the agreement ends, the Manager hands over the keys, the records, the tenancy documents, the deposits it holds and the money due within [[30]] days, and sends a final statement. Existing tenancies continue with the Owner or a new manager.

14. Governing law and disputes

This agreement is governed by the law stated under Governing law. The parties will first try to settle any dispute in good faith. Otherwise the courts stated under Jurisdiction decide, unless mandatory law provides otherwise.

Payment terms

The Manager’s fees are deducted from the rent collected and shown in the monthly statement. Fees for services that are not paid from the rent are payable within [[14]] days of receiving the invoice, by bank transfer to the account stated on the invoice.

Governing law

[[Country or state whose law applies]]

Jurisdiction

[[Courts that decide disputes, e.g. the courts of your city]]