Property Management Agreement - Template, Sample Form Pro · US-law
✓ Valid in United States · drafted to comply with local law
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PROPERTY MANAGEMENT AGREEMENT
State of ________
RECITALS.
A. This Property Management Agreement (the "Agreement") is made and entered into effective as of ________ (the "Effective Date"), by and between the following party who owns the property (the "Owner"):
________
of
________
and the following party managing the rental of said property (the "Property Manager"):
________
of
________
holding real estate broker's license no. ________, where required by applicable state law.
The Owner and the Property Manager are referred to herein individually as a "Party" and collectively as the "Parties."
B. WHEREAS, the Owner desires to appoint the Property Manager to manage the property located at the following address:
________
C. WHEREAS, the Property Manager possesses the skills, expertise, and any licensure required to effectively manage the property and accepts the appointment to provide property management services on the terms set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
§ 1. DESCRIPTION OF PROPERTY.
1.1 The Owner is the lawful owner of the ________ (the "Property") located at the following address:
________
1.2 The Owner represents and warrants that it holds good and marketable title to, or has full legal authority over, the Property and the authority to enter into this Agreement.
§ 2. SERVICES PROVIDED.
2.1 The Owner hereby engages the Property Manager to provide the following property management services (the "Services"):
(a) Diligently managing the Property by renting, leasing, and operating the Property.
(b) Collecting all rents and other monies owed from each tenant (each, a "Tenant") as they become due. The Property Manager does not guarantee Tenant obligations. The Property Manager may employ collection agencies, attorneys, or other reasonable and lawful means to collect from a Tenant.
(c) Rendering to the Owner a monthly accounting of all rents received and expenses paid, and remitting to the Owner all income, less any sums properly paid out, on or before the ________ day of each month, provided that the corresponding rent has been received from the Tenant.
(d) Instituting, prosecuting, and settling, in the Owner's name and at the Owner's expense, actions for rent and for loss or damage to any part of the Property, subject to the Owner's prior written approval for any settlement.
(e) Maintaining, improving, and repairing the Property and engaging and supervising all contractors and others necessary to perform such work. All non-emergency improvements and repairs exceeding $________ shall require the Owner's prior written approval. The Property Manager shall not be personally liable for any damage to the Property caused by a Tenant or third party absent the Property Manager's negligence or willful misconduct.
(f) Advertising for, screening, and selecting Tenants in compliance with all applicable laws, including the federal Fair Housing Act (42 U.S.C. § 3601 et seq.), the Fair Credit Reporting Act (15 U.S.C. § 1681 et seq.), and all applicable state and local fair housing and landlord-tenant statutes.
(g) Setting rent prices that reasonably reflect market conditions, unless otherwise instructed in writing by the Owner.
(h) Receiving, holding, and disbursing security deposits and other Tenant funds in accordance with applicable state law, including any requirement to maintain such funds in a separate trust or escrow account.
(i) Maintaining a reserve fund of $________ (________) to pay for emergency expenses.
(j) The following additional responsibilities:
________
2.2 The Property Manager shall perform the Services in a professional and workmanlike manner and in compliance with all applicable federal, state, and local laws and regulations.
§ 3. TERM AND TERMINATION.
3.1 The term of this Agreement shall commence on the Effective Date and continue in full force and effect as set forth herein.
3.2 This Agreement shall remain in effect for the following initial term: ________, unless terminated earlier pursuant to the provisions of this Agreement. Thereafter, the term shall automatically renew for successive terms of the following length unless either Party terminates this Agreement by written notice delivered at least ________ days prior to the end of the then-current term: ________.
3.4 Upon termination, the Property Manager shall promptly deliver to the Owner all funds, records, keys, books, and documents pertaining to the Property and shall render a final accounting within ________ days of the effective date of termination.
§ 4. COMPENSATION.
4.1 For rendering the Services described in this Agreement, the Owner shall pay to the Property Manager compensation of $________ (________) per hour of Service provided, as set forth in a detailed invoice furnished by the Property Manager to the Owner.
4.2 The Owner shall have seven (7) days from receipt of an invoice to pay the amount due. Failure to pay by such deadline shall constitute a breach of this Agreement.
4.3 The Owner shall pay the Property Manager ________% of the first full month of rent collected for each Tenant procured by the Property Manager.
4.4 The Owner shall pay the Property Manager ________% of all rents and fees collected from Tenants.
4.5 For any payment not paid when due, the Owner shall pay a late fee of $________ (________), to the extent permitted by applicable law.
4.6 The Property Manager is authorized to deduct its compensation and approved expenses from rents and other monies collected on behalf of the Owner, with the balance remitted to the Owner in accordance with § 2.1(c).
§ 5. PROPERTY MANAGER LIABILITY AND INDEMNIFICATION.
5.1 The Owner agrees to indemnify, defend, and hold the Property Manager harmless from and against any claims, charges, debts, demands, liabilities, and lawsuits arising out of the management of the Property, except to the extent arising from the Property Manager's negligence, willful misconduct, or breach of this Agreement.
5.2 The Owner agrees to pay the Property Manager's reasonable attorney's fees and costs related to the management of the Property and any liability for injury occurring on the Property, subject to the limitation in § 5.1.
5.3 The Property Manager shall not be liable for the nonpayment or theft of any service, including utilities, by a Tenant.
5.4 The Owner agrees to maintain sufficient property and liability insurance and shall name the Property Manager as an additional insured. The Owner shall provide a certificate or copy of the insurance policy to the Property Manager and shall maintain such coverage throughout the term of this Agreement.
§ 6. OWNER RESPONSIBILITIES.
6.1 The Owner shall provide the Property Manager with all documents, records, and information necessary to enable the Property Manager to perform the Services under this Agreement.
6.2 The Owner shall maintain the Property in a habitable condition consistent with applicable warranty-of-habitability requirements and shall promptly reimburse the Property Manager for any approved expenses incurred in connection with the management, maintenance, or repair of the Property.
§ 7. INDEPENDENT CONTRACTOR.
7.1 The Property Manager is an independent contractor and not an employee, partner, or agent of the Owner, except as expressly authorized under this Agreement.
7.2 Nothing in this Agreement shall be construed to create a partnership, joint venture, or employment relationship between the Parties. The Property Manager shall be solely responsible for the payment of all taxes and other obligations arising from the compensation received under this Agreement.
§ 8. DEFAULT.
8.1 The occurrence of any of the following shall constitute a material default under this Agreement:
(a) The failure to make a required payment when due.
(b) The failure to make available or deliver the Services in the time and manner provided for in this Agreement.
§ 9. REMEDIES.
9.2 Such notice shall describe with sufficient detail the nature of the default.
9.3 The Party receiving such notice shall have seven (7) days from the effective date of such notice to cure the default(s). Unless waived by the Party providing notice, the failure to cure the default(s) within such time period shall result in automatic termination of this Agreement.
§ 10. FORCE MAJEURE.
10.1 Neither Party shall be held liable for any failure to perform its obligations under this Agreement where such failure is due to any of the following: acts or regulations of public authorities, labor strikes, pandemic, acts of God, war, terrorism, or any other legitimate cause beyond the reasonable control of the affected Party.
§ 11. ENTIRE AGREEMENT.
11.1 This Agreement contains the entire agreement of the Parties, and there are no other promises or conditions in any other agreement, whether oral or written, concerning the subject matter of this Agreement.
11.2 This Agreement supersedes any prior written or oral agreements between the Parties.
§ 12. SEVERABILITY.
12.1 If any provision of this Agreement is held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable.
12.2 If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.
§ 13. AMENDMENT.
13.1 This Agreement may be modified or amended only in writing, signed by the Party against whom enforcement of the modification or amendment is sought.
§ 14. GOVERNING LAW AND VENUE.
14.1 This Agreement shall be governed by and construed in accordance with the laws of the State of ________, without regard to its conflict-of-laws principles.
14.2 The Parties agree that any action or proceeding arising out of or relating to this Agreement shall be brought exclusively in the state or federal courts located in ________ County, State of ________, and each Party consents to the personal jurisdiction of such courts.
§ 15. NOTICE.
15.1 Any notice or communication required or permitted under this Agreement shall be sufficiently given if delivered in person or by certified mail, return receipt requested, to the address set forth in the opening paragraph of this Agreement or to such other address as one Party may furnish to the other in writing.
§ 16. WAIVER OF CONTRACTUAL RIGHTS.
16.1 The failure of either Party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that Party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.
§ 17. ASSIGNMENT.
17.1 Neither Party may assign or transfer its rights or obligations under this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld.
IN WITNESS WHEREOF, the Parties hereto, individually or by their duly authorized representatives, have executed this Agreement as of the Effective Date first written above.
EXECUTION:
_________________________________
________, Owner
_________________
Date
_________________________________
________, Property Manager
_________________
Date
ACKNOWLEDGMENT
State of ________
County of ________
On this ________, before me, the undersigned notary public, personally appeared ________, proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the foregoing instrument, and acknowledged that they executed the same for the purposes therein contained.
_________________________________
Notary Public
My commission expires: ________
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