Property Management Agreement Outlines terms for property management services, including rent collection, maintenance, repairs, and management fees.
Owner hereby engages Manager, and Manager hereby agrees to perform for Owner, the property management services described in this Agreement, on and subject to the terms and conditions provided herein.
1.2. Property Management Services
Manager shall manage, operate, control, rent, lease, and maintain the Property in accordance with the services delineated hereunder:
(a) Collect all rents and other amounts due to Owner from tenants;
(b) Negotiate and execute leases, amendments, and renewals on behalf of Owner, provided such leases are subject to Owner's written approval;
(c) Serve notices, institute and prosecute evictions and other proceedings to recover possession of the Property;
(d) Engage and supervise, on Owner's behalf and at Owner's sole expense, cleaning, repair, maintenance, and other service providers;
(e) Establish and maintain a separate bank account in Manager's name as agent for Owner for the purpose of depositing all monies collected, and remit funds to Owner within a specified time;
(f) Prepare and provide Owner, on a monthly basis, a comprehensive written report detailing the financial and operational status of the Property, including rent collections and expenditures;
(g) Comply with all applicable federal, state, and local laws, ordinances, rules, and regulations governing the leasing, operation, and the ordinary course of business of residential real estate;
(h) Perform such additional duties as the Parties may agree upon, in writing, from time to time.
This Agreement shall be for an initial term of [Years] ("Initial Term"), commencing on the date first above written. Unless either party provides the other with written notice of its intent not to renew at least [Days] before the expiration of the Initial Term, this Agreement shall automatically renew for successive [Years] renewal terms (each, a "Renewal Term").
Either party may terminate this Agreement upon [Days] written notice to the other party, provided that such notice specifies the effective date of termination. Owner may terminate this Agreement immediately for cause if Manager fails to fulfill its obligations hereunder, with written notice of termination for cause specifying the reasons therefor.
(a) Provide Manager with all necessary keys, access cards, passwords, and any other items necessary to access the Property;
(b) Provide Manager with a copy of, and any amendments to, existing leases, property insurance policies, maintenance or service contracts, and any other documents or agreements deemed necessary by Manager to perform its responsibilities hereunder;
(c) Grant Manager full authority to act on Owner's behalf, in all matters related to the Property, including the authority to sign checks, pay expenses, and make disbursements on behalf of Owner, in accordance with this Agreement;
(d) Ensure that any required licenses, consents, or permits are obtained and maintained to allow the Property to be rented;
(e) Be responsible for any costs associated with correcting preexisting defects or violations of legal requirements or duty to third parties that existed before the commencement of this Agreement.
4.1. Management Fee
Owner shall pay Manager a management fee equal to [Percentage]% of the gross monthly rent collected from the Property during the term of this Agreement, payable monthly ("Management Fee").
4.2. Additional Charges
Owner shall reimburse Manager for any other reasonable, necessary, and documented expenses incurred by Manager on behalf of the Owner. Such expenses shall include, but shall not be limited to, third-party service provider charges, legal fees, and court costs, provided that Owner shall have given its prior written consent to such expenses.
Except for Manager's gross negligence or willful misconduct, Owner shall indemnify, defend, and hold Manager harmless, including its agents and employees, from and against any and all claims, liabilities, injuries, damages, costs, or expenses, including reasonable attorney's fees and court costs, arising out of or in connection with the Property, this Agreement, or the performance or nonperformance of Owner's or Manager's duties hereunder.
Manager is an independent contractor, and nothing in this Agreement shall be construed to create an employer-employee, principal-agent, or partnership relationship between the Parties.
All notices, requests, or other communications required or permitted hereunder shall be in writing and shall be deemed duly given if delivered personally, sent by email, or mailed by certified or registered mail, postage prepaid, to the addresses provided by the Parties in this Agreement, or to such other address as either party shall designate by notice given in accordance herewith.
This Agreement shall be governed by and construed in accordance with the laws of the United States and the laws of the State of [State], without regard to its conflict of laws principles. Any dispute arising out of or in connection with this Agreement shall be resolved through good faith negotiations, or, in the event that the Parties are unable to resolve the dispute through negotiation, then such dispute shall be submitted to binding arbitration in accordance with the rules of the American Arbitration Association. The arbitration proceeding shall take place in the city and state where the Property is located, and judgment upon the award rendered by the arbitrator may be entered in a court having jurisdiction thereof.
This Agreement, including Exhibit A (describing the Property), sets forth the entire understanding and agreement between the Parties, and supersedes all prior or contemporaneous negotiations, representations, understandings, or agreements, whether written or oral, relating to the subject matter hereof. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties.
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In this Property Management Agreement, you will see the following sections:
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