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Real Estate Property Management Agreement template
Real Estate Property Management Agreement sample


What is Real Estate Property Management Agreement?

Real Estate Property Management Agreement An agreement for property management services, specifying property management responsibilities, fees, maintenance, and tenant-related matters for real estate properties.



Sample template:



REAL ESTATE PROPERTY MANAGEMENT AGREEMENT


This Real Estate Property Management Agreement (the "Agreement") is entered into as of [Date], by and between Summit Real Estate Holdings, Inc., a [State] corporation ("Owner"), and Prestige Management Services, LLC, a [State] limited liability company ("Manager").

WITNESSETH:

WHEREAS, Owner is the owner of a certain residential property located at 789 Pine Street, Cityville, USA, consisting of a multi-unit apartment complex with 24 individual units (the "Property"); and

WHEREAS, Owner desires to engage Manager to provide property management services with respect to the Property, and Manager desires to provide such services, all as more particularly described in this Agreement.

NOW, THEREFORE, in consideration of the premises, covenants, and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Appointment of Manager

The Owner hereby irrevocably appoints Manager as the exclusive agent for the management, operation, and leasing of the Property during the term of this Agreement, and Manager hereby accepts such appointment and agrees to perform all such duties as a property manager as hereinafter set forth.



2. Term

This Agreement shall commence on the date first above written and continue for a term of one (1) year, and shall automatically renew for successive one (1) year terms unless either party provides written notice of its intent not to renew at least sixty (60) days prior to the end of the then-current term.



3. Property Management Services

3.1. Maintenance and Repair


Manager shall be responsible for the general maintenance and repair of the Property in order to keep it in good condition. Manager shall obtain Owner's prior written approval for any non-emergency maintenance or repairs exceeding $500. In the case of emergencies, Manager shall have the authority to undertake maintenance or repairs without prior approval, but shall notify the Owner as soon as reasonably practicable.



3.2. Tenant Relations


Manager shall be responsible for all aspects of tenant relations related to the Property, including tenant screening and background checks, negotiation and execution of lease agreements, collection of rent and security deposits, handling of tenant complaints and issues, and initiation of eviction processes if necessary.



3.3. Financial Management


Manager shall maintain accurate and complete financial records for the Property, including income and expense statements, and provide monthly financial reports to Owner. Manager shall deposit all rent collections into a bank account designated by Owner and remit the net income to Owner on a monthly basis.



4. Fees and Expenses

Owner shall pay Manager a monthly management fee equal to [Percentage]% of the gross rental income received during each calendar month for services performed pursuant to this Agreement. Manager shall be entitled to charge and retain all late fees, application fees, and other administrative fees collected from tenants.


Owner shall also be responsible to reimburse Manager for all reasonable, out-of-pocket expenses incurred by Manager on behalf of Owner in connection with the performance of Manager's duties under this Agreement, including, but not limited to, post office expenses, advertising costs, and the like.



5. Indemnification

Owner shall indemnify, defend and hold Manager harmless from and against any and all liabilities, claims, demands, damages, judgments, costs, and expenses, including reasonable attorney's fees, arising out of or related to the performance of Manager's duties under this Agreement, except to the extent caused by Manager's gross negligence or willful misconduct.



6. Insurance

Owner shall maintain adequate property and liability insurance for the Property, and shall name Manager as an additional insured under such policies. Manager shall maintain its own commercial general liability and errors and omissions insurance. Each party shall provide the other with certificates of insurance evidencing such coverage upon request.



7. Termination

Either party may terminate this Agreement without cause upon sixty (60) days' written notice to the other party. In the event of a breach of this Agreement, the non-breaching party may terminate this Agreement upon thirty (30) days' written notice and an opportunity to cure the breach during such 30-day period.



8. Governing Law; Venue

This Agreement shall be governed by and construed in accordance with the laws of the United States and the State where the Property is located. Any legal action arising out of or relating to this Agreement shall be brought in the federal or state courts located in the State where the Property is located.



9. Entire Agreement

This Agreement constitutes the entire understanding and agreement of the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements or understandings, inducements, or conditions, express or implied, written or oral, between the parties concerning such subject matter.



IN WITNESS WHEREOF, each of the parties has executed this Agreement, in duplicate, as of the date first above written.

SUMMIT REAL ESTATE HOLDINGS, INC.
By: ________________________
Name: ______________________
Title: ______________________

PRESTIGE MANAGEMENT SERVICES, LLC
By: ________________________
Name: ______________________
Title: ______________________

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Main Sections of a Real Estate Property Management Agreement


In this Real Estate Property Management Agreement, you will see the following sections:

  1. Appointment of Manager
  2. Term
  3. Property Management Services
  4. Fees and Expenses
  5. Indemnification
  6. Insurance
  7. Termination
  8. Governing Law; Venue
  9. Entire Agreement


About each Section - Analysis and Summary:

  1. Appointment of Manager: This section establishes the relationship between the property owner and the property manager. The owner appoints the manager as their exclusive agent to manage, operate, and lease the property during the agreement's term.

  2. Term: This section outlines the duration of the agreement. It starts on a specific date and lasts for one year, with automatic renewals for additional one-year terms unless either party provides written notice of their intent not to renew at least 60 days before the current term ends.

  3. Property Management Services: This section details the specific services the manager will provide, including maintenance and repair, tenant relations, and financial management. It also outlines the approval process for non-emergency maintenance or repairs and the manager's authority in emergency situations.

  4. Fees and Expenses: This section explains the compensation the manager will receive for their services, including a monthly management fee based on a percentage of the gross rental income. It also states that the owner is responsible for reimbursing the manager for reasonable, out-of-pocket expenses related to their duties.

  5. Indemnification: This section protects the manager from any liabilities, claims, or expenses arising from their duties under the agreement, except in cases of gross negligence or willful misconduct. In other words, the owner agrees to cover the manager's legal costs and damages if they are sued because of their work on the property.

  6. Insurance: This section requires both parties to maintain appropriate insurance coverage. The owner must have property and liability insurance for the property, while the manager must have commercial general liability and errors and omissions insurance. Both parties must provide proof of insurance upon request.

  7. Termination: This section outlines the process for ending the agreement. Either party can terminate without cause by providing 60 days' written notice. If there is a breach of the agreement, the non-breaching party can terminate with 30 days' written notice and an opportunity for the breaching party to fix the issue.

  8. Governing Law; Venue: This section states that the agreement is governed by the laws of the United States and the state where the property is located. Any legal disputes related to the agreement must be resolved in the federal or state courts of that state.

  9. Entire Agreement: This section clarifies that the agreement represents the entire understanding between the parties and supersedes any previous agreements or understandings related to the property management services. Any changes to the agreement must be made in writing and signed by both parties.

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