Property Management Contract Templates

PROPERTY MANAGEMENT CONTRACT TEMPLATES

1. DOCUMENT PREAMBLE & RECITALS

THIS PROPERTY MANAGEMENT CONTRACT (the "Agreement") is entered into and made effective as of this [Day] day of [Month], [Year] (the "Effective Date"), by and between:

OWNER: [Full Legal Name of Property Owner / Entity], having its principal place of residence or registered office at [Owner Address] (hereinafter referred to as the "Owner"), and

AGENT: [Full Legal Name of Management Company / Entity], a [State of Incorporation/Organization] [Corporation / LLC / Partnership], having its principal place of business at [Agent Address] (hereinafter referred to as the "Agent").

RECITALS

WHEREAS, Owner is the lawful fee simple owner or authorized master lessee of certain real property located at [Property Street Address, City, State, Zip Code], more particularly described in Exhibit A attached hereto (the "Property"); and

WHEREAS, Owner desires to retain Agent to exclusively manage, operate, maintain, and lease the Property, and Agent desires to accept such retention under the terms and conditions set forth hereinafter; and

WHEREAS, Agent possesses the requisite commercial expertise, professional licensure, and operational infrastructure necessary to execute the management duties contemplated herein.

NOW, THEREFORE, in consideration of the mutual covenants, promises, and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby mutually acknowledged, the Parties agree as follows:

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2. OPERATIONAL DEFINITIONS

For purposes of this Agreement, the following terms shall have the meanings ascribed below, and such definitions shall apply equally to the singular and plural forms of the terms defined:

1. "Affiliate" means any legal entity directly or indirectly controlling, controlled by, or under common control with a Party, where "control" means the ownership of more than fifty percent (50%) of the voting securities or equity interests of such entity.
2. "Applicable Law" means all federal, state, county, and municipal statutes, codes, ordinances, regulations, administrative rulings, and judicial decrees applicable to the leasing, operation, maintenance, and safety of the Property.
3. "Disbursement Account" means the segregated, insured financial account established by Agent pursuant to Section 3.2 for the deposit of all Gross Receipts and the payment of Operating Expenses.
4. "Force Majeure Event" means any act of God, war, terrorism, civil unrest, natural disaster, epidemic, pandemic, governmental embargo, utility failure, or other catastrophic event beyond the reasonable control of the affected Party, which renders performance commercially impracticable.
5. "Gross Receipts" means all rents, security deposits, application fees, laundry proceeds, parking revenues, utility reimbursements, and any other cash inflows collected from the operation of the Property.
6. "Management Fee" means the compensation payable to Agent for its services hereunder, as calculated and defined in Section 3.4.
7. "Operating Expenses" means all reasonable, necessary, and documented costs incurred by Agent in the day-to-day operation, maintenance, repair, and administration of the Property in accordance with the Approved Budget.
8. "Property" means the real property described in the Preamble, including all structures, improvements, fixtures, appurtenances, and personal property owned by Owner located thereon.
9. "Tenant" means any individual or entity occupying any portion of the Property pursuant to a valid Lease Agreement executed by Agent or Owner.

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3. SUBSTANTIVE TERMS & OBLIGATIONS

3.1 Appointment and Authority

Owner hereby grants to Agent the exclusive right and authority to manage, lease, and operate the Property, and Agent hereby accepts such appointment. Agent shall act as the sole managing agent for the Property, possessing the legal authority to negotiate, execute, enforce, and terminate residential and/or commercial leases; collect all rents and other sums due; institute legal proceedings for the eviction of tenants and recovery of damages; contract for and supervise maintenance, repairs, and utilities; and hire, supervise, and discharge on-site personnel as reasonably required.

3.2 Financial Management and Accounts

Agent shall establish a separate, insured custodial trust account (the "Disbursement Account") in a federally insured financial institution, distinct from Agent's corporate accounts, into which all Gross Receipts shall be deposited. Agent shall not commingle Owner’s funds with Agent's operational funds. Agent is authorized to pay from the Disbursement Account all verified Operating Expenses, debt service (if expressly authorized in writing), taxes, insurance premiums, and the Management Fee. Agent shall provide Owner with a monthly accounting statement detailing all cash inflows and outflows within thirty (30) days following the close of each calendar month.

3.3 Maintenance, Repairs, and Capital Improvements

Agent shall maintain the Property in a clean, safe, and habitable condition in compliance with all Applicable Law. Agent is authorized to expend up to [Dollar Amount, e.g., $1,000] for any single emergency repair necessary to protect the structural integrity of the Property or prevent injury to persons, without prior Owner approval. For non-emergency repairs or maintenance items exceeding [Dollar Amount], Agent shall obtain prior written approval from Owner, except where required by Applicable Law to maintain habitability.

3.4 Compensation and Fee Structure

As full consideration for the services rendered under this Agreement, Owner shall pay Agent a Management Fee calculated as:

• Option A: [Percentage, e.g., 8]% of the Gross Receipts collected each calendar month.
• Option B: A flat fee of [Dollar Amount] per calendar month.
• Option C: A leasing commission equal to [Percentage/Amount] of the first month's rent for each new executed Lease Agreement. The Management Fee shall be deducted directly by Agent from the Disbursement Account concurrent with the issuance of the monthly accounting statement.

3.5 Representations and Warranties

Owner represents and warrants that: (a) Owner possesses unencumbered legal title or lawful authority to lease the Property; (b) the Property is in compliance with all Applicable Law; (c) no hazardous materials or environmental contaminants exist on the Property in violation of law; and (d) Owner has secured and shall maintain comprehensive general liability insurance naming Agent as an additional insured. Agent represents and warrants that: (a) Agent is duly organized, validly existing, and licensed to perform real estate management services within [Jurisdiction]; and (b) Agent shall maintain professional liability (errors and omissions) and fidelity bond insurance throughout the Term.

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4. DEFAULT, TERMINATION, AND REMEDIES

4.1 Events of Default

The occurrence of any of the following shall constitute a material breach and "Event of Default" under this Agreement:

1. Failure by Owner to pay any Management Fee, reimbursement, or required operational funding within ten (10) calendar days following receipt of written demand.
2. Failure by Agent to remit collected Gross Receipts to Owner or deposit funds into the Disbursement Account in accordance with Section 3.2.
3. Material breach by either Party of any covenant, representation, or warranty contained herein, which remains uncured following notice.
4. Filing of a petition in bankruptcy or insolvency by or against either Party, or the appointment of a receiver for all or substantially all of a Party's assets.

4.2 Notice and Cure Periods

In the event of any default under this Agreement, the non-defaulting Party shall provide written notice to the defaulting Party specifying the exact nature of the default. The defaulting Party shall have a period of thirty (30) business days from the receipt of such notice to cure said default (the "Cure Period"). If the default is incapable of being cured within thirty (30) business days through the exercise of commercially reasonable diligence, but the defaulting Party has commenced and is diligently pursuing a cure, the Cure Period shall be extended for an additional period not to exceed sixty (60) calendar days.

4.3 Termination Rights

• Termination for Cause: If an Event of Default remains uncured upon the expiration of the applicable Cure Period, the non-defaulting Party may terminate this Agreement immediately upon written notice.
• Termination Without Cause: Either Party may terminate this Agreement without cause upon providing [Number, e.g., 60] days prior written notice to the other Party.

4.4 Obligations Upon Termination

Upon the effective date of termination of this Agreement:

1. Agent shall deliver to Owner all keys, security deposits, lease agreements, books, records, and financial accounts pertaining to the Property within ten (10) business days.
2. Agent shall render a final accounting statement and disburse any remaining balance in the Disbursement Account to Owner, after deducting all accrued and unpaid Management Fees, legitimate expenses, and reasonable reserves for pending obligations.
3. Owner shall assume all outstanding contracts and vendor agreements entered into by Agent on behalf of the Property, provided such contracts were authorized under this Agreement or the Approved Budget.

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5. BOILERPLATE LEGAL PROVISIONS

5.1 Severability

If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, such provision shall be modified to the minimum extent necessary to make it valid and enforceable. If modification is not possible, the provision shall be deemed excised, and the remaining provisions of this Agreement shall remain in full force and effect.

5.2 Entire Agreement

This Agreement, including any attached exhibits, schedules, and addenda, constitutes the entire agreement between Owner and Agent pertaining to the subject matter hereof and supersedes all prior contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless executed in writing by both Parties.

5.3 Force Majeure

Neither Party shall be held liable for any failure or delay in performance under this Agreement (other than the obligation to pay money) to the extent such failure or delay is caused by a Force Majeure Event. The affected Party shall promptly notify the other Party in writing upon the occurrence of a Force Majeure Event and shall use commercially reasonable efforts to mitigate its effects.

5.4 Governing Law and Jurisdiction

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of [Jurisdiction], without regard to its conflict of laws principles. Each Party irrevocably submits to the exclusive jurisdiction of the state and federal courts located in [County] County, [State]`, for the resolution of any dispute arising out of or relating to this Agreement.

5.5 Dispute Resolution

Any controversy, claim, or dispute arising out of or relating to this Agreement, or the breach thereof, shall be settled first by good-faith executive negotiation between the Parties. If such negotiations fail to resolve the dispute within thirty (30) days, the matter shall be submitted to binding arbitration administered by [Arbitration Body, e.g., the American Arbitration Association] in accordance with its commercial arbitration rules. Judgment upon the award rendered by the arbitrator(s) may be entered in any court having jurisdiction thereof. The prevailing party in any legal action or arbitration shall be entitled to recover reasonable attorneys' fees, expert witness fees, and costs.

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6. FORMAL EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties hereto have caused this Property Management Contract to be duly executed by their respective authorized officers or representatives as of the Effective Date written above.

OWNER:

[Full Legal Name of Owner / Entity]

By: _________________________________________
Name: [Authorized Signatory Name]
Title: [Signatory Title, e.g., Managing Member / Individual]
Date: [Date of Execution]

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AGENT:

[Full Legal Name of Management Company]

By: _________________________________________
Name: [Authorized Signatory Name]
Title: [Signatory Title, e.g., President / CEO]
Date: [Date of Execution]