Property Manager Contract Template Pdf

PROPERTY MANAGER CONTRACT TEMPLATE PDF

1. Document Preamble & Recitals

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

OWNER: [Owner/Entity Name], a [State of Organization and Entity Type, e.g., Delaware corporation / individual], having its principal place of business/residence at [Owner Address] ("Owner"), and

PROPERTY MANAGER: [Manager/Entity Name], a [State of Organization and Entity Type, e.g., Delaware corporation], having its principal place of business at [Manager Address] ("Property Manager").

RECITALS

WHEREAS, Owner is the fee simple owner or lawful lessee with the authority to lease and manage that certain real property located at [Property Street Address, City, State, Zip] (the "Property"); and

WHEREAS, Owner desires to retain Property Manager to provide comprehensive property management, operational, leasing, and maintenance services for the Property, and Property Manager desires to accept such retention under the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants, promises, and conditions contained herein, and for other good and valuable consideration, the receipt and legal 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 interest of such entity.
2. "Applicable Law" means all federal, state, county, and municipal statutes, codes, ordinances, regulations, rules, orders, and decrees of any governmental or quasi-governmental authority having jurisdiction over the Property or the operations conducted thereon.
3. "Available Funds" means all gross revenues collected from the operation of the Property, less operating expenses, debt service (if applicable), reserves, and management fees paid or reserved pursuant to the approved Annual Operating Budget.
4. "Default" means the material breach of any covenant, term, condition, or representation contained in this Agreement, or the failure to perform any obligation within the specified cure period following notice thereof.
5. "Gross Receipts" means all monies, revenues, rents, issues, and profits collected from tenants, licensees, concessionaires, or other occupants of the Property, including security deposits (to the extent forfeited or applied), parking fees, laundry income, and utility reimbursements.
6. "Operating Account" means the segregated, federally insured bank account established by Property Manager in the name of Owner, or jointly, into which all Gross Receipts are deposited and from which operating expenses are disbursed.
7. "Property Manager" means [Manager/Entity Name], its permitted successors, and assigns.
8. "Reserve for Replacements" means the capital reserve fund established by Owner for capital expenditures, major repairs, and structural improvements, as designated in the Annual Operating Budget.

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3. Substantive Terms & Obligations

3.1 Appointment and Authority

Owner hereby grants to Property Manager the exclusive right and sole authority to manage, operate, lease, and maintain the Property, subject to the terms of this Agreement. Property Manager accepts such appointment and agrees to use commercially reasonable efforts, professional diligence, and industry-standard practices in the execution of its duties.

3.2 Leasing and Tenant Relations

1. Marketing and Advertising: Property Manager shall market vacant spaces, list the Property on relevant listing services, conduct advertising campaigns, and display leasing signage in compliance with Applicable Law.
2. Tenant Screening: Property Manager shall screen prospective tenants through credit checks, criminal background checks, rental history verification, and employment/income verification. Final approval of any lease shall rest with [Owner / Property Manager].
3. Execution of Leases: Property Manager is authorized to negotiate, execute, renew, modify, and terminate residential and commercial leases on behalf of Owner, provided such leases conform to standard lease templates approved in writing by Owner.

3.3 Rent Collection and Financial Management

1. Collection of Revenues: Property Manager shall use diligent efforts to collect all rent, fees, and other charges due from tenants. All collected funds shall be deposited into the Operating Account within [Number, e.g., 3] business days of receipt.
2. Disbursements: Property Manager is authorized to pay from the Operating Account all operational expenses, utility charges, maintenance costs, insurance premiums (if authorized), and property taxes (if authorized), provided sufficient funds are available.
3. Financial Reporting: Property Manager shall deliver to Owner, no later than the [Day, e.g., 15th] day of each calendar month, a comprehensive accounting report for the preceding month, including an income statement, balance sheet, rent roll, accounts receivable aging report, and reconciliation of the Operating Account.

3.4 Maintenance, Repairs, and Capital Improvements

1. Routine Maintenance: Property Manager shall maintain the Property in a clean, safe, and habitable condition, performing routine cleaning, landscaping, pest control, and minor repairs.
2. Emergency Repairs: Property Manager is authorized to incur immediate expenses for emergency repairs necessary to preserve the Property, prevent injury to persons or property, or comply with Applicable Law, regardless of cost limits, provided Property Manager notifies Owner within [Number, e.g., 24] hours.
3. Contract Thresholds: Except for emergencies, Property Manager shall not bind Owner to any single contract or expenditure exceeding [Dollar Amount, e.g., $5,000.00] without the prior written consent of Owner.

3.5 Compensation and Fees

1. Management Fee: Owner shall pay Property Manager a monthly management fee equal to [Percentage, e.g., 6%] of the Gross Receipts collected during the preceding calendar month, or a flat fee of [Dollar Amount, e.g., $1,500.00], whichever is greater.
2. Leasing Commission: For each new lease executed, Owner shall pay Property Manager a leasing commission equal to [Percentage, e.g., 50% of one month’s rent / One month’s rent]. For lease renewals, Owner shall pay [Dollar Amount or Percentage].
3. Payment Timing: Management fees shall be deducted directly by Property Manager from the Operating Account on the [Day, e.g., 10th] day of each month following the collection of rents.

3.6 Representations and Warranties

1. Property Manager Warranties: Property Manager represents and warrants that it holds all necessary real estate broker licenses, permits, and credentials required by Applicable Law to perform the services contemplated herein; that it is duly organized and in good standing; and that its execution of this Agreement does not violate any other contractual obligation.
2. Owner Warranties: Owner represents and warrants that it holds legal title or lawful leasehold interest with full authority to enter into this Agreement; that the Property complies with all Applicable Laws (or that Owner will remediate non-compliance); and that the Property is free from any encumbrances that would materially impair Property Manager's performance.

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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 Default under this Agreement:

1. Failure to Pay: Failure of Owner to pay any management fee, reimbursement, or undisputed sum within [Number, e.g., 10] business days after receipt of written demand;
2. Failure to Perform: Failure of either Party to observe, keep, or perform any other material term, covenant, or condition of this Agreement;
3. Bankruptcy/Insolvency: The filing of a petition in bankruptcy or insolvency, reorganization, assignment for the benefit of creditors, or appointment of a receiver for the assets of either Party; or
4. License Revocation: The suspension, revocation, or lapse of Property Manager’s professional real estate license or corporate good standing.

4.2 Notice and Cure Periods

Except as otherwise provided herein, a Party claiming a Default shall give written notice to the defaulting Party specifying the exact nature of the alleged Default. The defaulting Party shall have a period of thirty (30) business days from receipt of such notice to cure said Default. If the Default cannot reasonably be cured within thirty (30) business days using diligent efforts, the cure period shall be extended for an additional [Number, e.g., 30] days, provided the defaulting Party commences curing promptly and proceeds continuously and diligently.

4.3 Termination Rights

1. Termination for Cause: If a Default is not cured within the applicable cure period set forth in Section 4.2, the non-defaulting Party may terminate this Agreement immediately upon written notice to the defaulting Party.
2. Termination Without Cause: Owner may terminate this Agreement without cause at any time by providing sixty (60) days’ prior written notice to Property Manager. Property Manager may terminate this Agreement without cause upon providing sixty (60) days’ prior written notice to Owner.

4.4 Obligations Upon Termination

Upon the effective date of termination of this Agreement:

1. Property Manager shall immediately cease all management operations, except as necessary to wind down affairs orderly.
2. Property Manager shall deliver to Owner all keys, access codes, books, records, tenant files, unexecuted leases, and bank account credentials pertaining to the Property within [Number, e.g., 5] business days.
3. Property Manager shall render a final accounting report and transfer all balances remaining in the Operating Account (net of accrued management fees, legitimate expenses, and reasonable reserves for outstanding liabilities) to Owner.

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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 Property Manager with respect to the subject matter hereof and supersedes all prior oral or written agreements, negotiations, commitments, and understandings between the Parties. No modification, amendment, or waiver of any provision shall be valid unless executed in writing by both Parties.

5.3 Force Majeure

Neither Party shall be liable for any failure or delay in performing its obligations under this Agreement if such failure or delay arises from causes beyond its reasonable control, including acts of God, natural disasters, epidemics, pandemics, war, terrorism, civil unrest, labor strikes, utility failures, or governmental restrictions (each a "Force Majeure Event"). The affected Party shall notify the other Party promptly and use commercially reasonable efforts to mitigate the impact of the Force Majeure Event.

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 consents to the exclusive jurisdiction and venue of the state and federal courts located in [County], [State], for any legal action arising out of or relating to this Agreement.

5.5 Dispute Resolution

1. Negotiation: In the event of any dispute, controversy, or claim arising out of or relating to this Agreement, the designated representatives of Owner and Property Manager shall attempt in good faith to resolve such dispute through direct business negotiation for a period of [Number, e.g., 15] business days.
2. Binding Arbitration: If the dispute is not resolved through negotiation, it shall be settled by binding arbitration administered by the [Arbitration Body, e.g., American Arbitration Association / JAMS] in accordance with its commercial arbitration rules. The place of arbitration shall be [City, State]. The arbitrator’s award shall be final and binding, and judgment upon the award rendered may be entered in any court having jurisdiction thereof. The prevailing party in any such arbitration or litigation shall be entitled to recover its reasonable attorney's fees and costs.

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6. Formal Execution Block

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

OWNER:

[Owner/Entity Name]

By: _________________________________________
Name: [Signatory Name]
Title: [Signatory Title]
Date: [Date]

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PROPERTY MANAGER:

[Manager/Entity Name]

By: _________________________________________
Name: [Signatory Name]
Title: [Signatory Title]
Date: [Date]