Free Property Management Agreement

A Property Management Agreement is a legal document between a property owner and a property manager.

When you hire someone to manage your properties, you want to ensure they keep your quality standards. 

This agreement outlines your expectations and other critical details to manage the property.

A property management contract covers all the manager or management company’s responsibilities to the owner.

Putting these details in writing makes them legally enforceable and clarifies the business relationship. 

What is a Property Management Agreement?

A property management agreement is a contract between a property owner and a property manager.

Whether the manager is a person or a property management company, you need a document that outlines your agreement’s essential details.

A property management agreement is a legally binding document. It supersedes oral agreements and creates legally enforceable promises between two parties. 

Why do you need a Property Management Agreement?

Landlords have a lot of responsibilities and often many properties. As one yourself, you probably know that you need more time to manage everything yourself.

This is where a property manager is accommodating.

You need a property management agreement because you want a legally enforceable contract that defines your business relationship.

Landlords want to know that managers will do the job the way the landlords wish them to. A landlord also needs the ability to enforce standards if there is ever a dispute.

When do you use a Property Management Agreement?

You should have a property management agreement to protect you whenever you hire a property manager or company.

You may choose to use a property manager when:

• You own more properties than you can manage by yourself
• You do not want to control the properties yourself
• You want to delegate specific management tasks

What to include in a Property Management Agreement?

The property management agreement should outline the expectations and understandings of the landlord and the property manager.

It should delineate who is responsible for what aspects of the business and other critical information. 

This may include, but is not limited to:

• Contact information for both parties
• Repairs and maintenance duties
• Payment of expenses
• Advertising duties
• Rental or leasing duties
• Reporting requirements by the property manager
• Available dispute resolution methods
• Compensation for the property manager

You should write this and other important information in the property management agreement.

A property management agreement protects your rights as a landlord. It gives you legal authority to outline your expectations and the duties of the manager you hired.

You can create a property management agreement to help you get started — customize a contract that fits your needs.