Property Management Agreement
Use our property management agreement to outline terms and responsibilities for the day-to-day management of your rental properties.
- New York (change)
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 he or she keeps your quality standards.
This agreement outlines what you expect and other critical details to manage the property.
A property management contract covers all the responsibilities the manager or management company takes on for 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 incredibly helpful.
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?
Any time you hire a property manager or company, you should have a property management agreement to protect you.
You may choose to use a property manager when:
- You own more properties than you can manage by yourself
- You do not want to manage the properties yourself
- You want to delegate specific management tasks
Whatever reason you use a property manager, you want an agreement to outline the rights and duties of each party. This can make a significant difference if there is ever a dispute.
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.
How to Write a Property Management Agreement
Follow the steps below to write a property management agreement.
Step 1 – Fill In Effective Date
Write the effective date of the property management agreement.
Step 2 – Enter Owner and Agent Details
Provide the property owner and agent’s full name.
Step 3 – Write Property Address
State the physical street address of the managed property.
Step 4 – Identify Term
Specify the term or length of the property management agreement. Write the start and end dates.
Step 5 – Outline Agent Responsibilities
Confirm all lawful things the owner asks the manager to do in fulfillment of the agreement, such as monthly accounting and handling repairs.
Step 6 – Enter Compensation Details
Explain how the owner compensates the manager as a percentage of the rent, a monthly management fee, or other payment.
Step 7 – Document Termination Requirement
Explain when either party may terminate the agreement.
Step 8 – Specify Governing Law
Identify the state law that governs the property management agreement and note how parties shall handle dispute resolution.
Sample Property Management Agreement