What to include in your property management agreement.
Every property management agreement is different, but here’s a list of information to include when you draft your own:
- Include an introduction with identifying information, like contact info for all parties and the date the agreement is signed.
- Outline the services a property manager agrees to perform with prior approval, such as collect rent, advertise to new tenants, and handle evictions.
- Identify the management fees, and determine whether those are payable as a percentage, a flat fee, or on a case-by-case basis.
- List the property owner’s restrictions and responsibilities, including the setup and maintenance of a reserve fund for daily operations and emergencies and an outline of the insurance coverage.
- Spell out the stance the property takes on fair housing under the applicable laws of the state.
- Include a clause about liability insurance, protecting the property manager except in cases of extreme negligence. The property manager is not responsible for the negligence of independent contractors that they hire.
- Identify the duration of the contract. For most management services, a year-long contract is standard.
- Add a cancellation clause clearly stating when and why the property manager and property owner each has the right to terminate the contract.
There are multiple elements within the termination clause: notice to terminate, an early termination fee, a reason to terminate, and obligations upon termination. Each of these goes far in specifying how the termination of this agreement will unfold, including determining how many days’ notice the property manager must give before terminating their contract and in which cases their fee for early termination is required.
Additional details for more complex arrangements.
Produce property management agreements digitally.
With Adobe Acrobat Pro, you can:
E-signed, sealed, and delivered.
With Acrobat Pro, it’s intuitive and straightforward to get your property management agreement signed. Of course, when either signing or preparing a document like this, reach out for legal advice before ensuring that all provisions of this agreement meet your expectations.