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Community Management Agreement

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Community Management Agreement

THIS COMMUNITY MANAGEMENT AGREEMENT (the "Agreement") is entered into as of Effective Date: by and between Manager Name: , a business with principal address and Association Name: , with principal address .

Recitals

WHEREAS, the Association operates or governs a residential community and requires professional management services to administer operations, financial management, vendor oversight, and resident relations; and

WHEREAS, the Manager represents that it has the experience, personnel, licensing and resources necessary to provide community management services and agrees to perform such services pursuant to the terms set forth in this Agreement.

WHEREAS, the parties desire to set forth their respective duties, compensation, term and other terms and conditions in writing.

Scope of Work

The Manager shall provide professional management services that shall include, without limitation, financial administration, budget preparation and monitoring, assessment billing and collection, supervision of on‑site personnel and vendors, enforcement of governing documents, routine inspections, and reporting to the Association’s board of directors. Specific duties, performance standards, and deliverables are set forth in the Detailed Services to Be Provided field above and shall be considered an integral part of this Agreement.

Payment Terms

Manager shall submit invoices to Association at the intervals set forth above. Amounts are due and payable within days of invoice receipt. All undisputed fees shall be paid when due.

Overdue balances shall incur interest at a rate of per month (or the maximum rate permitted by applicable law, if lower). In addition, Manager may suspend non‑critical services upon sixty (60) days' written notice for continued nonpayment, without waiving any rights to recover fees.

Term and Termination

This Agreement shall commence on Start Date: and shall continue until End Date: unless earlier terminated as provided herein.

Either party may terminate this Agreement without cause upon written notice delivered not less than days prior to the proposed termination date. Either party may terminate for material breach if the breaching party fails to cure such breach within thirty (30) days after receipt of written notice specifying the nature of the breach, unless a longer cure period is required by applicable law or agreed in writing.

Upon termination, Manager shall deliver to Association all records, files, funds and property in Manager’s possession belonging to the Association. Final compensation shall be prorated to the date of termination and any undisputed sums remaining unpaid shall be paid within thirty (30) days of termination.

Confidentiality

Each party shall treat as confidential and shall not disclose to any third party any non‑public information, records or data obtained from the other party in performance of this Agreement, except as required by law or as necessary to perform the services contemplated herein. Manager shall implement customary administrative, physical and technical safeguards to protect personal and financial information of Association and residents.

Insurance and Indemnification

Manager shall maintain, at its expense, general liability and professional liability insurance with limits customary in the community management industry. Manager shall indemnify and hold harmless the Association and its directors, officers and agents from and against any third‑party claims arising out of Manager’s gross negligence or willful misconduct in the performance of its duties. Association shall indemnify Manager for claims arising from Association’s acts or omissions or those of its contractors.

Notices

Notices shall be in writing and shall be delivered by personal delivery, nationally recognized overnight courier, or certified mail, return receipt requested, to the addresses set forth above or to such other address as either party may designate by notice.

Governing Law; Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles. Any dispute arising under this Agreement shall be resolved through good faith negotiation between the parties. If the parties are unable to resolve the dispute by negotiation within sixty (60) days, either party may pursue any available legal or equitable remedies.

Entire Agreement; Amendments

This Agreement, including any attachments or schedules expressly incorporated herein, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether written or oral. No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties.

Additional Provisions

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect. The parties acknowledge that they have had the opportunity to seek independent legal counsel and that this Agreement shall be binding upon and inure to the benefit of their respective successors and permitted assigns. Manager shall not assign this Agreement without prior written consent of Association, which shall not be unreasonably withheld.

Signatures

IN WITNESS WHEREOF, the parties have executed this Agreement through their duly authorized representatives as of the dates set forth below.

Manager:

Print Name:

By:

Date:

Association:

Print Name:

By:

Date:

Enter text✕

What a Community Management Agreement Covers

A Community Management Agreement is a contract between a property owner or homeowners association and a community manager or management firm that defines responsibilities for operating and maintaining a residential or mixed-use community. It typically covers scope of services, fees, term and renewal, insurance and indemnity, budgeting and financial reporting, vendor management, resident communications, maintenance standards, and dispute resolution. The agreement establishes performance expectations, payment schedules, and termination rights so both parties understand operational duties, liability allocation, and administrative procedures during the contract term.

Why a Written Agreement Matters

Use a Community Management Agreement to document roles, fees, and performance standards and reduce disputes. A written contract clarifies expectations, supports enforcement, and provides a record admissible under the ESIGN Act and state UETA frameworks.

Why a Written Agreement Matters

Who Typically Uses This Agreement

Owners, homeowners associations, and property management firms commonly use this agreement to define operational governance and financial responsibilities.

  • HOA boards and committees seeking clear vendor oversight, budgeting, and service-level accountability.
  • Professional management companies requiring defined fee structures, reporting cadence, and indemnity protections.
  • Individual property owners or investors delegating day-to-day operations while retaining reserve and budget approval.

Select contract terms that match property size, local law, and governance model to ensure enforceability and operational fit.

Step-by-Step: Completing the Agreement

This step-by-step checklist helps complete a Community Management Agreement accurately and in proper sequence for execution.

  • 01
    Gather parties: Confirm legal names, addresses, and authorized signers for each party.
  • 02
    Define scope: List services, frequency, and performance metrics the manager must meet.
  • 03
    Set fees: Specify management fee, reimbursement rules, invoicing schedule, and late penalties.
  • 04
    Sign and record: Obtain signatures, date the agreement, retain originals and distributed signed copies.

Configuring an Online Signing Workflow

Configure a digital workflow to streamline signature collection, conditional approvals, and document storage for Community Management Agreement execution.

Field Configuration
Signer identity verification and authentication Email link by default, SMS code or KBA optional
Automatic routing and signing order rules Sequential or parallel routing; set approvers and conditional steps
Conditional field logic and visibility settings Show fields based on role, dates, or checkbox choices to reduce errors
Document storage, retention, and export settings Save signed PDFs, encrypted at rest, with automatic backups and version history

Delivery Channels, Formats, and Integration Notes

Choose delivery channels and integrations that match your organization's systems and signer access patterns for efficiency.

  • Supported formats: PDF, DOCX, and HTML accepted.
  • Integrations: Connectors for Salesforce, NetSuite, Microsoft 365, Google Workspace.
  • Authentication options: Email link, SMS, SSO, or advanced verification.

How Electronic Signing Typically Works

A typical electronic signing flow for the agreement reduces turnaround and captures an audit trail at each step.

  • Upload document: Start with the final contract document ready for fields.
  • Place fields: Add signature, date, and conditional fields where needed.
  • Add signers: Enter signer emails, roles, and signing order.
  • Send and track: Dispatch via email link; monitor completion and download audit trail.

Core Clauses Every Professional Agreement Should Include

A professional Community Management Agreement should clearly allocate operational tasks, financial controls, reporting, insurance, and dispute resolution mechanisms to reduce ambiguity.

Scope of Services

Detail day-to-day management duties, preventive and corrective maintenance obligations, vendor selection and supervision, resident communication responsibilities, and limits of authority for contract amendments or capital expenditures to avoid scope creep.

Compensation

Specify base management fee, fee adjustments tied to CPI or performance, reimbursable expenses, billing schedule, late payment penalties, and procedures for disputed invoices to maintain transparent financial controls.

Insurance

Identify required liability, property, and professional liability insurance types, minimum limits, endorsements such as additional insured, and certificate delivery procedures to reduce exposure from third-party claims.

Reporting

Define monthly and annual financial reporting templates, reserve fund accounting, access to bank statements, budget approval timelines, and audit rights for transparent fiscal oversight.

Termination

State termination triggers, required notice periods and cure opportunities, post-termination transition obligations, document and asset handover requirements, and final accounting procedures to ensure an orderly contract conclusion.

Dispute Resolution

Include escalation steps, mediation or arbitration clauses, applicable governing law, venue selection, and cost allocation for dispute resolution to minimize litigation risk and resolve issues efficiently.

Required Fields and Key Data Elements

Party Names: Full legal names of all parties.
Addresses: Street address, city, state, ZIP.
Effective Date: Use MM/DD/YYYY format for contract commencement.
Term: Initial length and renewal terms.
Fee Details: Management fee, reimbursements, invoicing schedule.
Signatures: Printed name, title, date, and signature.

Common Risks and Consequences of Errors

Enforceability Risk: Ambiguous terms may void clauses.
Financial Exposure: Uncapped liabilities increase risk.
Wrong Signatory: Invalid signer blocks enforcement.
Missing Insurance: Claims may be uninsured.
Late Payments: Collection difficulty and penalties.
State Noncompliance: Local rules can invalidate terms.

Common Mistakes to Avoid

  • Failing to list specific maintenance responsibilities leads to disputes over who schedules, funds, and approves repairs, delaying work and increasing costs.
  • Using vague fee language such as 'reasonable charges' allows differing interpretations and can complicate budgeting and reserve funding during audits or inspections.
  • Omitting renewal mechanics or notice periods results in unintended automatic renewals or contentious termination disputes requiring legal resolution.
  • Incorrectly formatted dates, missing initials on amendments, or inconsistent party names cause banks, insurers, or courts to question document validity.

Key Deadlines and Notice Periods to Include

Key calendar and notice deadlines within a Community Management Agreement drive billing cycles, renewals, and termination rights for both parties.

Standard billing and invoice due dates:

Monthly or quarterly dates for fee payments; specify late payment grace period.

Renewal notice and opt-out period:

Typical notice 30–90 days before term end; define method of service.

Insurance proof delivery deadlines and renewals:

Require certificates of insurance before start and upon renewal annually.

Annual budget submission and approval timeline:

Provide draft budget sixty to ninety days before fiscal year for board review and approval.

Contract termination, cure, and notice requirements:

Specify cure periods, delivery method, and effective termination date after notices.

eSignature Vendor Pricing and Feature Comparison

Compare core plan features and starting prices from common eSignature vendors to evaluate cost and compliance for signing Community Management Agreements.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial, no credit card Varies by vendor and promotion Varies by vendor and promotion Varies by vendor and promotion Varies by vendor and promotion
Bulk Send Yes, Business Premium includes bulk send Varies by plan Varies by plan Varies by plan Varies by plan
Audit Trail Yes, full audit trail and history Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Frequently Asked Questions

Answers to common questions about completing, signing, and enforcing Community Management Agreements, including digital signing and retention considerations.


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