Property Management Agreement

Property Management Agreement – Apartment Complex

Agreement made on the , between of , referred to herein as Agent, and , a corporation organized and existing under the laws of the state of , with its principal office located at , referred to herein as Owner.

1. Employment of Agent

In consideration of the payments to Agent by Owner, as hereinafter set forth, Agent shall manage and operate, as the exclusive representative of Owner, the Apartment Complex owned by Owner, and located on the real property described as:

2. Duties of Agent

In managing the Apartment Complex, Agent shall:

A. Use due diligence to lease and rent the Apartment Complex units.

B. Take reasonable steps to enforce collection of all rentals, and to do all reasonable acts on behalf and for the protection of Owner in the payment and collection of such rentals.

C. Use reasonable measures for the orderly management of the Apartment Complex.

D. Enforce all warranties given in connection with the construction of the Apartment Complex, and manufactured items included therein.

E. Employ, direct, control and discharge all personnel performing regular services in and on the premises (it being specifically understood and agreed that such personnel are and will continue to be agents or employees of Owner).

F. From the rental proceeds, Agent shall pay for advertising, pay all utility and customary service bills, pay building employees' salaries (including, but not limited to, resident managers and assistants, maintenance and gardening personnel), purchase supplies, and cause to be made and pay for such repairs, decorations and alterations as may be required for the proper operation of the Complex.

G. From and to the extent made possible by Owner, service all loans and mortgages on the property, pay real estate and personal property taxes thereon, licenses, fees and payroll taxes incurred in connection therewith and maintain payroll records and make all necessary returns thereon required by law.

3. Accounting Statements

Agent shall maintain books of account of all receipts and disbursements incurred in the management of the property, which records shall be open to inspection by Owner at all reasonable times. Agent shall render monthly statements to Owner, which need not be audited, showing all receipts and disbursements.

4. Payments to Owner

Agent shall remit to Owner at intervals of not more than months, the check of Agent for the net amount due Owner. A sum to be determined by Agent, with the approval of Owner, shall be retained by Agent for the account of Owner as a reserve for the payment of taxes, licenses, insurance, repairs and other expenses that may be anticipated, but that are not due.

5. Bank Account

Agent shall establish and maintain, in a bank whose deposits are insured by the Federal Deposit Insurance Corporation, a separate trust account for the deposit of moneys collected from the property. Agent shall have the authority to draw on this account for any payments that Agent must make to discharge any liabilities or obligations incurred pursuant to this agreement, and for the payment of the fee of Agent. All such payments shall be subject to the limitations of this Agreement.

6. Compensation to Agent

Owner agrees to pay Agent as compensation for the services of Agent described above % of the gross revenues actually received from the property. The compensation is due and payable monthly on the day of each month, and the compensation shall be calculated on the gross revenues of the previous month that were actually received during such month. The compensation may be deducted by Agent from revenues.

7. Insurance

Owner and Agent shall be responsible for maintaining compensation insurance and fidelity bonds covering their respective personnel who are engaged in the operation of the property. Owner shall also maintain public liability insurance in the amount of Dollars ( ) for any single occurrence of bodily injury or property damage. Owner shall name Agent as co-insured in the public liability insurance policy. Maintenance of other insurance in connection with the property shall be the responsibility of Owner.

8. Duration and Termination

This Agreement shall continue in full force and effect for a period of months from the effective date of the Agreement. Either party may terminate this Agreement at any time by giving to the other party days' written notice of such termination.

9. Other Real Estate Services

Agent shall be separately compensated for special real estate services required by Owner and not included in the agreed management service contract, such as sales, appraisals and financing.

10. Indemnification

A. Owner shall indemnify Agent against any failure to pay any charges required for the proper operation of the Apartment Complex, if necessary funds are not made available to Agent by Owner from revenues received from the Apartment Complex or are not otherwise made available by Owner.

B. Owner shall indemnify Agent against all liabilities of any nature whatsoever in connection with the management and operation of the property, and against all liability for injury or death suffered by employees, or any other person, resulting directly from the management and operation of the property, provided that this Section shall not impose any obligation on Owner to indemnify Agent against the willful misconduct or grossly negligent acts or omissions of Agent or the Agents or employees of Agent.

11. Severability

The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

12. No Waiver

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

13. Governing Law

This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of .

14. Notices

Any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

15. Attorney’s Fees

In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

16. Mandatory Arbitration

Any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

17. Entire Agreement

This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

18. Modification of Agreement

Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

19. Assignment of Rights

The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

20. In this Agreement, any reference to a party includes that party's heirs, executors, administrators, successors and assigns, singular includes plural and masculine includes feminine.

WITNESS our signatures as of the day and date first above stated.