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Property Management Agreement

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PROPERTY MANAGEMENT AGREEMENT

THIS AGREEMENT is made by and between (hereinafter "owner) and (hereinafter “Manager”) for the mutual purpose of the management and operation of (hereinafter the “Property”), more fully described as follows:

In furtherance of this Agreement, Owner and Manager hereby agree to the following terms and conditions (hereinafter captioned as “Articles”):

Article 1. Collection of Rents and Payment of Accounts.

Manager shall negotiate and contract for the rental of the Property and shall collect rents due and provide receipts for same to Owner no later than the 15th of the month in which rents are collected. Manager is appointed and shall act as the lawful agent of Owner to do any and all things legally required to collect rents or other monies due and payable to the Owner of the Property. Manager shall make all necessary and proper disbursements regarding the Property including but not limited to, the payment of real estate or other ad valorem taxes, labor and maintenance fees/charges, decorating and repair charges, advertisements.

Article 2. Maintenance of Property.

Manager shall make or cause to be made proper and thorough inspections of the Property at reasonable intervals and shall make or cause to be made such repairs, alterations, painting and maintenance as necessary to preserve the property in good condition. Improvements or additions to the property above the cost of $ shall be made only with the prior written consent of Owner.

Article 3. Compensation of Manager.

Owner shall pay Manager the following agreed compensation for services to be rendered:

Article 4. Term and termination.

The term of this Agreement shall be for one year from the date hereof and shall be automatically renewed and extended for similar periods thereafter unless terminated pursuant to this Article. Either party may terminate this Agreement for any reason by providing written notice sixty 60 days prior to the date of any renewal period. Manager may terminate this Agreement with thirty (30) days notice for failure of the Owner to pay agreed compensation. Owner may terminate this Agreement with thirty (30) days notice for failure of Manager to provide monthly accounts or to maintain Property in a condition adequate and reasonably safe for use by tenants and visitors. No notice shall be required for termination due to fraud or criminal act affecting the purpose of this Agreement by either party.

Article 5. Notice.

All notices required or deemed necessary by the parties shall be written and shall be deemed effective upon personal delivery, mailing by registered or certified mail with return receipt requested or sending by national express delivery service with receipt. The addresses of Owner and Manager for notice purposes are as follows:

Address of Owner:

Address of Manager:

Article 6. Applicable Law and Construction.

This Agreement shall be deemed subject to the laws of the State of and the parties hereto consent to subject matter and personal jurisdiction of the courts of that state. This Agreement shall be construed in accordance with the laws of that state and no rule of strict construction shall be applied against either party to frustrate the intent and purpose expressed by in this Agreement.

Article 7. Severability.

This Agreement sets forth the entire agreement of the parties and supercedes any other prior or contemporaneous discussions of the parties. If any part of this Agreement is set aside by a court of competent jurisdiction, the parties agree that the remainder of the Agreement shall be valid and enforceable to fullest extent possible under the circumstances.

AGREED TO, signed and made effective this the day of

OWNER:

By:

MANAGER:

By:

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What a Property Management Agreement Covers

A Property Management Agreement is a written contract between a property owner (the principal) and a property manager or management company that defines the manager's authority, responsibilities, compensation, and term. Typical provisions address rent collection, tenant screening, leasing authority, maintenance and repairs, financial reporting, insurance obligations, and termination rights. The agreement establishes who may enter into leases, approve expenditures, hire contractors, and represent the owner in tenant matters. Well-drafted agreements reduce ambiguity, allocate risk, and create an operational framework for day-to-day property oversight and regulatory compliance.

Why a Written Agreement Matters for Owners and Managers

A clear Property Management Agreement protects both parties by defining authority, payment terms, performance expectations, and dispute resolution. It helps prevent costly misunderstandings, supports compliance with landlord–tenant law, and documents fiduciary duties and recordkeeping obligations.

Why a Written Agreement Matters for Owners and Managers

Who Typically Executes a Property Management Agreement

Property owners, condominium associations, and professional managers commonly use these agreements to set operational terms and legal responsibilities.

  • Individual owners and investors managing rental portfolios or single properties for passive income or professional oversight.
  • Third‑party property management companies contracted to handle leasing, maintenance, tenant relations, and accounting.
  • HOAs and condominium associations that delegate collection, maintenance, and vendor management to professional managers.

The document formalizes responsibilities and helps ensure consistent enforcement of policies across properties, tenants, and service providers.

Core Sections to Include in a Professional Agreement

A professional Property Management Agreement groups rights and duties into clear sections so parties can find and enforce obligations without ambiguity.

Authority

Specifies manager powers: sign leases, collect rent, hire contractors, approve repairs up to set dollar limits, and commence eviction actions when authorized.

Compensation

Details fee structure: percentage of rent, flat monthly fee, leasing or renewal commissions, reimbursement mechanics, and payment timing.

Term & Termination

Sets initial term, renewal conditions, notice periods for termination, early‑termination penalties, and post‑termination wind‑down responsibilities.

Maintenance & Repairs

Allocates responsibility for routine maintenance, emergency repairs, vendor selection, insurance requirements, and approval thresholds for capital work.

Reporting & Accounting

Requires periodic financial reports, bank account handling, security deposit management, audit rights, and access to supporting receipts.

Legal & Compliance

Includes indemnities, limitation of liability, governing law, dispute resolution, privacy protections, and any industry‑specific addenda.

Essential Information to Collect and Record

Owner Identity: Legal name and tax ID
Property Details: Address and unit identifiers
Manager Contact: Business name and phone
Compensation Terms: Fee rates and payment schedule
Authority Limits: Spending and leasing caps
Effective Dates: Start and end dates

Step-by-Step: Completing and Executing the Agreement

Follow these sequential steps to fill, review, sign, and retain the Property Management Agreement correctly.

  • 01
    Draft the template: Populate property and party details first.
  • 02
    Set financial terms: Enter fees, expense reimbursements, and payment schedule.
  • 03
    Review legal clauses: Confirm indemnity, liability, and governing law.
  • 04
    Execute signatures: Obtain signed dates from all authorized signers.

Configuring an Online Signing Workflow

A consistent digital workflow reduces errors and provides an audit trail; configure authentication, routing, and notifications before sending.

Field Configuration
Signer Order Sequential or parallel routing
Authentication Email link, SMS code, or KBA
Required Fields Make key fields mandatory
Notifications Auto reminders and completion emails

Technical Considerations for eSigning and Delivery

Confirm file format, signer authentication, and retention settings before eSubmission to ensure compliance and usability.

  • File Types: PDF or DOCX preferred
  • Integrations: CRM and storage connections
  • Security: TLS encryption and audit trail

Match platform capabilities to your compliance needs: HIPAA or 21 CFR Part 11 requirements may need additional controls such as BAAs or advanced signer authentication.

Where to Send and File the Completed Agreement

After signing, route executed copies to stakeholders and retain a secure, accessible record for accounting, legal, and tax purposes.

  • Owner Copy: Provide owner with fully executed PDF
  • Manager Records: Store master file in secure system
  • Accounting: Send to bookkeeping and payroll
  • Tenant Files: Attach related lease documents

Common Timing and Notice Deadlines to Include

Specify deadlines for reporting, notice, and routine actions so each party understands timing and avoids inadvertent breaches.

Effective Date:

Date contract obligations begin

Monthly Accounting:

Deliver financials within 30 days

Repair Response:

Address emergencies within 24–72 hours

Termination Notice:

Typically 30 days for month‑to‑month

Security Deposit Return:

Follow state law timing for returns

Frequent Preparation Errors to Avoid

  • Using informal or unclear authority language that leaves repair approvals or leasing rights ambiguous, causing delays and disputes.
  • Failing to specify exact fee calculations and reimbursement mechanics, which leads to accounting disputes and owner dissatisfaction.
  • Omitting notice periods or failing to align termination language with state landlord–tenant statutes, creating exposure to penalty claims.
  • Not documenting signatory authority for entities, resulting in executed agreements that banks or courts may question.

Principal Risks and Potential Consequences

Breach Liability: Damages for contract violations
Fiduciary Claims: Suits over misapplied funds
Regulatory Fines: Violations of landlord statutes
Tax Reporting Errors: Incorrect 1099s or filings
Loss of Insurance: Coverage disputes on claims
Disputed Authority: Invalid leases or vendor contracts

Typical eSignature Vendor Pricing and Feature Snapshot

Compare basic pricing and common feature availability across providers; signNow appears first per the vendor order used here.

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 trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Real-World Examples of Using a Property Management Agreement

Practical examples illustrate how organizations use these agreements to achieve operational clarity and regulatory compliance.

Martin Properties

Tim Martin, Founder at Martin Properties, used an online Property Management Agreement to centralize tenant onboarding and rent collection.

  • Mobile and offline signing simplified execution for remote agents.
  • He reported being able to process documents with consistent compliance and security, reducing the need for in‑person signings while maintaining thorough records for owners and auditors.

Fertility Centers

John Butler, Founder of Fertility Centers of Illinois, implemented a standardized agreement across multiple locations to unify vendor approvals and billing.

  • Centralized reporting reduced reconciliation effort.
  • The firm cited improved internal workflows and reliable audit trails that supported regulatory and billing reviews across clinics.

Frequently Asked Questions About Property Management Agreements

Answers to common questions about execution, enforceability, notarization, and how electronic signatures are treated under U.S. law.


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