When do you need a property management agreement?

There is a need for a property management agreement if, for instance, you have a property and you want somebody to manage it for you. This can either be a single individual or a company. If you work for a management company, you can use the property management contract to keep your company protected.

Having a property management agreement template makes the responsibilities of both parties very clear. Remember that not all management companies offer the same services. For example, some of these companies assume the responsibilities of marketing rental properties whereas others leave the responsibilities to the property owners.

The contract specifies the duties that the management company provides throughout the length of the contract. If you’re the owner of the property, the agreement protects your interests. But if you’re the owner of a property management company, the property management agreement form protects your interests while providing written documentation of the terms you have negotiated with the owner.

Downloadable Templates:

property management agreement 05

property management agreement 06

property management agreement 07

property management agreement 08

property management agreement 09

property management agreement 10

property management agreement 11

property management agreement 12

property management agreement 13

property management agreement 14

property management agreement 15

property management agreement 16

property management agreement 17

property management agreement 18

property management agreement 19

property management agreement 20

property management agreement 21

property management agreement 22

property management agreement 23

property management agreement 24

property management agreement 25

property management agreement 26

property management agreement 27

property management agreement 28

property management agreement 29

property management agreement 30

property management agreement 31

property management agreement 32

property management agreement 33

property management agreement 34

property management agreement 35

property management agreement 36

property management agreement 37

property management agreement 38

property management agreement 39

property management agreement 40

property management agreement 41

property management agreement 42

property management agreement 02

property management agreement 03

property management agreement 04

***

Responsibilities in a property management agreement

As a property owner, you can delegate the responsibilities of managing the property to either a property manager or company. Make sure you read the property management contract thoroughly and renegotiate any items in the contract you’re not comfortable with. If you have reached an agreement, then you can sign the contract.

The property management agreement template should indicate in a detailed manner, the responsibilities of the property manager. Whether the property is for residential or commercial use, it should incorporate the following points:

• The responsibilities of the property manager
  This includes finding tenants, collecting rents, maintaining the property, and more depending on your needs.
• The fees of the property manager
  This includes how you calculate such fees if it isn’t a fixed amount. This also includes how and when you will pay the fees.
• Other services provided by the property manager
  There are services that the property manager can agree to provide as needed that aren’t covered by the standard management fee. The agreement must specify the details of these additional services and their related fees.
• Limitations of the contract
  There are things that the property management company won’t do. Include all of these as your responsibilities as the owner.
• Other pertinent details
  In the property management agreement form, specify that there should be no contracting with other property managers or property management companies for the contract’s duration.
  Also, the property manager cannot enter the premises without giving you appropriate notice first.
  As the owner, you cannot sign in a tenant without the approval or involvement of the property manager.
  Include a provision of providing a reserve fund that the property manager can use for daily management expenses. As the owner, you should top-up the fund whenever it’s needed.
  If you plan to obtain Liability Insurance, the contract should include the coverage amount. In most agreement cases, you should include the property management company in the coverage of the insurance terms.

What to include in your property management agreement?

Every property management agreement should suit the two entities involved along with the property too. For example, a property management contract for a commercial property that houses multiple businesses needs specific considerations for the businesses that operate in the building.

Property management companies usually have a standard property management agreement template for their business dealings. You can then customize this standard contract for each specific property. Following are the basic aspects you should include:

• Services
  This section includes all of the services of the agreement. It should enumerate the responsibilities of the management company. All such duties are part of the fees agreed upon within the agreement.
• Services that aren’t covered
  Any services that aren’t covered by the property management company should also be clearly stipulated in the agreement. This means that the company takes no responsibility for services not covered with regard to the property.
• Fees
  This section covers the costs of the services covered under the agreement. These may vary depending on area or state. Some may have flat rate fees per month. When you do research on fees against the current market, take into consideration the services covered by the property management company – higher fees can sometimes be an indication of more comprehensive services. The same section also lays out the costs for additional services that you might add.
• Extra fees
  There may (or may not) be a section for extra costs. You may add these if you want to engage the property management company for extra responsibilities that are not in the standard contract. Make sure to stipulate these extra duties within this section.
• The responsibilities of the property owner
  This section enumerates what your responsibilities are as the property owner. Included in this same section is a clause that discusses the exact kind of insurance that you need to carry out at all times.
• The limitations of the property owner
  Most property management agreement forms contain a section that governs what you cannot do as a property owner. These limitations are necessary so that the property management company can deal with all of the aspects of the daily management of the property.
• Length of the agreement
  Generally, the standard length of a property management agreement is one year, even for those cases where the partnership has lasted for many years. A yearly review of the contract is important to make sure that all of the relevant issues are adequately covered. Moreover, fees may increase and you may want to add new services.
• Liabilities
  This section covers the legal liabilities and indemnifications with regards to the property. Such liabilities may include:
  A clause that specifies the management company’s liability in cases where there are any personal claims or injuries against the property.
  There can be cases where the management company knew about a risk and didn’t do anything to deal with it. In such a case they might have liability for it.
  Also, specify in this section who gets the liability for the different situations that may arise when dealing with the property.
  There should be clauses about liability when tenants break their leases which might lead to your financial distress.
• Compliance issues
  When renting properties to residents or commercial enterprises, there are some legal compliance issues involved. This section determines the responsibilities of the property management company for such issues. Include in this section the details about equal opportunity housing and discussions about local laws and codes.
• Funding or advances
  Discussed here are your responsibilities as the property owner which includes funding for the day-to-day management of the property or any possible emergencies, and a section on advances.
  Property management companies sometimes advance money for any costs needed for the property. For this, there may be fees associated with fund repayment as well as a set of timelines as to when you must return the entire payment to the management company.

***

It’s time to bring your property management to another level. Get all the professional-grade property templates you need to plan, start, organize, manage, and grow your business; one click away in the links below!

For our ONLINE legal and business services, please follow this instruction:

1. 1. click the following website link, www.raynessanalytica.com.
   2. once on the website’s homepage, an ONLINE brown chat box will appear at the right bottom end of screen;
   3. click on the chat tab, insert NAME, EMAIL and PHONE NUMBER; and
   4. proceed when ready, letting us know the issue(s) and eliciting HELP from our lawyers and business specialists.

P.S. Sometimes all that’s needed is a form, document or tip that can solve problems or issues that repeat in your life or business. To save you from unnecessary legal costs by hiring lawyer(s), here are customizable smart templates/forms that you can use as often as you need; flexible enough to allow for changes without leaving you exposed. Click the following link, FREE CUSTOMISABLE LEGAL TEMPLATES to search for the desired template, download it and embark on your great legal adventure – and don’t forget to bring the bug spray. For each template, we have numerous different customizable documents.

Go to the “Order Now” page and make a request.

We look forward to addressing your concerns and earning your trust and confidence in us!

🦁 RNA (Legal and Business Consultants) | KUBWA & CO. ADVOCATES ⚖️

Someday everyone will be doing it Our Way. We’re doing it Now!

The Centre in [East] Africa for Legal and Business Élites

🇰🇪 Kenya’s E-Lawyers and Business Specialists 🇰🇪