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Property Management Agreement Form PDF Free Download
Property Management Agreement
A property management agreement is between a property owner and a manager that is hired to maintain the property.
It is common for the manager to be paid a percentage (%) of the total revenue generated from the property plus fees for maintenance, leasing, and evicting tenants.
What is a property management agreement?
This document creates a contract between a property owner and a company or a person that has been hired to manage the property in question.
The contract will cover all the responsibilities of a management company that is to be taken on by the property owner.
Management companies do not all provide the same services, which means that this document needs to be correct and custom-made for each kind of agreement that you want to enter into.
Property management contracts offer the following benefits:
Responsibilities of each party included in the agreement
Information about insurance coverage that must be in place for each building
Information about how to break the contract
Information about the property in question
Provides a definitive timeframe for when each party has to give the notice to terminate the contract
Answers liability questions
These details all make the relationship between the two parties clear and easily defined.
You can use this kind of document for both commercial and residential properties as well.
How to Find a Property Manager
1. Contact the Most Active Agents
The best property manager is someone that has the most knowledge of what is going on in the local real estate market.
Therefore, a real estate agent with active listings for similar properties is the best resource to hire to manage real estate.
Find Real Estate Agents Online
Loopnet.com – For retail and industrial space.
CityFeet.com – For office space.
Realtor.com – For residential units.
It’s common for the most active agents to serve their clients with property management.
If the top agents in the area do not offer property management services, it’s best to find a company on websites such as Yelp.com or Expertise.com.
2. Meet with Prospective Managers
After selecting a few managers that would be a good fit for the property it’s best to meet and understand what each offer.
Every manager is different and some will outsource a lot of their help.
Others have their own internal maintenance staff and usually manage many properties.
The owner will be making a decision to work with the manager on a day-to-day basis so it’s best to be sure about which firm is decided.
A property manager is paid as a percentage (%) of the gross revenue of the real estate being managed.
In addition, they will offer additional fees such as lawn care, snow removal, internal accounting, evictions, and any other services.
How to Terminate a Property Manager
Terminating a property management agreement depends on its terms and conditions.
For larger management firms, an agreement may contain penalties or fees for ending the contract earlier than its term.
Step 1 – Review Your Agreement
The owner should read and review their agreement with the property manager in the presence of legal counsel if possible.
In most standard agreements, termination is permitted with sufficient notice of thirty (30) days.
If not, the owner will have to seek other options to void the agreement.
If the agreement calls for any monies owed to the manager based on annual revenues, the owner will be required to make such prorated payment at the time of terminating the agreement.
Step 2 – Notify the Property Manager
It’s recommended to send a termination notice informing the property manager the agreement between the parties will be void on a specific date.
When sending the termination, it’s best to use USPS-certified mail with a return receipt to prove they have received notice.
Step 3 – Inform the Tenant(s)
The tenants, by the owner or property manager, must be made aware of the pending change.
The tenants should be made aware of the owner’s forwarding address for rent payments, requests, keys, or any other notices.
In addition, it’s best to contact the tenant personally, by phone or email, stating the change on the premises.
| Author | – |
| Language | English |
| No. of Pages | 7 |
| PDF Size | 2 MB |
| Category | Form |
| Source/Credits | eforms.com |
Property Management Agreement Form PDF Free Download