Property Management Agreement

Property Management Agreement Template for Denmark

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Document background

The Property Management Agreement is essential for property owners seeking to delegate the management of their real estate assets to professional property managers in Denmark. This document is typically used when property owners require comprehensive management services, including tenant relations, maintenance coordination, financial management, and regulatory compliance. The agreement must comply with Danish property law, including the Danish Rent Act and Housing Regulation Act, while incorporating specific local market practices and requirements. It establishes clear lines of authority, detailed service specifications, performance standards, and financial arrangements between the parties. The Property Management Agreement is particularly crucial in Denmark's highly regulated property market, where specific requirements exist for property maintenance, tenant rights, and financial reporting.

Suggested Sections

1. Parties: Identification of the property owner and the property management company, including full legal names, registration numbers, and addresses

2. Background: Context of the agreement, including brief description of the property and the owner's desire to engage professional management services

3. Definitions: Key terms used throughout the agreement, including 'Property', 'Services', 'Management Fee', 'Operating Expenses', etc.

4. Appointment and Term: Formal appointment of the property manager, duration of the agreement, and renewal terms

5. Scope of Services: Comprehensive outline of the property management services to be provided

6. Manager's Obligations: Detailed responsibilities and duties of the property manager, including reporting, maintenance, and tenant relations

7. Owner's Obligations: Responsibilities of the property owner, including funding, insurance, and cooperation requirements

8. Financial Management: Handling of rent collection, operating expenses, budgeting, and accounting procedures

9. Fees and Payments: Management fees, payment terms, expense reimbursement, and other financial arrangements

10. Insurance and Liability: Insurance requirements and allocation of liability between parties

11. Termination: Conditions for termination, notice periods, and post-termination obligations

12. Data Protection: GDPR compliance and data handling procedures

13. General Provisions: Standard clauses including governing law, notices, assignment, and entire agreement

Optional Sections

1. Emergency Services: Specific procedures for emergency response and out-of-hours services, recommended for residential properties

2. Sustainability Management: Green building management and environmental compliance, relevant for properties with specific environmental certifications or goals

3. Special Facilities Management: Management of special amenities like parking facilities, gym, or swimming pool, if applicable

4. Commercial Tenant Management: Special provisions for managing commercial tenants, applicable for mixed-use or commercial properties

5. Development and Renovation: Procedures for managing major renovations or development projects, relevant if significant works are planned

6. Marketing Services: Specific provisions for marketing vacant units, recommended for properties with high turnover or new developments

Suggested Schedules

1. Property Details: Detailed description of the property, including address, size, number of units, and specific features

2. Services Schedule: Detailed breakdown of all management services and their frequency

3. Fee Schedule: Detailed breakdown of all fees, charges, and commission structures

4. Key Performance Indicators: Specific performance metrics and reporting requirements

5. Emergency Procedures: Detailed emergency response procedures and contact information

6. Maintenance Schedule: Planned maintenance program and procedures

7. Staff Schedule: Details of on-site staff and their responsibilities, if applicable

8. Reporting Templates: Standard formats for various required reports

9. Insurance Requirements: Detailed insurance specifications and minimum coverage requirements

10. Bank Account Details: Designated bank accounts for rent collection and expense payments

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