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Property Management Agreement for Philippines

Property Management Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions under which a professional property management company will manage and operate real estate on behalf of the property owner. The document outlines the scope of management services, financial arrangements, responsibilities of both parties, reporting requirements, and operational procedures, while ensuring compliance with Philippine real estate laws, including the Real Estate Service Act (RESA) and relevant provisions of the Civil Code of the Philippines. It serves as the primary framework for the professional relationship between property owners and management companies, detailing everything from day-to-day operations to strategic property management decisions.

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What is a Property Management Agreement?

The Property Management Agreement is essential for property owners in the Philippines who wish to delegate the management and operation of their real estate assets to professional property management companies. This document is commonly used for both residential and commercial properties, including condominiums, office buildings, retail spaces, and mixed-use developments. The agreement must comply with Philippine legislation, particularly the Real Estate Service Act (RESA) and the Civil Code of the Philippines, while addressing specific local market requirements and practices. It typically includes detailed provisions for property maintenance, tenant relations, financial management, reporting obligations, and emergency procedures. The document serves as a crucial tool for establishing clear lines of authority, responsibilities, and performance expectations in the property management relationship, while protecting the interests of both the property owner and the management company.

What sections should be included in a Property Management Agreement?

1. Parties: Identification of the Property Owner and the Property Management Company, including complete legal names and addresses

2. Background: Context of the agreement, brief description of the property, and purpose of engaging property management services

3. Definitions: Definitions of key terms used throughout the agreement, including 'Property', 'Services', 'Management Fee', etc.

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

5. Scope of Services: Detailed description of property management services to be provided, including maintenance, tenant management, financial management, etc.

6. Manager's Duties and Responsibilities: Specific obligations of the property manager, including reporting, maintenance standards, and operational procedures

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

8. Financial Management: Handling of rental income, operating expenses, bank accounts, and financial reporting requirements

9. Fees and Compensation: Management fees, additional service fees, payment terms, and reimbursement provisions

10. Insurance and Liability: Insurance requirements, liability limitations, and indemnification provisions

11. Termination: Grounds for termination, notice requirements, and post-termination obligations

12. General Provisions: Standard clauses including governing law, dispute resolution, notices, and assignment restrictions

What sections are optional to include in a Property Management Agreement?

1. Emergency Procedures: Specific procedures for handling emergency situations, recommended for larger properties or those with special safety requirements

2. Environmental Compliance: Environmental management obligations, recommended for properties with specific environmental concerns or requirements

3. Marketing and Leasing Services: Detailed provisions for marketing and leasing services if the property manager is responsible for tenant acquisition

4. Construction Management: Provisions for managing renovation or construction projects, relevant for properties planning major improvements

5. Security Services: Specific security management requirements, important for commercial properties or high-security residential complexes

6. Staff Management: Provisions regarding on-site staff employment and management, relevant for larger properties requiring dedicated staff

7. Green Building Management: Specific provisions for managing environmentally certified buildings or implementing sustainability practices

8. Pest Control Management: Detailed pest control obligations and procedures, important for properties with specific pest control needs

What schedules should be included in a Property Management Agreement?

1. Schedule A - Property Details: Detailed description of the property, including address, boundaries, facilities, and included equipment

2. Schedule B - Services Specification: Detailed breakdown of all services to be provided, including frequency and quality standards

3. Schedule C - Fee Schedule: Detailed breakdown of all fees, including base management fee, additional service fees, and payment terms

4. Schedule D - Maintenance Schedule: Planned maintenance schedule and procedures for different property components

5. Schedule E - Reporting Templates: Templates for required regular reports and financial statements

6. Schedule F - Emergency Contact List: List of emergency contacts, including property manager, owner representatives, and essential service providers

7. Schedule G - Operating Budget: Initial operating budget and guidelines for budget management

8. Appendix 1 - Required Insurance: Detailed insurance requirements for both property manager and owner

9. Appendix 2 - Key Performance Indicators: Specific performance metrics and standards for evaluating property management services

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions








































Clauses









































Relevant Industries

Real Estate

Property Management

Residential Housing

Commercial Real Estate

Retail Property

Industrial Property

Hospitality

Mixed-Use Development

Condominium Management

Office Space Management

Relevant Teams

Legal

Real Estate

Property Management

Operations

Facilities Management

Finance

Compliance

Risk Management

Asset Management

Maintenance

Administrative Services

Relevant Roles

Property Manager

Real Estate Manager

Facility Manager

Asset Manager

Building Operations Manager

Property Management Director

Real Estate Services Director

Legal Counsel

Compliance Officer

Operations Manager

Maintenance Manager

Leasing Manager

Financial Controller

Property Administrator

Real Estate Portfolio Manager

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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