The Property Management Agency Agreement is essential when property owners seek professional management services for their real estate assets. This document, governed by U.S. federal and state laws, establishes the framework for the ongoing relationship between the owner and management company. It typically includes detailed provisions for property maintenance, tenant relations, financial management, reporting requirements, and legal compliance. The agreement is particularly important for ensuring clear understanding of responsibilities, authority levels, and performance expectations in property management relationships.
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1. Parties: Identifies and defines the property owner and property management company
2. Background: Establishes context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Appointment and Authority: Establishes the manager's appointment and scope of authority
5. Manager's Duties: Details core responsibilities of the property manager including rent collection, maintenance, tenant relations, and compliance with laws
6. Owner's Obligations: Specifies owner's responsibilities including funding, insurance, and cooperation requirements
7. Compensation: Details management fees, payment structure, and reimbursable expenses
8. Term and Termination: Specifies agreement duration, renewal terms, and termination conditions
9. Liability and Indemnification: Outlines liability limitations and mutual indemnification provisions
10. Insurance Requirements: Specifies required insurance coverage for both parties
11. Notices: Details how formal communications between parties should be made
12. Governing Law: Specifies applicable law and jurisdiction
1. Performance Metrics: Defines specific KPIs and performance standards for property management services
2. Special Authorizations: Additional authority granted to manager for specific situations or decisions
3. Environmental Provisions: Special environmental responsibilities and compliance requirements
4. Emergency Procedures: Specific procedures for handling emergency situations
5. Digital Services: Provisions for online rent collection, digital communications, and property management software
1. Property Schedule: Detailed description and inventory of managed property including address, units, and amenities
2. Fee Schedule: Detailed breakdown of all management fees, charges, and commission structures
3. Service Level Agreement: Specific performance standards, response times, and service metrics
4. Insurance Requirements Schedule: Detailed specification of required insurance coverage types and limits
5. Maintenance Schedule: Regular maintenance requirements, schedules, and procedures
6. Property Manager's Authority Limits: Specific monetary and decision-making authority limits for the property manager
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