A Property Management Agreement is essential when property owners seek professional assistance in managing their real estate investments in the United States. This document formalizes the delegation of property management responsibilities to a qualified professional or company, covering crucial aspects such as tenant relations, maintenance, financial management, and regulatory compliance. The agreement is particularly important as it defines the scope of authority granted to the manager, establishes clear accountability measures, and ensures compliance with federal laws like the Fair Housing Act, as well as state-specific property management regulations. Property Management Agreements are commonly used for both residential and commercial properties, and can be customized based on the specific needs of the property and the jurisdiction's requirements.
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1. Parties: Identifies the property owner and property management company
2. Background: Explains the 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 the specific responsibilities of the property manager
6. Compensation: Outlines fee structure and payment terms
7. Term and Termination: Specifies agreement duration and termination conditions
8. Insurance and Liability: Details required insurance coverage and liability provisions
1. Emergency Protocols: Procedures for handling emergency situations - recommended for larger properties or those with specific safety concerns
2. Maintenance Reserve: Terms for maintaining an emergency repair fund - recommended for older properties or those requiring frequent maintenance
3. Property Staff: Guidelines for hiring and managing on-site staff - recommended for larger properties requiring dedicated staff
1. Property Schedule: Detailed description of managed property/properties
2. Fee Schedule: Breakdown of all management fees and charges
3. Maintenance Schedule: Regular maintenance tasks and responsibilities
4. Required Insurance Coverage: Specific insurance requirements and minimum coverage amounts
5. Service Provider List: Approved vendors and contractors
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