Full Template Text
Copy the usable agreement below, replace every [BRACKET] placeholder, then customize for your situation.
Property Management Agreement
PROPERTY MANAGEMENT AGREEMENT
This Property Management Agreement (the "Agreement") is entered into as of [Effective Date] (the "Effective Date"),
BETWEEN:
[Property Owner Name], with a principal place of business at [Property Owner Address] (the "Property Owner");
AND
[Property Manager Name], with a principal place of business at [Property Manager Address] (the "Property Manager").
The Property Owner and the Property Manager may be referred to individually as a "Party" and collectively as the "Parties."
1. PROPERTY DESCRIPTION AND OWNER INFORMATION
The Property Manager will manage the property at [Managed Property Address] for the Property Owner. Property type: [Property Type]; units: [Number of Units].
2. MANAGEMENT DUTIES AND AUTHORITY
Duties include: [Management Duties Summary]. The Property Manager acts as agent with authority to perform routine operations; extraordinary actions require Owner approval.
3. TENANT SCREENING AND LEASING
The Property Manager will screen tenants per [Screening Criteria] and execute leases consistent with [Lease Terms Template]. Owner may set approval criteria for applicants above [Rent Threshold].
4. RENT COLLECTION AND DISBURSEMENT
Rent is collected and disbursed to Owner [Disbursement Schedule], minus fees and approved expenses. Late fees follow [Late Fee Policy].
5. MAINTENANCE AND REPAIRS AUTHORITY
The Property Manager may authorize repairs up to [Repair Spending Limit] per incident without prior approval. Emergency repairs may exceed limit with documented necessity.
6. MANAGEMENT FEES AND EXPENSES
Management fee: [Management Fee Percentage] of collected rent, plus [Additional Fee Schedule]. Reimbursable expenses require receipts.
7. INSURANCE REQUIREMENTS
Owner maintains property insurance [Insurance Requirements]. Property Manager maintains errors and omissions and general liability coverage.
8. REPORTING AND ACCOUNTING
Reports provided [Reporting Frequency], including income, expenses, vacancies, and maintenance log. Records retained per [Records Retention Period].
9. TERM AND TERMINATION
Term: [Agreement Term Length], renewing unless terminated with [Termination Notice Period] notice. Either Party may terminate for uncured material breach within [Cure Period] days.
10. GOVERNING LAW
This Agreement is governed by the laws of [Governing Law / Jurisdiction], without regard to conflict-of-law principles. The courts located in [Governing Law / Jurisdiction] will have exclusive jurisdiction over disputes arising out of or relating to this Agreement, unless the Parties agree in writing to mediation before litigation.
11. GENERAL
(a) Entire Agreement. This Agreement constitutes the entire agreement between the Parties concerning its subject matter and supersedes prior or contemporaneous agreements on that subject.
(b) Amendments. Modifications must be in writing and signed by both Parties.
(c) Severability. If any provision is held unenforceable, the remaining provisions remain in effect.
(d) Assignment. Neither Party may assign this Agreement without the other Party's prior written consent, except to a successor in connection with a merger, acquisition, or sale of substantially all assets.
(e) Counterparts and Electronic Signatures. This Agreement may be executed in counterparts, including electronic signatures, each of which will be deemed an original.
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
PROPERTY OWNER
Name: [Property Owner Name]
Signature: _______________________________
Name of Signatory: _______________________
Title: ___________________________________
Date: ____________________________________
PROPERTY MANAGER
Name: [Property Manager Name]
Signature: _______________________________
Name of Signatory: _______________________
Title: ___________________________________
Date: ____________________________________
This is a starting template, not legal advice. Have a qualified attorney review it for your jurisdiction and use case before signing.
A property management agreement establishes the terms under which a property manager handles the day-to-day operations of a rental property on behalf of the owner. It’s essential for defining authority, responsibilities, fees, and expectations.
What Is a Property Management Agreement?
A property management agreement is a contract between a property owner and a property management company or individual that grants the manager authority to operate, maintain, and manage the owner’s rental property. It defines what the manager can and cannot do, how they’re compensated, and how the relationship can be terminated.
Essential Clauses
1. Property & Parties
- Property address and legal description
- Owner’s full legal name and contact information
- Management company name, license number, and contact
- Effective date and initial term
2. Management Duties
Core responsibilities typically include:
- Marketing: Listing vacancies, showing units, advertising
- Tenant screening: Background checks, credit checks, references
- Lease execution: Preparing and signing lease agreements
- Rent collection: Collecting rent, issuing receipts, enforcing late fees
- Maintenance: Coordinating repairs, routine inspections, emergency response
- Financial management: Paying property expenses, maintaining records
- Legal compliance: Ensuring property meets code requirements
- Eviction management: Handling eviction proceedings when necessary
3. Financial Terms
- Management fee percentage (typically 8-12% of collected rent)
- Leasing/placement fee for new tenants
- Lease renewal fees
- Maintenance coordination markup
- Vacancy fee (if applicable)
- Monthly disbursement schedule and method
- Reserve fund requirements
4. Spending Authority
- Threshold for repairs without owner approval (e.g., up to $500)
- Emergency repair authority (no limit for safety/health emergencies)
- Capital improvement approval process
- Vendor selection criteria
- Owner’s right to approve major expenditures
5. Reporting & Accounting
- Monthly financial statements
- Income and expense reports
- Year-end tax documentation (1099s)
- Vacancy and leasing activity reports
- Maintenance and inspection reports
- Access to online owner portal (if available)
6. Insurance & Liability
- Property owner’s insurance requirements
- Manager’s errors and omissions insurance
- General liability coverage
- Worker’s compensation for maintenance staff
- Indemnification provisions
7. Termination
- Initial term and renewal provisions
- Written notice period for termination (typically 30-60 days)
- Transfer of security deposits and prepaid rent
- Return of keys, documents, and property access
- Final accounting and disbursement timeline
- Early termination penalties (if any)
How to Customize This Template
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Define spending limits carefully — Set a clear threshold that allows the manager to handle routine repairs without delay while protecting the owner from unauthorized large expenses.
-
Specify fee structure — Be transparent about all fees including any markups on maintenance costs.
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Include reporting requirements — Define exactly what reports the owner will receive and how often.
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Address vacancy scenarios — Clarify whether the manager earns fees during vacancies and what marketing efforts are included.
-
Review local regulations — Property management licensing requirements and landlord-tenant laws vary by state.
How to Send for E-Signature with WPsigner
- Upload — Drop this agreement into your WPsigner dashboard
- Customize — Add property details, fee percentages, and spending thresholds
- Add fields — Place signature, date, and initial fields for owner and manager
- Send — Both parties receive secure signing links
- Store — Signed agreements are stored with complete audit trails
Property management companies can create a standardized template and customize it for each new property owner.