Free Property Management Agreement Template

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

1. 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.

2. Specify fee structure — Be transparent about all fees including any markups on maintenance costs.

3. Include reporting requirements — Define exactly what reports the owner will receive and how often.

4. Address vacancy scenarios — Clarify whether the manager earns fees during vacancies and what marketing efforts are included.

5. Review local regulations — Property management licensing requirements and landlord-tenant laws vary by state.

How to Send for E-Signature with WPsigner

1. Upload — Drop this agreement into your WPsigner dashboard
2. Customize — Add property details, fee percentages, and spending thresholds
3. Add fields — Place signature, date, and initial fields for owner and manager
4. Send — Both parties receive secure signing links
5. 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.