Property Management Agreement Template

Offering property management services can be an incredibly lucrative and scalable business model. That’s why we’ve developed a simple property management agreement (PDF and Word) for you to use as you grow your rent roll.

Free Property Management Agreement Form and Template

What’s in this template?

Click below to access our property management agreement form

What is a property management contract?

Property management is where registered real estate agents (realtors) manage rental properties on behalf of landlords in exchange for a fee. These services include but are not limited to:

A property management contract is a formal agreement between landlords and agents, which lays out the terms and conditions of how a rental property is to be managed.

DISCLAIMER: We are not lawyers or a law firm and we do not provide legal, business or tax advice. We recommend you consult a lawyer or other appropriate professional before using any templates or agreements from this website.

Download our free Property Management Agreement Sample

Now that you know some of the best practices when it comes to property management agreement let’s take the hard work off your plate with our free intern contract template.

Why is a property agreement important for property managers?

Clients engage with property managers because organizing rentals is what you do day in and day out. They trust your expertise and experience to get them the best results with the least amount of headaches.

However, it’s a significant risk for landlords to handover the keys of their most expensive asset to your agency. That’s why it’s not uncommon for clients to seek multiple proposals from different real estate agencies before choosing the property manager they feel the most comfortable with.

A property management agreement is critical for you to secure business over your competition and get exclusive rights to managing your client’s property. Without a formal contract in place, you’re vulnerable to landlords changing their minds party way through your management.

Furthermore, a contract gives you added protection when it comes to receiving your rental fee on time and in full.

Best practices when using a property management agreement template

Property management contracts act as a pathway between a new lead and a long-term client. Below we’ve identified three best practices to get the most out of your agreement.

1. Nurture leads by educating all of your stakeholders

Generating new appraisals and inquiries is the heartbeat of any property management practice. On your contract agreement template, your principal duties and responsibilities as a property manager are listed for potential clients to review.

The secret here is that this information is not only for landlords. It’s also a powerful tool to educate all of your referral engines, including sales agents, service desk teams, strata management, mortgage brokers, or any other stakeholders that could benefit from knowing how you help landlords.

Use the information in your contract to educate your partners as the more they understand how you help your clients, the easier it will be for them to drop your name in interactions.

If you manage to sign a new client off a referral or interaction, make sure you touch base with the referrer to let them know how it went. This builds more trust and confidence with your network, hopefully leading to more opportunities.

2. Determine your fees

In real estate, it’s common that property managers will charge landlords a fixed percentage of monthly rental income as their fee.

Property managers are also responsible for appraising how much rent they think landlords can get in the current market place.

Before writing down your management fees on your contract, make sure you do your due diligence to thoroughly inspect and research the property so you have an accurate idea of how much you’ll be charging for your services.

While landlords want to get as much rent as they can, deep down, they probably have a realistic idea of what to expect. So be reasonable with your quote. If you go too high, it will look suspect. If you quote too low, landlords may not have confidence in your ability to market the property.

3. Leverage your agreement in listing presentations

Your listing presentation is your moment to impress your clients and ultimately win the business. And to seal the deal, you need to get landlords to sign your property management agreement.

But you need to bring it first! What makes you unique? Is it your excellent negotiation skills? Your savvy internet marketing? Your ability to screen applicants efficiently? Whatever selling points you have, now is the time to showcase what you and your agency offer.

But once the dust settles and landlords are excited about the prospect of working with you, it’s time to discuss the terms and conditions of your property management agreement. At this point, you’ve presented what type of rent you can achieve for the property, and you’ve also highlighted your responsibilities during the management.

Your contract neatly summarises all of the points you’ve already made, and it’s a matter of checking the boxes as you guide clients through each section. If you do your groundwork, you should have no problem going back to the office with another signed property management agreement.

Download our free Property Management Agreement Sample

Now that you know some of the best practices when it comes to property management agreement let’s take the hard work off your plate with our free intern contract template.

Frequently Asked Questions

FAQ about Property Management Agreements

What is the standard term for a property management agreement?

Property management contracts usually last as long as the property is being rented. Standard leases range anywhere between 3-24 months for residential properties. However, after fixed-term tenancies, it’s normal for tenants to go on month-to-month agreements, which can go on for many more months and years.

How does a party terminate a property management contract?

A property management agreement may be terminated when:

The lease’s end has been reached, and the landlord decides not to rent the property anymore.
A party breaches the conditions of the agreement.
When a property is not rented within a defined period from the agreement was signed.

Can I edit your property management agreement template?

We recognize that agreements may need to be modified depending on the needs of your client. That’s why our template is available in a Word file type to make changes as required.
If you do make significant amendments to your contract, it might be worth consulting a lawyer to review it for compliance.

document preview

Property Management Agreement

Parties

– This Property Management Agreement (hereinafter referred to as the “Agreement”) is entered into on ______________ (the “Effective Date”), by and between __________________________, with an address of ______________ (hereinafter referred to as the “Owner”) and ______________ with an address of ______________ (hereinafter referred to as the “Agent”) (collectively referred to as the “Parties”).

General

– Hereby, the Owner exclusively appoints the Agent to manage the property that is located at _________________________________________________________________________________________________________________________________________.

– The Agent hereby accepts such responsibility and agrees to manage the property aforementioned.

– The Owner agrees to pay the fees associated with the services that the Agent will provide when managing the aforementioned property.

Term

– This Agreement shall be effective on the date of signing this Agreement (hereinafter referred to as the “Effective Date”) and will end on ______________________.

The Responsibilities Of The Agent

– To rent and lease as well as operate the property.

– To collect rent and monies applicable from potential tenants in due time. However, the Agent will not bear the responsibilities of the potential tenants in case of refusal of payment or other.

– To provide a monthly accounting of rents received and paid expenses as well as any other applicable incomes, monies or sums to the Owner.

– To decorate, improve, repair and maintain the property when needed.

– To hire as well as supervise employees (if any) when needed.

– To inform the Owner of any improvements and repairs that exceed ______________ and to obtain consent from the Owner prior to paying such fees.

Agent Liability

– Hereby, the Owner agrees to hold the Agent harmless from any debts, charges, demands, claims and/or lawsuits.

Payment And Fees

– The Parties agree that the total cost of the services will be ______________ where ______________ will be paid at the signing of this Agreement and ______________ will be paid at completion.

– The Parties agree that the Agent will provide an invoice to the Owner every ______________ days/months for the Services he/she completes.

– The Parties agree that the means of payment will be via ________________________________________________________________________________________________________________________

Termination

– This Agreement may be terminated in case the following occurs:

Immediately in case one of the Parties breaches this Agreement or one of the conditions set forth in this Agreement and does not amend them within a period of ______________.
This Agreement will automatically be terminated in case the premises is not rented in a period of ______________ from the date of signing this Agreement.

Succession

– This Agreement is binding on the Agent and the Owner as well as their successors.

Governing Law

– This Agreement shall be governed by and construed in accordance with the laws of ________________.

Amendments

– The Parties agree that any amendments made to this Agreement must be in writing and they must be signed by both Parties to this Agreement.

– As such, any amendments made by the Parties will be applied to this Agreement.

Assignment

– The Parties hereby agree not to assign any of the responsibilities in this Agreement to a third party unless consented by both Parties in writing.

Alternative Dispute Resolution

– Any dispute or difference whatsoever arising out of or in connection with this Agreement shall be submitted to ______________ (Arbitration/mediation/negotiation) (Circle one) in accordance with, and subject to the laws of, ______________.

Entire Agreement

– This Agreement contains the entire agreement and understanding among the Parties hereto with respect to the subject matter hereof, and supersedes all prior agreements, understandings, inducements and conditions, express or implied, oral or written, of any nature whatsoever with respect to the subject matter hereof. The express terms hereof control and supersede any course of performance and/or usage of the trade inconsistent with any of the terms hereof.

Severability

– In an event where any provision of this Agreement is found to be void and unenforceable by a court of competent jurisdiction, then the remaining provisions will remain to be enforced in accordance with the Parties’ intention.

Signature And Date

– The Parties hereby agree to the terms and conditions set forth in this Agreement and such is demonstrated throughout by their signatures below:

Owner

Name: ______________________

Signature: ___________________

Date: _______________________

Agent

Name: ______________________

Signature: ___________________

Date: _______________________

Related Proposals and Templates

Download our free Property Management Agreement Sample

Now that you know some of the best practices when it comes to property management agreement let’s take the hard work off your plate with our free intern contract template.