Property Management Agreement
PROPERTY MANAGEMENT AGREEMENT
This Property Management Agreement (the "Agreement") is entered into as of START DATE by and between OWNER NAME, residing at OWNER ADDRESS (the "Owner"), and MANAGER NAME, with offices at MANAGER ADDRESS (the "Manager"), with respect to the PROPERTY TYPE property located at PROPERTY ADDRESS comprising NUMBER OF UNITS unit(s) (the "Property"). The Owner and the Manager are hereinafter collectively referred to as the "Parties."
1. APPOINTMENT AND AUTHORITY.
The Owner hereby appoints the Manager as the exclusive managing agent for the Property, and the Manager hereby accepts such appointment. The Manager is authorized to act on behalf of the Owner in all matters relating to the day-to-day management, operation, and maintenance of the Property, subject to the terms and limitations set forth in this Agreement. The Manager shall act as an independent contractor and not as an employee or agent of the Owner for any purpose other than the management of the Property.
2. MANAGEMENT FEE AND COMPENSATION.
As compensation for the services rendered under this Agreement, the Owner shall pay the Manager a management fee of MANAGEMENT FEE (FEE TYPE), calculated and payable monthly. The management fee shall be deducted from collected rental income prior to disbursement to the Owner. In the event that rental income is insufficient to cover the management fee, the Owner shall pay the balance directly to the Manager within fifteen (15) days of receiving an invoice. The Manager shall not be entitled to any additional compensation unless expressly agreed to in writing by the Owner.
3. TERM AND TERMINATION.
This Agreement shall commence on START DATE and shall continue for a term of TERM LENGTH, unless earlier terminated as provided herein. Either Party may terminate this Agreement by providing at least TERMINATION NOTICE DAYS days' written notice to the other Party. Upon termination, the Manager shall promptly deliver to the Owner all funds, records, documents, keys, and other property belonging to the Owner or relating to the Property. The Manager shall provide a final accounting of all income and expenses within thirty (30) days of the termination date.
4. MANAGER'S DUTIES AND RESPONSIBILITIES.
The Manager shall perform the following duties in connection with the management of the Property: MANAGER DUTIES. In addition, the Manager shall:
(a) Use commercially reasonable efforts to maintain the Property in good condition and repair, and to keep it in a tenantable state at all times;
(b) Market vacant units, screen prospective tenants, execute lease agreements on behalf of the Owner, and manage tenant relations;
(c) Collect all rents and other charges due from tenants in a timely manner and take appropriate action, including initiating eviction proceedings when necessary, for non-payment or lease violations;
(d) Arrange for and supervise all necessary repairs, maintenance, and improvements to the Property, provided that any single expenditure exceeding $REPAIR THRESHOLD shall require the Owner's prior written approval, except in the case of emergency repairs necessary to protect the Property or the safety of tenants;
(e) Maintain accurate and complete financial records of all income and expenses related to the Property and provide the Owner with monthly financial statements.
5. FINANCIAL REPORTING AND RECORDS.
The Manager shall maintain a separate trust account or operating account for funds collected on behalf of the Owner. The Manager shall provide the Owner with a written monthly report detailing all income received, expenses paid, and the current financial status of the Property. The Owner shall have the right to inspect and audit all records and accounts maintained by the Manager at any reasonable time upon reasonable notice.
6. LIABILITY AND INDEMNIFICATION.
The Manager shall perform all duties under this Agreement with reasonable care, diligence, and in compliance with all applicable federal, state, and local laws. The Owner shall indemnify, defend, and hold harmless the Manager from any claims, damages, or liabilities arising out of the Manager's good-faith management of the Property, except to the extent caused by the Manager's negligence, willful misconduct, or breach of this Agreement.
7. NOTICES.
All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when personally delivered, sent by certified mail (return receipt requested), or sent by email to the following addresses:
Owner: OWNER NAME, Address: OWNER ADDRESS, Email: OWNER EMAIL, Phone: OWNER PHONE
Manager: MANAGER NAME, Address: MANAGER ADDRESS, Email: MANAGER EMAIL, Phone: MANAGER PHONE
8. SEVERABILITY.
If any provision of this Agreement is held to be invalid, illegal, or unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
9. ENTIRE AGREEMENT.
This Agreement constitutes the entire agreement between the Parties with respect to the management of the Property and supersedes all prior negotiations, representations, and agreements, whether oral or written. No modification or amendment to this Agreement shall be effective unless made in writing and signed by both Parties.
10. GOVERNING LAW.
This Agreement shall be governed by and construed in accordance with the laws of the State of GOVERNING STATE, without regard to its conflict of laws principles. Any disputes arising under this Agreement shall be subject to the exclusive jurisdiction of the courts of the State of GOVERNING STATE.
IN WITNESS WHEREOF, the Parties have executed this Property Management Agreement as of the date first written above.
PROPERTY OWNER:
Name: OWNER NAME
Date: OWNER SIGN DATE
PROPERTY MANAGER:
Name: MANAGER NAME
License: MANAGER LICENSE
Date: MANAGER SIGN DATE
Party 1
________________
Signature
Date: ________________
Party 2
________________
Signature
Date: ________________
What Is a Property Management Agreement?
A Property Management Agreement in the United States governs the relationship between the parties by fixing what each must do.
The legal foundation for property management relationships derives from agency law principles codified in each state's statutes. In most states, property managers who perform leasing activities must hold a real estate broker's license under statutes such as California Business and Professions Code Section 10131 or New York Real Property Law Section 440-a. The agreement itself functions as a principal-agent authorization, giving the manager fiduciary duties of loyalty, care, and accounting.
A well-drafted Property Management Agreement protects both parties by clearly delineating the scope of the manager's authority and the owner's financial obligations. It prevents disputes over unauthorized expenditures, mishandled security deposits, and improper tenant screening. For owners with multiple properties or those residing out of state, this document is essential for maintaining legal compliance with local landlord-tenant laws, fair housing regulations under the Federal Fair Housing Act (42 U.S.C. 3601-3619), and state-specific security deposit requirements.
When Do You Need a Property Management Agreement?
When purchasing a rental property and hiring a professional manager rather than self-managing the investment. When an out-of-state owner needs a local representative to handle tenant communications, maintenance emergencies, and legal compliance. When transitioning from self-management to professional management after a portfolio grows beyond a few units.
When inheriting a rental property and lacking experience with landlord-tenant law, fair housing compliance, or local building codes. When a homeowner deploys with the military or takes an extended assignment abroad and needs someone to manage their primary residence as a rental. When an HOA or condominium association hires a management company to oversee common areas, collect assessments, and enforce CC&Rs.
Without a written agreement, disputes over management fees, unauthorized repairs, mishandled tenant security deposits, or failure to comply with local habitability standards can result in costly litigation. Many states require written authorization before a manager can sign leases, disburse funds, or initiate eviction proceedings on an owner's behalf.
What to Include in Your Property Management Agreement
Scope of manager's authority -- specify exactly which actions the manager can take without owner approval (routine repairs under a dollar threshold, lease signing, tenant screening) versus actions requiring prior written consent (capital improvements, lease terminations, legal proceedings). This distinction prevents unauthorized expenditures and protects the owner from liability.
Management fee structure -- detail the percentage of collected rent (typically 8-12%), leasing fees for new tenants (often one month's rent), maintenance markup percentages, and any additional charges for eviction management or court appearances. Ambiguous fee structures are a leading source of disputes.
Term and termination provisions -- state the agreement's duration, renewal conditions, and termination notice requirements (commonly 30-60 days). Include provisions for cause-based termination such as breach, negligence, or loss of real estate license.
Financial reporting and trust account requirements -- most states, including those following the Uniform Residential Landlord and Tenant Act (URLTA), require managers to hold tenant funds in segregated trust accounts. Specify reporting frequency, bank account details, and audit rights.
Insurance requirements -- require the manager to maintain errors and omissions (E&O) insurance and general liability coverage. The owner should be named as an additional insured.
Maintenance and repair authority -- set a dollar limit for repairs the manager can authorize without owner approval, and require competitive bids for larger projects. Include emergency repair exceptions for situations involving health, safety, or property damage.
Compliance obligations -- the manager must comply with federal fair housing laws, state landlord-tenant statutes, local building codes, and lead-based paint disclosure requirements under EPA regulations (42 U.S.C. 4852d) for pre-1978 properties.
Sources & Citations
Statutory citations link to official government sources.
- 42 U.S.C. 3601US – Cornell LII
- 42 U.S.C. 4852dUS – Cornell LII
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Property Management Agreement (United States) [Legal document template]. Forms Legal. https://forms-legal.com/usa/real-estate/leases/property-management-agreement
"Property Management Agreement (United States)." Forms Legal, 2026, https://forms-legal.com/usa/real-estate/leases/property-management-agreement.
@misc{formslegal-property-management-agreement,
author = {{Forms Legal}},
title = {Property Management Agreement (United States)},
year = {2026},
howpublished = {\url{https://forms-legal.com/usa/real-estate/leases/property-management-agreement}},
note = {Free legal document template. Based on Uniform Residential Landlord and Tenant Act}
}
Frequently Asked Questions
In most states, yes. Property managers who collect rent, list properties, or execute leases on behalf of owners must hold a real estate broker's license or work under a licensed broker. Some states have specific property management licenses.
Residential property management fees typically range from 8% to 12% of gross monthly rent collected. Commercial properties may have lower percentage fees. Leasing commissions are usually 50% to 100% of the first month's rent for new tenants.
A trust account is a separate bank account where the manager holds client funds (rent, security deposits) separate from their own business funds. State law typically requires this separation to protect the owner's money.
Most agreements include early termination provisions with a specified notice period (typically 30–90 days). Some agreements may include an early termination fee. The specific terms should be clearly stated in the agreement.
Property managers should carry general liability insurance, errors and omissions (E&O) insurance, and workers' compensation if they have employees. The owner should maintain their own landlord insurance on the property.
While the property manager handles day-to-day compliance (fair housing, habitability, safety codes), the property owner retains ultimate legal responsibility for the property. The agreement should clearly allocate compliance obligations.
Yes, electronic signatures are legally valid under the E-SIGN Act (15 U.S.C. 7001) and the Uniform Electronic Transactions Act (UETA) adopted by most states.
The non-breaching party may seek remedies including compensatory damages, specific performance, injunctive relief, or termination. Remedies vary by state law.
Notarization requirements depend on the document type and state law. While not always required, notarization adds authentication and may be necessary for government filing.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Commercial Lease Agreement
Renting a commercial space is a big commitment — whether you're opening your first storefront, leasing an office, or setting up a warehouse. A Commercial Lease Agreement protects both the landlord and the tenant by putting every important detail in writing: rent amount, lease term, security deposit, permitted uses, maintenance responsibilities, and what happens if someone wants out early. Skip this step, and you're asking for trouble down the road. Our free template covers all the key clauses including rent escalation, common area fees, insurance requirements, and renewal options. Download as PDF or Word.
Eviction Notice
No landlord wants to evict a tenant, but sometimes it’s unavoidable — unpaid rent, lease violations, or the need to reclaim the property. An Eviction Notice is the legally required first step in the process. It formally tells the tenant what the issue is, what they need to do to fix it (if applicable), and how much time they have before further legal action begins. Serving a proper notice is critical; get it wrong, and the court may throw out your case. Our free template covers the tenant details, reason for eviction, cure period, and deadline. Download as PDF or Word.
Lease Amendment
Tenant wants to add a roommate? Need to adjust the rent or change a move-out date? Instead of rewriting the whole lease, a Lease Amendment lets you modify specific terms of an existing agreement — keeping everything else intact. It's faster, cleaner, and both parties sign off on exactly what changed. Our template covers the original lease reference, the specific clauses being amended, and the effective date. Fill it out, preview your amendment, and download as PDF or Word — free, no account needed.
Lease Guarantee
Tenant's credit isn't great, but they've got a parent or friend willing to vouch for them? A Lease Guarantee is a written promise from a third party — the guarantor — to cover rent and damages if the tenant can't pay. It gives landlords peace of mind and helps tenants who might otherwise get turned down. Our template spells out the guarantor's obligations, the lease being guaranteed, liability limits, and notice requirements. Fill in the details, preview the document, and download as PDF or Word — free, no sign-up.