Property Management Agreement

This Property Management Agreement (this "Agreement") is entered into as of effective_date (the "Effective Date") by and between:

owner_name (the "Owner"); and

manager_name (the "Manager").

The Owner and Manager are each referred to herein as a "Party" and collectively as the "Parties."

Recitals

WHEREAS, the Owner is the owner of the real property located at property_address (the "Property");

WHEREAS, the Owner desires to engage the Manager to manage, operate, and maintain the Property on the Owner's behalf; and

WHEREAS, the Manager is a professional property management firm with the experience, qualifications, and resources to provide such services.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. Appointment and Authority

The Owner hereby appoints the Manager as the exclusive agent for the management of the Property during the term of this Agreement. The Manager accepts such appointment and agrees to manage the Property in a professional, diligent, and competent manner in accordance with the terms of this Agreement.

The Manager shall have the authority to act on the Owner's behalf with respect to the day-to-day management, operation, and maintenance of the Property, subject to the limitations set forth in this Agreement.

2. Scope of Services

2.1 Tenant Relations and Leasing

The Manager shall:

(a) Advertise and market vacant units through appropriate channels, including online listings, signage, and broker networks;

(b) Show the Property to prospective tenants and conduct open houses as appropriate;

(c) Screen prospective tenants, including conducting credit checks, background checks, employment verification, rental history verification, and reference checks, in compliance with all applicable fair housing laws;

(d) Prepare and execute lease agreements on behalf of the Owner using forms approved by the Owner;

(e) Collect security deposits, first and last month's rent, and any other move-in charges;

(f) Handle tenant move-in and move-out processes, including conducting inspections and preparing condition reports;

(g) Handle tenant complaints, requests, and communications in a timely and professional manner;

(h) Enforce lease terms and issue notices of default, cure, or termination as necessary; and

(i) Coordinate and oversee eviction proceedings when necessary, in consultation with the Owner and legal counsel.

2.2 Rent Collection

The Manager shall:

(a) Collect all rents and other charges due from tenants in a timely manner;

(b) Issue rent invoices and payment reminders to tenants;

(c) Enforce late fee policies in accordance with the lease agreements;

(d) Pursue collection of delinquent rents, including sending demand letters and coordinating with collection agencies when authorized by the Owner;

(e) Deposit all collected rents into a designated trust or operating account within [three (3)] business days of receipt; and

(f) Disburse net rental income to the Owner on a monthly basis, after deducting the Management Fee and any approved expenses.

2.3 Maintenance and Repairs

The Manager shall:

(a) Respond to tenant maintenance requests in a timely manner;

(b) Coordinate and oversee routine maintenance, including landscaping, cleaning, pest control, and minor repairs;

(c) Engage and supervise qualified contractors, vendors, and service providers for repairs and maintenance;

(d) Conduct regular inspections of the Property (at least quarterly) and provide written reports to the Owner;

(e) Handle emergency repairs as needed to protect the Property and ensure tenant safety;

(f) Obtain competitive bids for major repairs and capital improvements as directed by the Owner; and

(g) Maintain records of all maintenance and repair activities.

2.4 Financial Management and Accounting

The Manager shall:

(a) Maintain accurate and complete financial records for the Property;

(b) Provide the Owner with monthly financial statements, including an income and expense summary, rent roll, accounts receivable aging report, and bank reconciliation;

(c) Provide the Owner with an annual financial summary and all necessary documentation for tax reporting purposes, including a 1099 or equivalent form;

(d) Pay all operating expenses of the Property from collected rents, including property taxes (if authorized), insurance premiums (if authorized), mortgage payments (if authorized), utility bills, vendor invoices, and other approved expenses;

(e) Maintain a separate trust or operating account for the Property's funds; and

(f) Provide the Owner with access to financial records and reports upon reasonable request.

2.5 Legal Compliance

The Manager shall:

(a) Comply with all applicable federal, state, and local laws, regulations, and ordinances, including fair housing laws, landlord-tenant laws, building codes, and health and safety codes;

(b) Ensure that all lease agreements and notices comply with applicable law;

(c) Maintain all required licenses and permits for property management activities;

(d) Handle security deposits in compliance with applicable state law; and

(e) Advise the Owner of any known legal issues or compliance concerns affecting the Property.

3. Management Fees

3.1 Management Fee

The Owner shall pay the Manager a management fee equal to management_fee_percent percent (management_fee_percent%) of the gross monthly collected rents for the Property (the "Management Fee"). The Management Fee shall be calculated on the gross rents actually collected each month, not on scheduled or projected rents.

3.2 Leasing Fee

For each new tenant placed at the Property, the Owner shall pay the Manager a leasing fee equal to one-half (1/2) of the first month's rent. No leasing fee shall be charged for lease renewals.

3.3 Maintenance Coordination Fee

The Manager may charge a coordination fee of up to ten percent (10%) of the cost of any maintenance or repair work coordinated by the Manager, provided that the total cost of such work exceeds $500.00. This fee shall be disclosed to the Owner prior to the commencement of work.

3.4 Deduction of Fees

The Manager may deduct the Management Fee and any other fees owed from collected rents before disbursing the balance to the Owner. The Manager shall provide the Owner with a detailed accounting of all deductions.

4. Expense Authorization

4.1 Pre-Authorized Expenses

The Manager is authorized to make expenditures for the following without prior Owner approval, provided that no single expenditure exceeds $500.00 (or such other amount as the Parties may agree in writing):

(a) Routine maintenance and minor repairs;

(b) Emergency repairs necessary to protect the Property or ensure tenant safety;

(c) Supplies and materials for Property upkeep; and

(d) Advertising and marketing expenses for vacant units.

4.2 Owner Approval Required

The Manager shall obtain the Owner's prior written approval before:

(a) Making any single expenditure exceeding $500.00 (except for bona fide emergencies);

(b) Entering into any contract with a term exceeding one (1) year;

(c) Commencing any capital improvement or renovation project;

(d) Initiating eviction proceedings or legal action on behalf of the Owner; or

(e) Making any expenditure outside the scope of normal property management activities.

4.3 Emergency Expenditures

In the event of an emergency that poses an immediate threat to the safety of tenants, the structural integrity of the Property, or compliance with applicable law, the Manager may incur reasonable expenses without prior Owner approval and shall notify the Owner as soon as practicable.

5. Insurance

5.1 Owner's Insurance

The Owner shall maintain adequate property insurance covering the structure, liability, and any other coverages as may be required by law or the Owner's mortgage lender. The Owner shall name the Manager as an additional insured on the property insurance policy.

5.2 Manager's Insurance

The Manager shall maintain professional liability (errors and omissions) insurance, general liability insurance, and workers' compensation insurance (if required by law) throughout the term of this Agreement. The Manager shall provide the Owner with certificates of insurance upon request.

6. Owner's Responsibilities

The Owner shall:

(a) Ensure that the Property complies with all applicable building codes, health and safety codes, and housing regulations;

(b) Maintain adequate insurance coverage for the Property;

(c) Provide the Manager with funds necessary to pay Property expenses if collected rents are insufficient;

(d) Respond to the Manager's requests for authorization and decisions in a timely manner;

(e) Not interfere with the Manager's performance of its duties under this Agreement; and

(f) Indemnify and hold harmless the Manager from claims arising from the Owner's failure to maintain the Property or comply with applicable law, except to the extent caused by the Manager's negligence or willful misconduct.

7. Reporting

The Manager shall provide the Owner with the following reports:

(a) Monthly: Financial statement, rent roll, accounts receivable report, maintenance activity summary, and bank account statement;

(b) Quarterly: Property inspection report with photographs, vacancy report, and market rent analysis;

(c) Annually: Year-end financial summary, 1099 or equivalent tax documentation, and capital improvement recommendations; and

(d) As requested: Any other information reasonably requested by the Owner relating to the management of the Property.

8. Term and Termination

8.1 Term

This Agreement shall have an initial term of one (1) year from the Effective Date and shall automatically renew for successive one-year periods unless either Party provides written notice of non-renewal at least sixty (60) days prior to the end of the then-current term.

8.2 Termination for Cause

Either Party may terminate this Agreement immediately upon written notice if the other Party materially breaches this Agreement and fails to cure such breach within thirty (30) days of written notice specifying the breach.

8.3 Termination Without Cause

Either Party may terminate this Agreement without cause by providing sixty (60) days written notice to the other Party.

8.4 Effect of Termination

Upon termination, the Manager shall:

(a) Transfer to the Owner or the Owner's designee all Property-related records, documents, keys, access devices, and security deposits;

(b) Provide a final accounting of all funds held on behalf of the Owner;

(c) Transfer the balance of all trust or operating account funds to the Owner; and

(d) Cooperate with the Owner or successor manager to ensure a smooth transition.

The Owner shall pay the Manager all fees and expenses earned or incurred through the termination date.

9. Indemnification

Each Party shall indemnify, defend, and hold harmless the other Party from and against any and all claims, losses, damages, liabilities, costs, and expenses (including reasonable attorneys' fees) arising from or related to the indemnifying Party's negligence, willful misconduct, or breach of this Agreement.

10. Limitation of Liability

The Manager shall not be liable for any loss, damage, or liability arising from the Manager's performance of its duties under this Agreement, except to the extent caused by the Manager's negligence, willful misconduct, or breach of this Agreement. In no event shall the Manager's total liability under this Agreement exceed the total Management Fees paid to the Manager during the twelve (12) months preceding the claim.

11. Governing Law

This Agreement shall be governed by the laws of the state in which the Property is located.

12. General Provisions

12.1 Independent Contractor

The Manager is an independent contractor and is not an employee, agent, or partner of the Owner except to the extent expressly provided in this Agreement.

12.2 Entire Agreement

This Agreement constitutes the entire agreement between the Parties regarding the management of the Property.

12.3 Amendments

This Agreement may only be amended by a written instrument signed by both Parties.

12.4 Severability

If any provision is held invalid, the remaining provisions shall remain in effect.

12.5 Assignment

Neither Party may assign this Agreement without the prior written consent of the other Party.

12.6 Notices

All notices shall be in writing and delivered personally, by certified mail, or by confirmed email.

12.7 Counterparts

This Agreement may be executed in counterparts. Electronic signatures shall be deemed original signatures.

IN WITNESS WHEREOF, the Parties have executed this Property Management Agreement as of the Effective Date.

Owner

owner_name

[Electronic signature will be collected via zsign]

[Date will be recorded automatically]

Manager

manager_name

[Electronic signature will be collected via zsign]

[Date will be recorded automatically]