A property management agreement is a legally binding contract between a property owner and a property manager. This agreement outlines the responsibilities and obligations of both parties for the management and maintenance of the property. It is important to carefully review and understand the clauses included in a property management agreement before signing it.

Here are some of the key clauses commonly found in property management agreements:

1. Property Management Services: This clause defines the specific services that the property manager will provide to the owner, including rent collection, maintenance, tenant screening, and general property management duties.

2. Owner`s Obligations: This clause outlines the responsibilities of the owner, such as maintaining the property in good condition, paying property taxes, and providing necessary information to the property manager.

3. Compensation: This clause specifies the compensation arrangement between the owner and the property manager. This includes details such as the management fee, the payment schedule, and any reimbursement for expenses incurred by the property manager.

4. Term and Termination: This clause defines the length of the property management agreement and the conditions under which either party can terminate the agreement.

5. Maintenance and Repairs: This clause outlines the property manager’s duties with regard to maintenance and repairs. It specifies the types of repairs and maintenance that the property manager can perform without prior approval from the owner and the process for obtaining approval for larger repairs.

6. Tenant Management: This clause specifies the property manager’s responsibilities for tenant management, including lease agreements, rent collection, tenant screening, and evictions.

7. Insurance: This clause outlines the types of insurance required for the property, including liability insurance and property insurance, and the responsibilities of both the owner and the property manager for obtaining and maintaining the necessary insurance coverage.

Overall, a well-written property management agreement is a crucial document for protecting the interests of both the property owner and the property manager. It is essential to carefully review the agreement and negotiate terms that work for both parties before signing on the dotted line. By understanding the clauses included in a property management agreement, property owners can ensure that their properties are managed effectively and efficiently, and property managers can provide quality service while protecting their own interests.