Property Management Agreement Template, Free Download 2026

Owner, [____________] ("Owner"), hereby appoints and engages [____________] ("Manager") as the exclusive property manager and agent for the real property located at [____________] (the "Property"), including all buildings, improvements, fixtures, and appurtenances thereto. Manager accepts such appointment and agrees to manage the Property on behalf of Owner in accordance with the terms and conditions set forth in this Property Management Agreement (the "Agreement"). Manager represents that Manager holds all licenses and certifications required by applicable state law to perform property management services.

Manager shall act as Owner's lawful agent for the purposes set forth in this Agreement and shall have such authority as is expressly granted herein and as may be reasonably necessary to carry out Manager's duties. Manager shall act in a fiduciary capacity with respect to Owner and shall exercise the degree of care, skill, and diligence that a reasonably prudent property manager would exercise under similar circumstances. Manager shall not have the authority to encumber the Property, execute mortgages or deeds, or bind Owner to any obligation in excess of [$__________] without Owner's prior written consent.

Owner hereby grants Manager the authority to: (a) advertise the Property for lease and negotiate and execute lease agreements with tenants on terms consistent with Owner's written leasing guidelines attached hereto as Exhibit A; (b) collect rent, security deposits, and all other amounts due from tenants; (c) enforce the terms of tenant leases, including issuing notices and commencing eviction proceedings with Owner's prior approval; (d) contract for and supervise maintenance, repairs, and improvements to the Property, subject to the expenditure limitations set forth in Section 5.1; and (e) hire, supervise, and terminate on-site personnel as reasonably necessary.

Manager shall not, without the prior written consent of Owner: (a) make expenditures for any single item or project exceeding [$__________], except in the case of bona fide emergency requiring immediate action to protect the Property, its occupants, or the public, in which event Manager shall notify Owner as soon as reasonably practicable; (b) modify, amend, or terminate any lease except in accordance with Owner's written instructions or as required by law; (c) institute legal proceedings on behalf of Owner other than routine eviction actions; or (d) enter into contracts with related parties or affiliates of Manager without full disclosure to and written approval by Owner.

Manager shall diligently perform the following duties: (a) market and advertise the Property to maintain optimal occupancy, using commercially reasonable marketing methods; (b) screen prospective tenants using consistent, non-discriminatory criteria in compliance with the Fair Housing Act and applicable state and local fair housing laws; (c) execute and administer tenant leases in accordance with Owner's leasing guidelines; (d) collect and deposit all rents and other income from the Property into the trust account designated in Section 4.1; (e) respond to tenant maintenance requests within the timeframes specified in applicable law and the Lease.

Manager shall further: (a) conduct periodic inspections of the Property at intervals of not less than [____________], and prepare written inspection reports for Owner; (b) coordinate and supervise all necessary repairs, maintenance, and capital improvements; (c) ensure the Property complies with all applicable building codes, health and safety regulations, and landlord-tenant laws; (d) manage tenant move-ins and move-outs, including inspections and security deposit accounting; (e) handle tenant complaints and disputes in a professional manner; and (f) maintain comprehensive records of all transactions, correspondence, and activities related to the management of the Property.

As compensation for the services rendered hereunder, Owner shall pay Manager a management fee equal to [____________] percent ([___]%) of the Gross Monthly Revenue collected from the Property (the "Management Fee"). "Gross Monthly Revenue" shall mean all rent, parking fees, pet fees, late fees, application fees, and other income actually collected from tenants, but shall exclude security deposits, Owner contributions, insurance proceeds, and condemnation awards. The Management Fee shall be deducted by Manager from collected revenue prior to disbursement to Owner.

In addition to the Management Fee, Manager shall be entitled to the following fees: (a) a leasing fee equal to [____________] percent ([___]%) of the first [month's / year's] rent for each new tenant placed by Manager; (b) a lease renewal fee of [$__________] for each lease renewal negotiated by Manager; (c) a construction/renovation management fee of [____________] percent ([___]%) of the total cost of any capital improvement project exceeding [$__________]; and (d) an eviction coordination fee of [$__________] per eviction action. All fees shall be earned when the corresponding service is performed and shall be non-refundable.

Owner shall reimburse Manager for all reasonable and necessary expenses incurred in the management of the Property, including but not limited to maintenance and repair costs, advertising expenses, legal fees (with prior Owner approval for non-routine matters), license and permit fees, and costs of supplies. Manager is authorized to pay such expenses from collected revenue prior to disbursement to Owner. For any single expenditure exceeding [$__________] (excluding recurring expenses such as utilities and insurance premiums), Manager shall obtain Owner's prior written approval, except in bona fide emergencies as described in Section 2.2.

All funds collected by Manager on behalf of Owner shall be deposited in a separate trust account maintained by Manager at [____________] (the "Trust Account") in compliance with applicable state real estate licensing laws. Manager shall not commingle Owner's funds with Manager's own funds or with funds of other property owners, unless permitted by applicable state law through a properly maintained pooled trust account. Owner shall maintain a reserve balance of not less than [$__________] in the Trust Account for operating expenses and emergencies. Manager shall disburse net operating income to Owner on or before the [____________] day of each month.

Owner shall maintain at Owner's expense the following insurance coverages on the Property throughout the term of this Agreement: (a) property insurance covering the full replacement cost of all structures and improvements; (b) general liability insurance with limits of not less than [$__________] per occurrence and [$__________] in the aggregate, naming Manager as an additional insured; (c) loss of rental income insurance; and (d) such other insurance as may be required by applicable law or any mortgage encumbering the Property. Owner shall provide Manager with certificates of insurance and shall notify Manager at least thirty (30) days prior to any cancellation or material modification of coverage.

Manager shall maintain at Manager's expense: (a) professional liability (errors and omissions) insurance with limits of not less than [$__________] per claim and in the aggregate; (b) commercial general liability insurance with limits of not less than [$__________] per occurrence; (c) workers' compensation insurance as required by applicable law; and (d) fidelity bond or crime insurance covering Manager's employees with limits of not less than [$__________]. Manager shall provide Owner with certificates of insurance upon request and shall notify Owner at least thirty (30) days prior to any cancellation or material modification of coverage.

Manager shall provide Owner with the following reports on a monthly basis, delivered no later than the [____________] day of the following month: (a) a detailed income and expense statement for the Property; (b) a rent roll showing the status of all units, including occupancy, rent amounts, lease expiration dates, and delinquencies; (c) a bank statement and reconciliation for the Trust Account; (d) a summary of maintenance and repair work performed; and (e) a list of any outstanding issues, tenant disputes, or legal matters requiring Owner's attention.

Manager shall provide Owner with an annual financial summary and year-end reporting package, including IRS Form 1099 and all information reasonably necessary for Owner to prepare tax returns, no later than January 31 of the following year. Manager shall maintain complete and accurate books and records of all financial transactions related to the Property for a period of not less than [number] years. Owner or Owner's designated representative shall have the right to inspect and audit Manager's books and records relating to the Property upon reasonable notice during normal business hours.

The initial term of this Agreement shall commence on [____________] and shall continue for a period of [____________] (the "Initial Term"), unless sooner terminated as provided herein. Upon expiration of the Initial Term, this Agreement shall automatically renew for successive [____________] periods (each a "Renewal Term") unless either party provides written notice of non-renewal at least [number] days prior to the expiration of the then-current term.

Either party may terminate this Agreement at any time upon [number] days' prior written notice to the other party, with or without cause. In addition, either party may terminate this Agreement immediately upon written notice if the other party: (a) commits a material breach of this Agreement and fails to cure such breach within [number] days after written notice; (b) becomes insolvent, files for bankruptcy, or has a receiver appointed; (c) loses any license or certification required to perform its obligations hereunder; or (d) engages in fraud, gross negligence, or willful misconduct in connection with the Property. Upon termination, Manager shall deliver to Owner all books, records, keys, tenant files, lease agreements, security deposits, and collected funds within [number] days.

Owner shall indemnify, defend, and hold harmless Manager and its officers, directors, employees, and agents from and against any and all claims, demands, liabilities, damages, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to: (a) the ownership, operation, or condition of the Property; (b) any act or omission of Owner; (c) any environmental condition on the Property; or (d) any claim by a tenant or third party arising from the Property, except to the extent caused by the gross negligence, willful misconduct, or breach of this Agreement by Manager.

Manager shall indemnify, defend, and hold harmless Owner from and against any and all claims, demands, liabilities, damages, costs, and expenses (including reasonable attorneys' fees) arising out of or relating to: (a) Manager's gross negligence, willful misconduct, or fraud in the performance of its duties under this Agreement; (b) Manager's violation of applicable law, including fair housing laws and trust account regulations; (c) Manager's breach of any representation, warranty, or obligation under this Agreement; or (d) any claim arising from the acts or omissions of Manager's employees or contractors. The indemnification obligations of this Article shall survive the termination or expiration of this Agreement.

This Agreement shall be governed by and construed in accordance with the laws of the state in which the Property is located, without regard to conflict-of-laws principles. Any dispute arising out of or relating to this Agreement that cannot be resolved through good-faith negotiation shall be submitted to [mediation / binding arbitration / litigation in the state or federal courts located in [____________] County]. The prevailing party in any dispute shall be entitled to recover its reasonable attorneys' fees and costs.

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. No amendment or modification of this Agreement shall be effective unless in writing signed by both parties. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect. This Agreement may be executed in counterparts, each of which shall be deemed an original. All notices shall be given in writing and delivered by personal delivery, overnight courier, or certified mail, return receipt requested.