Property Management Agreement Generator

You are an experienced real estate attorney and property management consultant who has drafted thousands of property management agreements for residential, commercial, and mixed-use properties across all fifty states. You understand the complex fiduciary relationship between property owners and managers, including the legal requirements for licensing, trust account handling, disclosure obligations, and the scope of authority that must be carefully defined to protect both parties. You know how to create agreements that clearly establish expectations, protect owner assets, ensure manager compensation, and maintain compliance with state-specific property management regulations.

I need you to create a comprehensive property management agreement for the following arrangement.

The property owner information is as follows. The owner's full legal name or entity name is [OWNER_NAME] with a mailing address of [OWNER_ADDRESS], phone number [OWNER_PHONE?], and email address [OWNER_EMAIL]. The owner is [OWNER_TYPE:select:An individual property owner,A married couple owning jointly,A trust with named trustees,A limited liability company,A corporation,A partnership,Multiple owners as tenants in common]. If the owner is an entity, the authorized representative is [AUTHORIZED_REP?].

The property manager information is as follows. The manager's name is [MANAGER_NAME], a [MANAGER_TYPE:select:Licensed property management company,Licensed real estate broker operating as property manager,Individual licensed property manager,Unlicensed individual where permitted by state law for owner-occupied or limited units]. The manager's business address is [MANAGER_ADDRESS] with phone number [MANAGER_PHONE] and email address [MANAGER_EMAIL]. The manager's real estate license number is [LICENSE_NUMBER?] issued by the state of [LICENSE_STATE?].

The property subject to this agreement is located at [PROPERTY_ADDRESS] in [CITY], [STATE] [ZIP_CODE]. The property type is [PROPERTY_TYPE:select:Single-family residential home,Condominium or townhome unit,Duplex or triplex,Small multifamily building with 4 to 10 units,Large multifamily apartment building with more than 10 units,Commercial retail property,Commercial office building,Industrial or warehouse property,Mixed-use residential and commercial,Vacation or short-term rental property]. The number of rentable units or spaces is [UNIT_COUNT:number:1-500]. A brief description of the property including any notable features or conditions is [PROPERTY_DESCRIPTION?].

The agreement term begins on [START_DATE] and continues [TERM_DURATION:select:For an initial period of one year with automatic annual renewal,For an initial period of two years with automatic annual renewal,Month-to-month from the start date,For a fixed term with no automatic renewal,Until terminated by either party with proper notice]. Either party may terminate this agreement by providing [TERMINATION_NOTICE:select:30 days written notice,60 days written notice,90 days written notice,30 days written notice but only at the end of a lease term,Notice period as required by state law] to the other party.

The management services to be provided include the following core services. Tenant procurement and leasing services [LEASING_SERVICES:select:Are included with manager handling all advertising and tenant placement,Are included with owner approval required for final tenant selection,Are excluded and owner handles tenant placement,Are provided for an additional fee as specified below]. Rent collection responsibilities [RENT_COLLECTION:select:Include collection and deposit of all rents into a trust account,Include collection and direct deposit to owner account,Include collection with manager retaining fees before disbursement,Require owner to collect rent directly]. Maintenance and repair coordination [MAINTENANCE:select:Includes manager handling all routine maintenance up to spending limit,Includes manager coordinating all maintenance with owner approval for all expenses,Includes emergency repairs only with owner handling routine maintenance,Requires owner approval for any expense exceeding the threshold]. Financial reporting and accounting [REPORTING:select:Includes monthly statements with income and expense detail,Includes quarterly statements with annual summary,Includes online portal access with real-time reporting,Includes custom reporting frequency as specified below]. Lease enforcement and eviction services [EVICTION:select:Include manager initiating and managing eviction proceedings,Include manager coordinating with owner's attorney for evictions,Require owner to handle all eviction matters,Include eviction filing with legal fees passed through to owner].

Additional services to be provided are [ADDITIONAL_SERVICES?] which may include property inspections, HOA communication, utility management, tax document preparation, insurance claim coordination, capital improvement oversight, or other services.

The fee structure for management services is as follows. The monthly management fee is [FEE_STRUCTURE:select:A percentage of gross rent collected,A flat monthly fee regardless of occupancy,A percentage of gross rent with minimum monthly amount,A tiered percentage based on number of units or revenue]. The management fee percentage or amount is [FEE_AMOUNT] with a minimum monthly fee of [MINIMUM_FEE?] if applicable. The leasing fee for new tenant placement is [LEASING_FEE:select:Equal to one month rent,Equal to one half month rent,A flat fee amount,Included in the monthly management fee,A percentage of annual lease value,Not applicable as owner handles leasing]. The specific leasing fee amount is [LEASING_FEE_AMOUNT?]. Lease renewal fees are [RENEWAL_FEE:select:A flat fee for processing renewals,A reduced percentage of one month rent,Included in monthly management fees,Not charged for renewals,Equal to the new lease placement fee]. Additional fees that may be charged include [ADDITIONAL_FEES?] such as maintenance coordination markup, after-hours emergency fees, court appearance fees, or vendor supervision fees.

The manager is authorized to make expenditures without prior owner approval for amounts up to [SPENDING_LIMIT:number:100-5000] dollars per individual item or occurrence. For expenses exceeding this amount, the manager [APPROVAL_PROCESS:select:Must obtain written owner approval before proceeding,May proceed with verbal approval and follow-up documentation,Must obtain written approval except in genuine emergencies,Must provide three bids and obtain owner selection before proceeding]. Emergency repairs necessary to protect property or tenant safety [EMERGENCY_AUTHORITY:select:May be authorized by manager up to twice the standard spending limit,May be authorized by manager with no spending limit if necessary,Require owner contact within 24 hours even if performed immediately,Follow the same approval process as non-emergency repairs]. The manager is authorized to sign contracts on behalf of owner for [CONTRACT_AUTHORITY:select:Lease agreements and routine service contracts only,Lease agreements and service contracts up to one year duration,Only lease agreements with existing approved vendors for other contracts,All property-related contracts with prior owner approval].

Financial handling requirements are as follows. All rent and other receipts will be deposited into [ACCOUNT_TYPE:select:A manager-maintained trust account compliant with state law,A manager-maintained operating account separate from manager funds,An owner-designated bank account with manager as authorized signer,An owner-controlled account with manager having no access]. The manager will disburse funds to owner [DISBURSEMENT:select:Monthly by the 15th of the following month after deducting fees and expenses,Monthly by the 10th of the following month,Twice monthly on the 1st and 15th,Within 10 days of rent collection,As specified by owner preference]. Owner disbursements will be made via [DISBURSEMENT_METHOD:select:Direct deposit to owner account,Check mailed to owner address,Electronic transfer upon owner request,Wire transfer for amounts exceeding threshold]. The manager will maintain an operating reserve of [RESERVE_AMOUNT:number:0-10000] dollars to cover routine expenses and minor repairs.

Insurance and liability provisions require the following. The owner agrees to maintain [OWNER_INSURANCE:select:Property insurance and landlord liability coverage naming manager as additional insured,Property insurance with manager named as additional insured,Comprehensive landlord insurance package,Insurance as required by lender with copies provided to manager]. Minimum liability coverage required is [LIABILITY_MINIMUM?] dollars. The manager maintains [MANAGER_INSURANCE:select:Errors and omissions insurance and general liability coverage,A fidelity bond covering employee theft,Comprehensive property management insurance package,Insurance as required by state licensing laws] with policy information provided upon request. The owner agrees to indemnify and hold harmless the manager from claims arising from [INDEMNIFICATION:select:Owner's negligence or failure to maintain property,Conditions existing prior to management agreement,Owner's failure to follow manager recommendations,Any matter not caused by manager's gross negligence or willful misconduct].

Owner responsibilities and representations include the following. The owner [OWNERSHIP_STATUS:select:Is the sole legal owner of the property with full authority to enter this agreement,Owns the property jointly with co-owners who have authorized this agreement,Represents a trust or entity authorized to manage property affairs,Has received lender approval if required for third-party management]. The owner will provide the manager with [OWNER_DOCUMENTS:select:Copies of existing leases and tenant information and property documents,All keys and access codes and vendor contacts,Financial records and prior year operating statements,All documentation reasonably requested by manager]. The owner will maintain the property in compliance with [COMPLIANCE:select:All applicable housing codes and habitability requirements,Fair housing laws and local landlord-tenant regulations,HOA rules and restrictions if applicable,Environmental and safety standards].

The tenant screening criteria authorized by owner include [SCREENING_CRITERIA:select:Manager's standard screening criteria including credit and background and income verification,Owner-specified criteria meeting fair housing requirements,Minimum credit score and income requirements as specified,Flexible criteria at manager's professional discretion]. The minimum acceptable credit score is [CREDIT_MINIMUM?] and minimum income requirement is [INCOME_REQUIREMENT?] times the monthly rent.

Upon termination of this agreement, the transition process will include [TRANSITION:select:30-day transition period with manager cooperating in orderly handoff,Immediate transfer of all documents and funds within 10 business days,Manager continuing to collect rent through current lease terms,Prorated final accounting with funds transferred within 30 days]. The manager will provide owner with [TRANSITION_ITEMS:select:All original documents and keys and tenant contact information and financial records,Digital copies of all records with originals retained per state requirements,All materials specified in a termination checklist attached hereto,Complete transition package per industry standards].

Additional terms, conditions, or special arrangements for this management relationship include [ADDITIONAL_TERMS?].

Create a professional property management agreement document that opens with a clear title identifying it as a Property Management Agreement along with the effective date and the state whose laws govern the agreement. Begin with recitals establishing that the owner is the legal owner of the property, that the owner wishes to engage the manager to manage the property on owner's behalf, that the manager is qualified and where required properly licensed to perform property management services, and that the parties wish to set forth their agreement regarding the management of the property.

Present the parties section with complete identification of both the property owner and the property manager, including legal names or entity names, addresses, contact information, and licensing credentials for the manager where applicable.

Include a comprehensive property description section with the complete address, property type, number of units, and any specific characteristics relevant to management of the property.

Detail the term and termination provisions including the effective date, initial term, renewal provisions, notice requirements for termination by either party, and any conditions that permit immediate termination such as breach of agreement or loss of license.

Create an extensive scope of services section organized by category including leasing and tenant placement services, rent collection and accounting, maintenance and repair coordination, tenant relations and lease enforcement, financial reporting and record keeping, and any additional services. Be specific about what is included and what requires additional compensation.

Present the compensation section with all fees clearly stated, including the monthly management fee calculation method, leasing and renewal fees, any additional service charges, when fees are earned, how fees are calculated during partial months, and fee adjustments if any.

Include a detailed authority and spending limits section establishing the manager's authority to act on behalf of owner, spending thresholds requiring approval, emergency authorization, and the manager's authority to execute contracts, hire vendors, and make decisions within defined parameters.

Address financial handling thoroughly including the trust account or operating account arrangement, rent collection and deposit procedures, owner disbursement schedule and method, maintenance of reserves, prohibition on commingling funds, and the accounting and reporting obligations.

Create comprehensive insurance and liability provisions addressing required coverage for both parties, additional insured status, indemnification obligations, and limitations on manager liability for matters beyond manager's control.

Detail owner responsibilities including maintenance of proper insurance, compliance with laws and regulations, providing necessary documents and information, funding reserves and major expenses, and representations regarding ownership and authority.

Include provisions for tenant screening, fair housing compliance, and the authorized criteria for tenant selection that comply with all applicable laws.

Add a termination and transition section explaining the procedures upon termination including the timeline for document and fund transfer, cooperation during transition, accounting for final fees, and handling of ongoing matters such as pending evictions or incomplete repairs.

Include standard legal provisions addressing governing law for the specified state, severability, amendment requirements, notice procedures, entire agreement, and provisions confirming the manager acts as an independent contractor and not as an employee of owner.

Create signature blocks for both the property owner and the property management company or individual manager, with spaces for printed names, authorized signatory titles if applicable, signatures, and dates.

Conclude with an important legal disclaimer in a clearly visible notice stating that this property management agreement template is provided for informational and educational purposes only and does not constitute legal advice. Property management regulations including licensing requirements, trust account rules, fee disclosures, and contract terms vary significantly by state and locality. Many states require property managers to hold real estate broker licenses and comply with specific statutory requirements. Both parties are strongly advised to consult with a licensed attorney in their state before signing this agreement to ensure it complies with all applicable laws and adequately protects their respective interests. Property owners should verify that any property manager is properly licensed where required and maintains appropriate insurance coverage. This template should be reviewed and customized by qualified legal counsel to address specific circumstances and local legal requirements.

Format the document professionally with clear section headings, consistent numbering, and adequate signature spaces. The agreement should be comprehensive enough to address the fiduciary responsibilities inherent in property management relationships while remaining accessible to property owners who may not have extensive legal backgrounds.