Ready-to-Use Property Management Agreement Template
This ready-to-use property management agreement template helps a property owner appoint a manager to oversee rental operations, collect income, coordinate maintenance, provide reports, and define fees, authority, responsibilities, and termination conditions in writing.
A property management agreement sets out the terms under which an owner appoints a manager to administer a rental property. It identifies the property, defines the manager’s authority, and records the services to be provided. A clear written agreement can reduce disputes about fees, maintenance decisions, tenant communications, and accounting. This template is designed as a practical starting point that parties can adapt to their circumstances and applicable law.
Purpose of a Property Management Agreement
The agreement establishes a professional relationship between the property owner and the property manager. Its central purpose is to state which activities the manager may perform on the owner’s behalf, such as advertising the property, dealing with tenants, collecting rent, arranging repairs, and preparing financial statements.
It should also preserve the owner’s control over important decisions. For example, the parties can set approval limits for repair costs, identify restricted actions, and specify how money received for the property must be held and transferred.
Essential Information to Include
The document should identify each party accurately, including legal names, addresses, and contact details. It should describe the managed premises precisely, preferably using the full property address and any unit, parking, storage, or common-area details relevant to the arrangement.
Scope of Authority
Authority should be stated in practical terms. The manager may be authorised to communicate with tenants and suppliers, but the owner may wish to retain approval rights for leases, legal action, major repairs, or expenditure above an agreed amount.
| Document field | Purpose | Frequent mistake |
|---|---|---|
| Property description | Identifies the premises being managed | Leaving out the unit number or ancillary spaces |
| Management services | Defines the manager’s duties | Using vague wording such as “manage everything” |
| Management fee | States the payment method and amount | Not clarifying whether fees are calculated before or after expenses |
| Repair approval limit | Sets the spending amount requiring owner consent | Failing to provide an emergency exception |
| Reporting schedule | States when accounts and reports are delivered | Not identifying the reports or supporting records required |
Services, Fees, and Financial Records
The services section should list routine tasks and separately identify optional or additional services. Common duties include marketing vacant premises, screening applicants where lawful, preparing lease documentation, collecting rent, supervising repairs, handling tenant requests, and reporting to the owner.
Fees and Expenses
The agreement should explain whether the manager receives a percentage of collected rent, a fixed monthly fee, leasing fees, renewal fees, maintenance coordination charges, or other compensation. It should also state which property expenses may be paid from funds held for the owner and whether the manager can retain reimbursements.
- Specify the management fee and how it is calculated.
- State when fees are deducted or paid.
- Set a repair expenditure limit requiring prior approval.
- Describe how rental income and deposits will be handled.
- Require periodic statements supported by relevant records.
Editable template
Document template
PROPERTY MANAGEMENT AGREEMENT
Place: ____________________
Date: ____________________
This Property Management Agreement (the “Agreement”) is entered into by and between:
Owner: ____________________, of ____________________, identification/registration number ____________________, email ____________________, telephone ____________________.
Manager: ____________________, of ____________________, identification/registration number ____________________, email ____________________, telephone ____________________.
The Owner appoints the Manager to manage the property described below, subject to the terms of this Agreement.
| Variable | Details |
|---|---|
| Managed property address | ____________________ |
| Property type and unit details | ____________________ |
| Agreement start date | ____________________ |
| Agreement term | ____________________ |
| Management fee | ____________________ |
| Fee payment method and due date | ____________________ |
| Repair approval limit | ____________________ |
| Reporting frequency | ____________________ |
| Termination notice period | ____________________ |
- Appointment and scope. The Owner appoints the Manager to administer the managed property and to perform the following services: ____________________. The Manager may act only within the authority granted by this Agreement and applicable law.
- Rental operations. The Manager is authorised to market the property, communicate with prospective and current tenants, collect rent and other sums, coordinate tenancy documentation, and perform the following additional tasks: ____________________.
- Funds and reporting. The Manager shall maintain accurate records of income, expenses, fees, and payments relating to the property. The Manager shall provide the Owner with statements and supporting information every ____________________.
- Fees and expenses. The Owner shall pay the Manager the management fee stated above. Property-related expenses may be paid from funds held for the Owner, subject to the approval limit and any emergency authority set out in this Agreement.
- Repairs and emergencies. The Manager may arrange routine repairs up to the stated approval limit. In an emergency requiring immediate action to protect persons, prevent substantial damage, or comply with legal requirements, the Manager may authorise necessary work and shall notify the Owner as soon as reasonably practicable.
- Owner responsibilities. The Owner shall provide accurate property information, maintain required insurance, make funds available for authorised expenses, and comply with all legal obligations applicable to the property.
- Term and termination. This Agreement begins on the stated start date and continues for the agreed term unless ended earlier in accordance with this clause. Either party may terminate by giving the stated written notice. Upon termination, the Manager shall promptly transfer property records, keys, funds, and relevant documents to the Owner or the Owner’s authorised representative.
- Governing law. This Agreement shall be governed by the laws of ____________________. Any dispute shall be addressed in the courts or forum having jurisdiction in ____________________.
Additional terms: ________________________________________________________________________________
________________________________________________________________________________
Signed by the parties on the date stated above.
________________________________
Owner signature
Name: ____________________
Date: ____________________
________________________________
Manager signature
Name: ____________________
Date: ____________________
________________________________
Witness, if required
Name: ____________________
Date: ____________________
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Maintenance, Emergencies, and Compliance
Maintenance provisions should distinguish routine work from urgent work. The owner may authorise the manager to arrange emergency repairs immediately when necessary to protect people, prevent material damage, or comply with legal obligations.
The parties should also allocate responsibilities for licences, safety requirements, insurance, inspections, and notices. A manager’s appointment does not automatically remove the owner’s legal duties, so the terms should be aligned with local landlord and property law.
Set a realistic emergency spending limit and require the manager to notify the owner promptly after urgent work is authorised.
Term, Termination, and Handover
The agreement should state its start date, whether it continues for a fixed term or until terminated, and the notice required for either party to end it. It is useful to include immediate termination rights for serious breach, loss of required authorisation, dishonesty, or insolvency where permitted by law.
A proper handover clause should require the manager to deliver funds, keys, tenant records, contracts, statements, and other property materials within a defined period after termination.
- Confirm the owner’s title or authority to appoint a manager.
- Describe the property and all services to be performed.
- Agree on fees, spending limits, and reporting arrangements.
- Review the document, sign it, and keep signed copies with the property records.
Frequently Asked Questions
Can a property manager sign a lease for the owner?
Yes, if the agreement expressly grants that authority and local law permits it. The owner may limit the authority by requiring approval of the tenant, rent amount, lease form, or other key terms.
Who pays for repairs arranged by the manager?
Repair costs are usually property expenses paid from the owner’s funds, while the manager may charge a separate coordination fee only if the agreement clearly allows it. The agreement should set approval thresholds and emergency procedures.
How often should the manager provide statements?
Monthly statements are common for rental properties because they show rent received, fees deducted, expenses paid, and the balance due to the owner. The parties may also require annual summaries and copies of invoices.