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What Should a Property Management Agreement Address?

The property management agreement is a very important document


Property management companies that manage rental property for the property owner need a property management agreement to govern the relationship between the property manager and the property owner. Not having a well-drafted property management agreement will cause many problems for both the property manager and owner and it will hinder your management company from developing the way it should to provide better service and produce more profit.


So, what should a property management agreement address? Below is the table of contents for the property management agreement we use. Each heading and subheading has its own provisions that govern the parties’ relationship and how the property manager and owner are to act during the term of the agreement.


Parties and Term

  1. Parties

  2. Certification

  3. Term

  4. Manager Services and Authority

Services and Authority

Independent Contractor

License Limitations

Leasing

  1. Rental Rate

  2. Lease Term

  3. Lease Agreement and Legal Notices

  4. Advertisement

  5. Screening Tenants

  6. Remedy For Tenant Early Termination

  7. Liquidated Damages For Tenant Early Termination

  8. Tenant Default

  9. “Cash-For-Keys”

  10. Evictions

Financials

  1. Monies Held and Used for Owner

  2. Costs and Expenditures

  3. Receipt and Disbursement

  4. Order of Disbursement

  5. Payments on Owner’s Account

  6. Survivability

  7. Records

  8. Tax Preparation and Filings

  9. Mailing

  10. Compensation and Fees

Maintenance and Property Conditions

  1. General

  2. Rent-Ready Condition

  3. Repairs That Fall Under F.S. ch. 489

  4. Repairs, Materials, and Commission

  5. Utility and Service Bill Payments

  6. Non-Emergency Repairs

  7. Emergency

  8. Bids/Estimates

  9. Move-Out

  10. Contracted Services

  11. Utilities and Landlord Agreements

  12. Mold or Contaminant Testing

  13. Swimming Pool (if applicable)

  14. Compliance Costs

  15. HVAC

  16. Appliances

  17. Home Warranty

Correspondence

  1. Correspondence

  2. Absence

Pets

  1. Pets

  2. Emotional Support and Service Animal

Third Parties and Neighbors

Owner Responsibilities

  1. Owner Duties

  2. Owner Provisions

  3. Owner Liability and Casualty Insurance

  4. Owner Certification

  5. Lead-Based Paint Disclosure

  6. Owner Default/Breach

  7. Amenities and Community Property

  8. Homeowner and Condo Association (HOA/COA) and Ordinances

  9. Statutory Landlord Obligations under F.S. 83.51

Inspections

  1. Routine

  2. Tenant-Related

  3. Government and Insurance Related

Amending and Terminating the PMA

  1. Amending the Agreement

  2. Termination of PMA

Additional Terms

  1. Multiple Properties

  2. Multiple Owners

  3. Fair Housing

  4. Attorney’s Fees and Jury Trial

  5. Acts of God

  6. Construction Lien Prohibition Notices

  7. Indemnification

  8. Binding Agreement

  9. Entirety Clause

  10. Error & Omission

  11. Tenant in Default

  12. Assignment

  13. Addenda

Each of these headings need to be addressed in your property management agreement. Use an experienced property management law attorney to draft your property management agreement. Also, help your attorney by sharing your management experience relative to these topics and the business model you want to implement as it relates to each of these headings listed above so that your attorney can prepare an agreement specific to your business model.


Experience is the best of all teachers, so your property management agreement will develop and change over time as you learn more about yourself, your business, other people, and your goals for your business. As you encounter situations your the management business that need to be addressed as a matter of policy and procedure, keep note and take the idea to your company’s leadership for suggestions. Once the policy or procedure is approved, take the matter to your attorney to draft a provision that will be incorporated into your property management agreement.


If you are a property investor and need a property management company to manage your rental properties, aDoor Property Management, LLC can help you. Click the button below to submit an application.




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