PROPERTY MANAGEMENT AGREEMENT

PROPERTY MANAGEMENT AGREEMENT

THIS PROPERTY MANAGEMENT AGREEMENT (herein “Agreement”) is made and entered into this date of _______________ (herein “Effective date”) by and between ________________________ (hereinafter referred to as “Property Owner/ Owner”) and _______________________ (hereinafter referred to as “Manager” and/or “Agent”).

BACKGROUND

  1. The purpose of this document is to set out clearly & concisely the extent of the leasing and management service offered and the scale of fees charged.
  2. The Owner desires to retain the Agent, a licensed and Insured Georgia real estate broker, as the agent to exclusively rent, lease, operate, and manage Owner’s premises for and on behalf of the Owner in accordance with the terms of this Agreement;

IN CONSIDERATION OF the premises, and of the mutual promises and undertakings herein contained, the parties, intending to be legally bound, do agree as follows:

  1. PROPERTY DETAILS

The Property Owner is the owner of _______________________ which consists of _______ units located at ___________________ (address) and more particularly described in “Exhibit B” attached hereto.

  • PRICING

The Pricing is divided into 3 packages. The packages are more particularly described in “Exhibit A” attached hereto.

  • AUTHORITY

The Property Owner confirms that he is the sole or joint owner of the real estate and has the right to delegate authority to the Manager to supervise, manage, lease, operate and maintain the property under the terms of this agreement.

The Manager confirms that he is an Insured licensed Agent

  • MAINTENANCE
    • The Manager and the Owner agree that maintenance shall be the responsibility of the Agent. The Owner will however compensate the Manager for such services according to the terms herein.
    • Manager agrees to make the Owner aware of any ongoing maintenance problems. Retained maximum expenditure limit means that the Manager has authority to spend up to this amount _________ (or other amount as individually agreed) on reasonable improvements or repairs in any single monthly accounting period without prior reference to the Landlord.
    • It is agreed that in an emergency or for reasons of contractual or legal necessity the Agency may reasonably exceed the limits specified, where reasonable endeavors have been made to contact the Owner.
    • The Manager endeavors to select competent tradesmen at reasonable prices but is unable to personally guarantee the standard of workmanship or any liability arising thereof, although the Owner retains the right to pursue any claim against appointed tradesmen for substandard work.
    • By law, it is necessary to carry out an annual inspection and service for the central heating and any gas appliances. The Manager will carry this out on the Landlord’s behalf and administer the necessary inspection and maintenance records. The costs involved will be debited to the Landlord’s account.
  • OBLIGATION OF OWNER
    • Owner certifies that unless provided otherwise herein, all systems and furnished appliances are in good working order and repair.
    • Owner certifies that Property is in good and habitable condition and Owner, will at all times, be responsible for the maintenance of Property in:
  • a good habitable condition; and
  • Compliance with all applicable laws, ordinances and regulations of all government authorities.
    • Upon the execution of this agreement, Owner will provide to Manager Keys for Property and ensure that Property is clean and the grounds are in good condition.
    • Owner shall maintain adequate fire and extended coverage insurance on Property, and will, at all times, maintain landlord’s liability insurance for Owner and will cause Manager to be named as additional insured under such liability insurance.
    • Owner will provide Manager with evidence of such insurance coverage prior to date of occupancy by tenant and thereafter, within seven (7) days of Manager requesting the same.
    • Owner further certifies to Manager that Owner is unaware of any environmental contamination, or hazardous, toxic, dangerous or unsafe conditions or products on or in Property.
    • Owner shall keep current in all mortgage obligations, property taxes, association fees, or any other obligations which could lead to a foreclosure action against the Property.
    • Owner and Manager agree that the tenant is not a third-party beneficiary and nothing in this paragraph shall limit Manager’s other legal remedies to collect from Owner any unpaid fees due to Manager.
  • TERM AND TERMINATION
    • This Agreement shall be effective as of the Effective Date and shall have an initial term of ____________________years.
    • After the lapse of the initial term, upon mutual agreement of both Parties, the Parties shall renew the contract thereafter on a _______________ basis. (Yearly/monthly etc)
    • In the event either party decides not to renew this contract, a 30-day written notice shall be given to the other party expressing intention not to renew the contract.
    •  In the event f termination caused by the Owner’s default, Owner shall immediately pay Manager all fees and commissions they would have earned had this Agreement not been terminated but instead had been in effect for the entire term set forth above. Manager may deduct the full amount of such fees and commissions from any monies being held coming to Manager which would be due Owner.
  • LEASING TERMS
    • Tenants shall lease premises for a term of no more than _________________ months and not less than __________________________ months.
    • A tenant shall sign a lease agreement form upon occupancy. At least 3 (three) copies of the lease form shall be made by which the tenant, the Property Owner and manager shall each have a copy of the form.
    • The Owner and/ or the Manager shall have discretion to either approve a tenant or disapprove a tenant. The reason for disapproval shall not contravene any written law, whether federal, state or local.
    • The lease form shall form part of this agreement and is labeled “Exhibit C”
  • PAYMENT TERMS

For services provided by the Manager, the Owner agrees to pay the manager:

  • Leasing commission of ___________________ upon a new tenant moving into the property
    • A renewal commission of ______________ upon a tenant remaining beyond initial term of lease
    • Management payment of ______________.
    • In the event Tenant purchases or contracts to purchase the Property either during the lease term or within _____ years after the end of the lease term, Owner agrees to pay Manager upon the closing of the sale of the Property a real estate commission of _________________________________.
  • PAYMENT OF PROPERTY FUNDS
    • The Manager is responsible for collection of all funds including rents by tenants. Funds of the owner shall be deposited in the Account as agreed upon by the owner.
    • Details of the Account: _______________________________________________
    • Deposits shall be made every _________ day of every ________________(week/month etc)
    • Manager has the Authority to deduct from Owner’s funds amount used to cater for expenses such as management fees, commissions and other amounts owing to Manager; Manager’s out-of-pocket expenses associated with managing the Property including, without limitation, copying costs, postage, mileage expenses at the IRS maximum rate, costs to conduct credit checks, costs associated with evicting tenants, etc.; all costs to maintain, repair and improve the Property including emergency repairs to the extent approved in writing by Owner or to the extent the same have been approved elsewhere herein; and all amounts needed to pay bills for which Manager is responsible for paying under the lease of the Property.
  • NON-DISCLOSURE OF CONFIDENTIAL INFORMATION

Neither Party will use, copy, adapt, alter or part with possession of any information of the other which is disclosed or otherwise comes into its possession under or in relation to this Agreement and which is of a confidential nature. This obligation will not apply to information which the recipient can prove was in its possession at the date it was received or obtained or which the recipient obtains from some other person with good legal title to it or which is in or comes into the public domain otherwise than through the default or negligence of the recipient or which is independently developed by or for the recipient.

  1. RELATIONSHIP

The Parties acknowledge and agree that the relationship between the Property Owner and Property Manager shall be deemed to constitute an agency relationship or between the parties.

  1. INDEMNITY

The property Owner hereby agrees to indemnify, defend and save harmless the Manager from and against all claims, liabilities, losses, damages, costs, expenses, judgments, fines and penalties arising out of or in connection with the leasing and management of the Property except in the case of negligent actions, errors, omissions, willful misconduct and/or fraud by the Property Manager in connection with the property management.

  1. NON-DISCRIMINATION

Parties to this contract agree to comply with all state and federal fair housing laws and regulations and shall not unlawfully discriminate on the basis of race, color, creed, national origin, sex, age, handicap, familial status, sexual orientation or gender identity.

  1. NOTICES AND COMMUNICATIONS

All notices, requests, demands or any other communications between Property owner and Manager shall be in writing and shall be addressed at the following addresses: ________________________________________________________________________

  1. WAIVER AND DISCLAIMER OF WARRANTIES

TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, OWNER PROVIDES THE PROPERTY “AS IS” AND WITH ALL FAULTS, AND HEREBY DISCLAIMS WITH RESPECT TO THE PROPERTY ALL WARRANTIES AND CONDITIONS, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND/OR LACK OF NEGLIGENCE. THE ENTIRE RISK AS TO THE QUALITY, OR ARISING OUT OF PARTICIPATION IN OR THE USE OF, THE SERVICES AND THE PREMISES, REMAINS WITH MANAGER AND MANAGER HEREBY WAIVES ALL RIGHTS OF RECOVERY FOR ANY LOSS RELATED TO ACCESS TO, PARTICIPATION IN OR USE OF THE PREMISES.

  1. ENTIRETY AND MODIFICATION

This contract, in addition to any other addendums and exhibits, shall represent the entire agreement between the Property Owner and Manager, and supersedes any previous written or oral agreement. This agreement may be modified at any time, provided there is written consent of both parties to this contract.

  1. SEVERABILITY

The parties agree that if any portion of this contract is found to be void or unenforceable, it shall be struck from the record and the remaining provisions will retain their full force and effect.

  1. APPLICABLE LAW

This Agreement and the interpretation of its terms shall be governed by and construed in accordance with the laws of the State of ________________ and subject to the exclusive jurisdiction of the federal and state courts located in that State.

  1. ADDENDUMS

Exhibit A- Package Pricing

Exhibit B- Property Details

Exhibit C- Lease Agreement Form

IN WITNESS WHEREOF, the parties hereto have executed this agreement, or have caused this Agreement to be duly executed on their respective behalf by their respective officers thereunto duly authorized, as of as of the dates below:

Property Owner (Landlord):

Name _______________________________________

Signature ______________________________________

Date ______________________________________

Property Manager (Agent):

Name _____________________________________

Signature ____________________________

Date ________________________________

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