PROPERTY MANAGEMENT AGREEMENT
This Property Management Agreement (the “Agreement”) is entered into on ________________________ (the “Effective Date”), by and between ___________________________________________ of ________________________(the “Manager”) and ______________________________ with an address of ________________________________(the “Owner”), collectively “the Parties”.
- Purpose
Owner owns the property located at ______________________ (the “Property”). Manager is in the business of managing properties of this type. Owner desires to engage the Manager to manage the Property.
- Manager’s Responsibilities
Manager agrees to perform the following duties and responsibilities with regards to the Property:
Advertising of Property. Manager shall advertise the Property for rent, engage and screen potential renters, enter into rental agreement(s) with acceptable renter(s). Owner shall reimburse Manager for all expenses related to such Advertising. Manager shall notify Owner, in advance, of anticipated expenses related with such Advertising.
Collection and Disbursement of Rent. Manager shall be responsible for all collection of Rent earned on the Property. Manager shall then be responsible for disbursement of those proceeds to Owner. Owner shall provide Manager with direction as to how proceeds shall be disbursed. Manager shall further prepare and provide to Owner a detailed accounting all rents, expenses, and disbursements.
Maintenance and Repair. Manager shall be responsible for performing, or hiring necessary personnel to perform, all necessary maintenance and repairs to the Property. Owner shall reimburse Manager for the cost of all such maintenance and repairs. Manager shall provide Owner invoices of the actual costs.
For houses that are fully furnished, Manager shall be responsible for maintenance and repairs, for houses that are not fully furnished, the Owner shall make arrangements with the Manager pertaining to furnishing and maintenance and repairs.
Collection of damages. The Manager will be in charge of collecting any damages. Also, in case of theft of property, the Manager will collect the reimbursement from the tenant.
Legal Proceedings. In the event that collection and/or legal proceedings become necessary with regard to the rental of the Property. Manager shall handle all such proceedings. Owner shall reimburse Manager for all expenses incurred in the pursuit of collection proceedings and/or legal proceedings. Manager shall not be responsible for any legal proceedings that do not result from the management and rental of the Property.
- Compensation
The Parties agree that Manager shall be compensated as follows __________________
- Term
This Agreement shall commence upon the Effective Date, as stated above and will continue until __________________
- Termination
This Agreement may be terminated at any time by either Party upon _______ day’s written notice to the other Party. Upon termination, Manger shall disburse to Owner any monies in Manager’s possession due and owing to Owner within thirty (30) days from the date of termination. Owner shall reimburse Manager for any expenses incurred or approved prior to the date of termination within thirty (30) days from the date of termination.
- Relationship between Owner and Manager
The relationship of the Parties to this Agreement shall be that of independent contractor, it shall not constitute a partnership, joint venture or agency. Neither Party shall have the authority to make any statements, representations or commitments of any kind, or take any action, which shall be binding on the other Party, without prior consent of such other Party.
- Representations and Warranties
Both Parties represent that they are fully authorized to enter into this Agreement. The performance and obligations of either Party will not violate or infringe upon the rights of any third-party or violate any other agreement between the Parties, individually, and any other person, organization, or business or any law or governmental regulation.
- Indemnity
The Parties each agree to indemnify and hold harmless the other Party, its respective affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from negligence of or breach of this Agreement by the indemnifying party, its respective successors and assigns that occurs in connection with this Agreement. This section remains in full force and effect even after termination of the Agreement by its natural termination by either party.
- Insurance
Owner is responsible for obtaining and paying for general liability insurance and other necessary insurance to protect the interests of Manager and all associated personnel.
- Limitation of Liability
UNDER NO CIRCUMSTNACES SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY THIRD PARTY FOR ANY DAMAGES RESULTING FROM ANY PART OF THIS AGREEMENT SUCH AS, BUT NOT LIMITED TO, LOSS OF REVENUES OR ANTICIPATED PROFIT OR LOST BUSINESS, COSTS OF DELAY OR FAILURE OF DELIVERY, WHICH ARE NOT RELATED TO OR THE DIRECT RESULT OF A PARTY’S NEGLIGENCE OR BREACH.
- Severability
In the event any provision of this Agreement is deemed invalid or unenforceable, in whole or in part, that part shall be severed from the remainder of the Agreement and all other provisions should continue in full force and effect as valid and enforceable.
- Waiver
The failure by either party to exercise any right, power or privilege under the terms of this Agreement will not be construed as a waiver of any subsequent or further exercise of that right, power or privilege or the exercise of any other right, power or privilege.
- Legal fees
In the event of a dispute resulting in legal action, the successful party will be entitled to its legal fees, including but not limited to its attorney’s fees.
- Legal and Binding Agreement
This Agreement is legal and binding between the Parties as stated above. This Agreement may be entered into and is legal and binding in the United States. The Parties each represent that they have the authority to enter into this Agreement.
- Governing Law and Jurisdiction
The Parties agree that this Agreement shall be governed by the Tennessee laws.
- Entire Agreement
The Parties acknowledge and agree that this Agreement represents the entire agreement between the parties. In the event that the Parties desire to change, add, or otherwise modify any terms, they shall do so in writing to be signed by both parties.
The Parties agree to the terms and conditions set forth above as demonstrated by their signature as follows:
“MANAGER”
Signed: __________________________
By: ___________________________
Date: ___________________________
“OWNER”
Signed: ________________________
By: _________________________
Date: __________________________
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