Skip to content

Free template

Property Management Agreement template

A property management agreement authorizes a property manager to lease, maintain, and collect rent for an owner's property, and sets out the manager's duties, authority, and fees.

Replace everything in [BRACKETS], export to PDF, then send it for signature.

1. Parties

This Property Management Agreement (the "Agreement") is entered into as of [EFFECTIVE DATE] between [OWNER NAME], of [OWNER ADDRESS] (the "Owner"), and [MANAGER NAME / COMPANY], of [MANAGER ADDRESS], license number [LICENSE NUMBER, if applicable] (the "Manager").

2. Property

The Owner appoints the Manager as its exclusive agent to manage the property located at [PROPERTY ADDRESS], consisting of [DESCRIPTION, e.g. a single-family home / NUMBER residential units] (the "Property").

3. Manager's Duties

The Manager will: (a) market the Property and screen prospective tenants in compliance with fair housing and anti-discrimination laws; (b) prepare and sign leases on the Owner's behalf on terms approved by the Owner; (c) collect rent, deposits, and other charges; (d) arrange routine maintenance and repairs; (e) respond to tenant requests and emergencies; (f) conduct inspections [FREQUENCY]; (g) handle notices, lease renewals, and, where necessary, evictions in accordance with law; and (h) keep accurate records.

4. Owner's Duties

The Owner will provide the Manager with all information and documents needed to manage the Property, maintain property insurance naming the Manager as an additional insured where possible, fund reserves and expenses as required, and comply with laws applicable to the Owner.

5. Repairs and Spending Authority

The Manager may authorize repairs and expenses up to [AMOUNT] per item without the Owner's prior approval. Expenses above that amount require the Owner's approval, except in emergencies that threaten health, safety, or the Property, where the Manager may act immediately and notify the Owner promptly.

6. Funds and Accounting

The Manager will deposit rents and security deposits in a separate [TRUST / CLIENT] account as required by law and will not commingle them with its own funds. The Owner will maintain a reserve of [RESERVE AMOUNT] with the Manager. The Manager will provide a monthly statement of income and expenses and remit net proceeds to the Owner by [DAY] of each month.

7. Management Fees

The Owner will pay the Manager: (a) a management fee of [PERCENTAGE]% of rent collected [OR: AMOUNT per month]; (b) a leasing fee of [AMOUNT OR PERCENTAGE] for each new tenancy; (c) a lease renewal fee of [AMOUNT]; and (d) [OTHER FEES, e.g. maintenance coordination markup, eviction coordination fee]. Fees may be deducted from rents collected.

8. Term and Termination

This Agreement begins on the Effective Date and continues for [INITIAL TERM], then renews automatically for successive [RENEWAL TERM] periods unless either party gives [NUMBER] days' written notice. Either party may terminate for material breach not cured within [NUMBER] days of notice. On termination, the Manager will provide an accounting, transfer funds, deposits, keys, leases, and records to the Owner within [NUMBER] days. [OPTIONAL: Early termination fee: AMOUNT.]

9. Indemnification and Liability

The Owner will indemnify the Manager against claims arising from the condition of the Property or the Manager's proper performance of this Agreement, except to the extent caused by the Manager's negligence, willful misconduct, or breach of law. The Manager will maintain professional liability insurance of at least [AMOUNT].

10. Compliance

Both parties will comply with applicable landlord-tenant, fair housing, health and safety, and licensing laws. The Manager is not required to take any action it reasonably believes is unlawful.

11. Governing Law and General Terms

This Agreement is governed by the laws of [GOVERNING LAW JURISDICTION]. It is the entire agreement between the parties on its subject, may be amended only in writing signed by both parties, and may not be assigned without the other party's written consent.

12. Signatures

The Parties agree that this Agreement may be signed electronically and in counterparts, and that electronic signatures have the same effect as handwritten signatures. OWNER: [OWNER NAME] Signature: ____________________ Date: [DATE] MANAGER: [MANAGER NAME / COMPANY] Signature: ____________________ Name: [SIGNATORY NAME] Title: [SIGNATORY TITLE] Date: [DATE]

When to use this template

  • When an owner hires a property manager for residential rentals
  • For commercial, mixed-use, or multi-unit property management
  • When an owner lives far from the rental property
  • When a manager takes over properties from another management company

How to fill it in and get it signed

  1. Enter the owner and manager details, any license number, and the property address.
  2. Review the manager's duties and set the repair spending limit and inspection frequency.
  3. Fill in the management, leasing, and renewal fees, the reserve amount, and the remittance date.
  4. Set the initial term, renewal, notice period, insurance amounts, and governing law.
  5. Upload the agreement to eSignSimple and send it to the owner and manager for e-signature.

This template is general information, not legal advice. Laws differ by country and state; have a lawyer review contracts with high stakes.

Frequently asked questions

What do property managers typically charge?

Fees vary by market and property type. A monthly fee based on a percentage of collected rent is common, often with separate leasing and renewal fees.

Can a property manager sign leases for the owner?

Yes, if the management agreement gives them that authority. This template lets the manager sign leases on terms the owner approves.

How do I terminate a property management agreement?

Follow the notice and termination terms in the agreement. Make sure it requires the manager to hand over funds, deposits, keys, and records promptly.

Can property management agreements be signed electronically?

In most jurisdictions, yes. eSignSimple records an audit trail with timestamps, IP addresses, and a document hash.