A property management agreement is a crucial document that outlines the responsibilities and obligations of both the property owner and the property manager. This agreement is a legal contract that sets the terms and conditions for the management of a property. If you are a property owner looking to hire a property manager, it is important to understand what is included in a property management agreement.

Here are some of the key elements that are typically included in a property management agreement:

1. Scope of Services: This section outlines the specific services that the property manager will provide. These services may include rent collection, maintenance and repairs, tenant screening, and property inspections.

2. Fees and Payment Terms: This section details the fees that the property owner will pay to the property manager for their services. It will specify the payment schedule, whether it is monthly, quarterly or annually, and any additional fees that may apply.

3. Term of the Agreement: This section specifies the duration of the property management agreement, establishing the start and end dates of the agreement.

4. Termination Clause: This clause outlines the circumstances under which either party may terminate the agreement. This may include breach of contract, non-payment of fees, or other violations of the agreement.

5. Insurance: This section outlines the insurance requirements for the property owner and property manager. It typically requires the property manager to carry liability insurance and the property owner to carry property insurance.

6. Maintenance and Repairs: This section specifies the responsibilities of the property manager in terms of maintenance and repairs. It will detail how repairs will be handled, who will be responsible for paying for them, and how they will be documented.

7. Tenant Relations: This section outlines how the property manager will interact with tenants. It may address issues such as rent collection, lease renewals, and tenant disputes.

8. Marketing and Leasing: This section details the responsibilities of the property manager when it comes to marketing and leasing the property. This may include advertising the property, showing it to prospective tenants, and screening potential tenants.

In conclusion, a property management agreement is a legally binding document that outlines the responsibilities of both the property owner and the property manager. It is important to understand what is included in this agreement to ensure that both parties are clear on their obligations and expectations. If you are a property owner considering hiring a property manager, make sure to review the agreement carefully and ask any questions before signing.