PROPERTY SERVICES AGREEMENT


 

PREPARED FOR:
 

DATE:
20/Jul/2021 

REFERENCE:
75046 

PREPARED BY:
John Smith
Your Company
P: +1 (0) 405 123 123
E: [email protected]

Introduction

Dear [Recipient]


When you hire [Sender Company], you will be partnering with a leader in property management in [Location] for the past 10 Years. Our clients receive the highest standards of service from a team of professionals who ensure the seamless operation and maintenance of your property 24 hours a day.

Our clients include multi-unit residential properties, single-family homes, office spaces, retail locations, and more:

  • Property 1
  • Property 2
  • Propert 3
What To Expect

Responsibilities Of Manager

Under the terms of this property management agreement, [Client Company], hereby referred to as “Owner,” authorises [Sender Company], hereby referred to as “Manager,” to perform business-related transactions on behalf of Owner for the property at [Address] in [City], hereby referred to as “Property.” Manager is given full authority to carry out all lawful necessary steps to fulfil this agreement.

A. Exclusivity Of Services

Manager has the exclusive right to manage and lease Property for the duration of this agreement. Both parties agree that Manager has sole cause of any lease of, or agreement to any lease of, Property, whether made in writing or orally.

B. Rent Collection

Manager will collect from tenants rent payments on or before the due date, and issue receipts to tenants. Owner will be paid out all income monthly in a manner of their choice, minus Manager pay and expenses incurred. Manager will provide a monthly accounting of all rent payments for Owner’s records. Disbursement to Owner will occur on or before [Disbursement.Date] each month, as long as tenants have fully paid rent. Manager assumes responsibility of any rent payment disputes with tenants.

So what's it going to cost?

PRODUCTS/SERVICE

PRICE

COST

TAX

TOTAL

The greater of [Percentage] percent of the gross rental income due to be paid by tenants under existing or future rental agreements, or a flat dollar amount of [Flat.Dollar.Amount]. Payment will be due by Owner to Manager on the 1st of each month based on tenant commitments the preceding month.
1.00 1.00 0.10 1.10
If Manager conducts property reviews for publication, Owner shall pay [Review Dollar Amount] per review. Such reviews will include a written overview of Property and recommended preservation projects, including a preliminary cost estimate for each project.
1.00 1.00 0.10 1.10
Price TAX Total
One-off Cost 2.00 0.20 2.20
Total 2.20

Should Property be sold to any tenant or other party during or after the terms of this agreement, Manager will be considered integral to such sales and therefore entitled to [Sales Percentage] percent commission on the gross sale price. Additionally, Manager can list Property at the request of Owner for the agreed upon commission rate if a sale is made.

Agency Appointment

Manager shall be considered an agent of Owner, given full authority to perform necessary actions to evict tenants and/or collect unpaid rent. Manager has the right to enter Property at any time during the length of this property management agreement.

Limitation Of Liability

Manager, and all employees or independent contractors hired by Manager, shall have no liability under this agreement, including such liability related to injury to persons or damage to Property under Manager’s supervision, except in instances of gross negligence or willful misconduct by Manager.

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.

Rental Rates

Manager shall base rent prices on commercially reasonable rates for the region in which Property is located. Manager is given discretion to rent units in Property at a minimum and maximum rate within [Dollar.Figure] of previously agreed upon rates. Manager shall present offers to Owner for review and consideration if they fall above or below previously agreed upon rates. Unit rental prices are as follows:


Type of Unit Price Range
Studio, 1 bathroom, 450 sq. ft. $500-700/month
1 bedroom, 1 bathroom, 700 sq. ft. $900-1100/month
2 bedroom, 2 bathroom, 1100 sq. ft. $1300-1500/month


Manager will be responsible for advertising of units, tenant screening for credit worthiness and ability to pay monthly rental rate. Manager will be responsible for obtaining lease agreements, renewals, and terminations; and to take all necessary legal actions to recover unpaid rent or tenant costs associated with damage to Property or its furnishings.

Terms And Termination

Manager and Owner enter into this property management agreement on [Contract.Start.Date]. This agreement shall automatically renew after one year unless Owner provides 60 days prior notice in writing to Manager.

Property Management Agreement

This property management agreement begins as of:

This agreement is entered into by and John Smith for the Property at [Address] in [City].

Signed By: