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Take advantage of our property management contract template to safely manage a property. Download our pre-prepared form to set the terms of your agreement in minutes.
Last Update March 4th, 2026
Reviewed by John Roach, Esq.
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This legal instrument establishes a formal agency relationship between the owner of a property and the company or individual manager charged with its administration.
Similar to other legal forms, the PMA creates enforceable boundaries for fiscal management and maintenance liabilities.
Having a Property Management Agreement Form readily available allows owners to take a step back with ease. The hope is that the chosen company will act with their best interests at heart.
A PMA equips owners with all relevant terms and stipulations tied to the management of a rental unit. This contract delineates the way the said firm will handle the day-to-day functioning of the leased property.
The main purpose of this legal document is to clarify the services falling under the purview of the property manager, and those that the owner is accountable for. In addition, it discloses any service fees involved.
The presence of a formally signed contract goes a long way in reducing misunderstandings or disputes concerning roles and responsibilities.
The kind of Property Management Agreement form required hinges on the nature of the real estate, your predilections as the property owner, and the array of services that the manager is expected to deliver.
Contract structures vary according to the asset class:
You require a Property Management Agreement when you, as the owner, decide to delegate the daily operations of your property to a Property Management company or a property manager.
The necessity for this type of agreement can arise in a multitude of scenarios – when you own multiple properties and find it challenging to manage them all, when you're located at a distance from your rental property, or when you simply do not have the inclination or the expertise to manage real estate.
Having a PMA in place ensures that there is clarity about the roles, responsibilities, and expectations for both parties.
In addition, a Property Management Agreement becomes essential when the property to be managed falls into a specific category, like commercial or industrial, and you need a manager with specialized skills.
This contract also proves beneficial when the property ownership involves multiple stakeholders, thus needing an unbiased third party for effective management.
A professional manager can help optimize the usage and returns from your property, and having an agreement can provide the framework for this relationship, thereby minimizing misunderstandings and potential disputes.
Identify the Principal and Agent as follows:
The property owner, often referred to as the "landlord" or "principal," is the person or entity that legally owns the property. They are hiring the property manager to oversee the day-to-day operations of the property on their behalf.
On the other side of the agreement is the property management company or the individual property manager, sometimes called the "agent."
This party is tasked with managing the property following the terms of the agreement. Their responsibilities may include marketing the property, collecting rent, maintaining the property, addressing tenant issues, and providing regular reports to the owner.
It's crucial to note that there could be additional parties involved in a Property Management Agreement under specific circumstances.
For instance, if the property is owned by a group of investors, all members of the group could be parties to the agreement. Similarly, if the Property Management company is a large organization with different departments handling various aspects of Property Management, the agreement could involve multiple parties within the company.
In some cases, there may also be multiple property management companies that work to manage different aspects of a property. This is particularly true with regard to some larger endeavors.
The scope of an Agent's authority depends on the Property Management Agreement (PMA). These duties can cover a wide variety of responsibilities tailored to the needs of each individual property owner.
These form a significant aspect of property management. This often involves setting rent levels and collecting rent payments, which requires an understanding of current market rates to ensure competitiveness and profitability.
It is essential for a property management agreement to clarify whether the owner or the property manager is responsible for setting rental rates and negotiating the terms of leases.
It includes finding and screening potential tenants, a process that ensures the selection of reliable and respectful occupants for the property. The property manager is also responsible for addressing any complaints, ensuring a satisfactory living environment.
In more challenging situations, Property Managers may be required to manage eviction processes, adhering to local and state laws.
This involves the physical upkeep of the property, which includes conducting regular maintenance checks to ensure the property remains in good condition. These checks help to prevent extensive damage.
Property managers are also responsible for handling emergency repairs, acting swiftly to resolve issues that may arise.
Understanding and complying with laws is a critical aspect of property management.
Property managers must keep abreast of the latest local, state, and federal legislation that governs the renting and upkeep of rental properties.
Managers are entrusted with maintaining exhaustive records for the property, which include a detailed account of income and expenses. This allows them to keep track of financial health and operational costs.
They also need to register inspections, signed leases, maintenance requests, and any complaints or repairs.
Property managers are commonly responsible for managing the budget for a building, which involves careful planning, monitoring of income and expenses, and strategic decision-making. This includes specific details as to the budget for a building that is authorized for a property manager, which can be important to ensure that there are no large discrepancies between the expectations of the landlord and the property manager.
Regular inspections are carried out to assess the current conditions of a property, ensuring it remains in a good state of repair.
These checks also serve to confirm tenant compliance with lease terms, safeguarding the property's value and condition.
Property managers are in charge of advertising the property to fill vacancies. They are usually also in charge of showing the property to interested parties, providing a comprehensive tour and answering any queries.
This responsibility involves the negotiation of contracts with vendors and the resolution of conflicts.
The property manager must be able to foster positive relationships with a diverse group of stakeholders, which creates a good rapport through effective communication and customer service.
Regular updates to the property owner are an integral part of this process. This includes updates on the property's financial performance, providing a clear picture of its profitability and any areas for improvement.
To prevent litigation, ensure the Property Management [1] draft contains these core provisions:.
It is important for a Property Management Agreement to include provisions that clearly define the roles, responsibilities, and expectations of both the property owner and the property manager.
These provisions serve as a framework for effective communication, outline the scope of services to be provided, address financial arrangements, and establish procedures for conflict resolution.
By incorporating them, the PMA becomes a comprehensive and legally binding document that safeguards the interests of all parties involved and promotes a successful and harmonious working relationship.
Follow this protocol to revoke management authority without breach[2]:.
Communication should be clear, respectful, and conducted in good faith, as maintaining a positive relationship can help avoid potential legal complications.
In need of a reference point for drafting your own PMA? This section provides a sample Property Management contract for your convenience.
By examining this Property Management Agreement sample, you can gain valuable insights into the structure, content, and key provisions that should be added to your own form.
In addition to the Property Management Agreement Form, other important real estate documents play a crucial role in rental Property Management and tenant-landlord relationships:
Sources: [1] Elements of a Property Management Agreement. Oregon.gov.
[2] Property Management Agreement. Thomson Reuters Practical Law.
When entering into a Property Management contract, it's natural to have questions and seek clarity.
This section addresses some frequently asked questions (FAQs) regarding Property Management contracts, providing valuable insights to property owners and helping them make informed decisions.
A PMA brings several advantages to property owners, such as the the ability to delegate operational oversight, resulting in efficient management and time savings.
Other benefits include effective marketing, tenant screening, improved tenant relationships, streamlined collection, proactive property maintenance, financial transparency, and the potential for optimizing overall investment returns.
Property managers can sign leases on behalf of owners as part of their responsibilities outlined in the Property Management Agreement.
This allows them to handle tenant selection, lease negotiation, and agreement execution, offering convenience for property owners who may not be available or prefer not to handle these tasks themselves.
Licensing for property managers depends on state and local rules. Many states require a real estate license, while others may have specific Property Management licenses or certifications. Other states and localities have specific requirements regarding property manager background checks.
Managers need to familiarize themselves with the requirements in their jurisdiction and ensure compliance to operate legally and provide professional services to owners.
