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Property Management Agreement - A Contract for Professional Property Oversight
A Property Management Agreement is a legal contract between a property owner and a property manager or management company. It’s an essential document that defines the manager’s responsibilities, from handling day-to-day operations to dealing with tenants. This agreement protects both parties by clarifying the scope of services, payment terms, and legal obligations, which helps to ensure the property is managed effectively and professionally.
Your Property Management Agreement created in Bind will include:
The Property and Scope of Services
This section identifies the property being managed, including its address and type. It then details the specific services the manager will provide, such as marketing, collecting rent, handling repairs, and managing tenant relationships. This provides a clear understanding of the manager's duties.
Management Fees and Owner Obligations
The agreement specifies how much the owner will pay the manager. This is typically a percentage of the gross rental income. It also outlines the owner's responsibilities, such as providing access to the property, maintaining insurance, and giving timely approvals for repairs.
Liability and Indemnity
This crucial section defines the manager's liability, stating they are not responsible for any loss or damage unless it's a result of their gross negligence. The owner also agrees to protect the manager from third-party claims related to the property, which is a key part of risk management.
Term and Termination
The agreement establishes the duration of the contract and the conditions under which it can be terminated early. This provides a clear framework for starting and ending the relationship.
Governing Law and Jurisdiction
This is a vital part of any international agreement. It specifies which country's laws will govern the contract and which courts will have exclusive jurisdiction over any disputes. This provides a clear legal framework and a predictable path for conflict resolution.
Creating a Property Management Agreement with Bind is the easiest way to formalize a professional relationship. Our tool guides you to create a comprehensive and legally sound document that protects your interests. Once the agreement is ready, you can sign it electronically, making the entire process fast and secure.
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