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Property Management Agreement for a Rental Property
Table of Contents
Introduction
Definitions
Appointment of Manager
Term of Agreement
Duties and Responsibilities of the Manager
Duties and Responsibilities of the Owner
Compensation
Termination
Indemnification
Insurance
Miscellaneous Provisions
Governing Law
Signatures
1. Introduction
This Property Management Agreement ("Agreement") is made and entered into on [Date], by and between [Owner's Full Name], residing at [Owner's Address] ("Owner"), and [Manager's Full Name], with a principal place of business at [Manager's Address] ("Manager"). The Owner and the Manager may collectively be referred to as the "Parties" or individually as a "Party."
2. Definitions
Property: The rental property located at [Property Address], including all buildings, improvements, and fixtures.
Tenant: Any person or entity leasing the Property from the Owner.
Rent: The monetary amount paid by the Tenant for the use of the Property.
Management Fee: The fee payable to the Manager for the services rendered under this Agreement.
3. Appointment of Manager
The Owner hereby appoints the Manager as the exclusive agent to manage the Property, and the Manager accepts such appointment, subject to the terms and conditions set forth in this Agreement.
4. Term of Agreement
This Agreement shall commence on [Start Date] and shall continue until [End Date], unless terminated earlier in accordance with the provisions of this Agreement.
5. Duties and Responsibilities of the Manager
The Manager shall perform the following duties and responsibilities:
Leasing and Rent Collection: Advertise the Property, screen potential tenants, execute lease agreements, and collect rent.
Maintenance and Repairs: Arrange for and supervise all necessary repairs and maintenance of the Property.
Financial Management: Maintain accurate financial records, provide monthly statements to the Owner, and remit collected rent to the Owner after deducting the Management Fee and any other authorized expenses.
Tenant Relations: Address tenant complaints and resolve disputes in a timely and professional manner.
Legal Compliance: Ensure that the Property complies with all applicable laws and regulations, including health and safety standards.
6. Duties and Responsibilities of the Owner
The Owner shall perform the following duties and responsibilities:
Property Information: Provide the Manager with all necessary information about the Property, including existing leases, warranties, and service contracts.
Funds: Provide sufficient funds for the operation and maintenance of the Property, including payment for repairs and improvements.
Insurance: Maintain adequate insurance coverage for the Property, including liability and property damage insurance.
7. Compensation
The Owner agrees to pay the Manager a Management Fee of [Percentage]% of the monthly rent collected. The Management Fee shall be deducted from the rent collected before remitting the balance to the Owner.
8. Termination
This Agreement may be terminated by either Party upon [Number] days' written notice to the other Party. Upon termination, the Manager shall return all keys, documents, and funds related to the Property to the Owner.
9. Indemnification
The Owner agrees to indemnify and hold harmless the Manager from any and all claims, liabilities, damages, and expenses arising out of or in connection with the Manager's performance of its duties under this Agreement, except for those arising from the Manager's gross negligence or willful misconduct.
10. Insurance
The Owner shall maintain insurance coverage for the Property, including liability and property damage insurance, and shall provide the Manager with proof of such insurance upon request.
11. Miscellaneous Provisions
Entire Agreement: This Agreement constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, whether written or oral.
Amendments: Any amendments to this Agreement must be in writing and signed by both Parties.
Severability: If any provision of this Agreement is found to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.
Notices: All notices required or permitted under this Agreement shall be in writing and shall be deemed given when delivered personally, sent by certified mail, or sent by email to the addresses provided by the Parties.
12. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the Republic of Kenya.
13. Signatures
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date first above written.
[Owner's Full Name]
Owner
[Manager's Full Name]
Manager
TLDR
This Property Management Agreement outlines the terms and conditions under which a property manager will manage a rental property on behalf of the owner. It includes details on the duties and responsibilities of both parties, compensation, termination, indemnification, and governing law.
Conclusion
A well-drafted Property Management Agreement is essential for ensuring a clear understanding between the property owner and the manager. It helps in defining roles, responsibilities, and expectations, thereby minimizing potential disputes and ensuring smooth management of the rental property.
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