Property management agreement template
A property management agreement is the contract between a rental owner and the company that runs the property for them. It sets what the manager does, what they can spend without asking, how rent money flows, and what every service costs. Owners use it to know what they're paying for; managers use it to avoid the 2 a.m. call asking whether a water heater can be replaced. This template covers a single home or a small building.
Updated November 5, 2026 · 4 min read
The contract
Gray blanks are yours to fill in before you send. Each signer fills in the blanks in their color.
- You, before sending
- Owner
- Manager
Property Management Agreement
This Property Management Agreement (the "Agreement") is made on Agreement date between Owner name (the "Owner") and Management company, license number Manager license number (the "Manager").
1. The property
The Owner appoints the Manager as its exclusive agent to manage Property address and units (the "Property"). The Owner confirms it owns the Property, or has authority from its owners, and can enter into this Agreement.
2. Term
This Agreement starts on Start date and runs for an initial term of Initial term in months months, then renews from month to month until either party ends it under section 10.
3. What the Manager will do
- Market vacant units, show them, screen applicants with written criteria applied equally to all, and sign leases on the Owner's behalf at rents within the range the Owner approves.
- Collect rent, deposits and other charges, and hold tenant security deposits as the law requires.
- Handle tenant requests and arrange routine maintenance and repairs, using licensed and insured vendors where the law requires.
- Inspect the Property at least Inspection frequency, and at every move-in and move-out.
- Serve notices, and coordinate evictions with an attorney the Owner approves, at the Owner's cost.
- Keep accurate records and give the Owner a monthly statement of income and expenses, with year-end figures for the Owner's taxes.
- Other services: Other services
4. Spending limit and emergencies
The Manager may spend up to Repair approval limit on any single repair without the Owner's approval. Larger repairs need the Owner's approval in writing, which may be by email. In an emergency that threatens health, safety or the Property, the Manager may spend what's reasonably needed to protect them and will tell the Owner as soon as possible.
5. Money handling
The Manager will deposit rents in a trust or client account as the law requires, keep the Owner's funds separate from its own, and pay the Owner's net proceeds by day Owner payout day of each month. The Owner will keep a reserve of Operating reserve in the account for repairs and expenses, and will top it up when asked.
6. Fees
- Management fee: Management fee of rent actually collected each month.
- Leasing fee for each new tenant: Leasing fee.
- Lease renewal fee: Renewal fee.
- Onboarding fee for each new property: Setup fee.
- Charge for coordinating major repairs or projects: Project coordination fee.
Late fees and application fees paid by tenants belong to Who keeps tenant fees. The Manager won't add a markup to vendor invoices unless it is stated here: Vendor markup.
7. The Owner's duties
The Owner will keep property insurance and liability insurance of at least Owner liability coverage on the Property, naming the Manager as an additional insured; give the Manager copies of leases, deposit records, keys and warranties; disclose known defects, including lead-based paint information for homes built before 1978; and pay for repairs needed to keep the Property safe and fit to live in. The Owner will not ask the Manager to do anything that breaks fair housing or other laws.
8. Fair housing
The Manager will market and rent the Property without discrimination on any basis protected by federal, state or local law, and will consider reasonable accommodation and modification requests as the law requires.
9. Liability
The Owner will indemnify the Manager against claims arising from the condition of the Property or the Owner's acts, except where caused by the Manager's negligence, willful misconduct or breach of this Agreement. The Manager will indemnify the Owner against claims arising from the Manager's negligence, willful misconduct or breach. The Manager isn't responsible for tenants' failure to pay or for damage tenants cause, but will pursue them as this Agreement provides.
10. Ending the Agreement
After the initial term, either party may end this Agreement with Days of notice to terminate days' written notice. During the initial term, the Owner may end it early by paying a termination fee of Early termination fee. Either party may end it at once if the other seriously breaches it and doesn't fix the breach within 30 days of notice. On ending, the Manager will hand over within 30 days the tenant deposits, leases, keys, records and remaining funds, after paying fees and expenses owed. Existing leases stay in force.
11. General
This Agreement is governed by the laws of the state of State. It is the whole agreement between the parties, can be changed only in writing signed by both, and may not be assigned by either without the other's consent. Electronic signatures count as original signatures.
Owner's details
Mailing address: Owner mailing address Phone: Owner phone Email: Owner email
I have read this Agreement, including the fees in section 6 and the spending limit in section 4.
Owner
Manager, by its authorized agent
Opens it in SignMaster as a template you can edit and send.
A starting point, not legal advice. Have a lawyer review it for your state and situation.
On this page
What the agreement settles
Owner and manager disputes are rarely about big things. They're about a leasing fee the owner didn't expect, a repair the manager approved without asking, or how long it takes to hand over deposits when the owner switches companies. Each of those has a section here, with a blank for the number you agree.
Many states require anyone who leases property or collects rent for others for a fee to hold a real estate broker or property management license, and to keep owners' and tenants' money in a trust account. The template has a blank for the license number and commits the manager to trust account handling; your state's rules decide the details.
What the template covers
- Appointment and term: the property and units, an exclusive appointment, an initial term in months and month-to-month after.
- Services: marketing and screening with equal criteria, leasing within an approved rent range, rent collection, maintenance, inspections, notices and owner statements.
- Spending limit: what the manager can spend per repair without asking, and an emergency exception.
- Money handling: a trust account, separate funds, a monthly payout date and an operating reserve.
- Fees: management fee on rent collected, leasing, renewal and setup fees, project coordination, who keeps tenant late fees, and any vendor markup.
- Owner duties: insurance naming the manager, handing over records, disclosing known defects and paying for necessary repairs.
- Fair housing and liability: a non-discrimination commitment and indemnities that run both ways.
- Ending it: notice after the initial term, an early termination fee, and a deadline to hand over deposits, keys and records.
Mistakes owners and managers make
- Charging the management fee on rent due instead of rent collected. Owners expect to pay on what actually came in; say which one you mean.
- No spending limit, or one so low that every faucet needs an email. Pick a figure that lets routine repairs happen the same day.
- Hidden vendor markups. If you add a percentage to contractor invoices, put it in writing; owners find out from the invoices anyway.
- Ignoring who keeps tenant late fees. It's a common surprise for owners, and the template makes you fill it in.
- No handover deadline. When an owner leaves, they need deposits and records quickly to stay compliant with deposit laws.
How to sign up a new owner with SignMaster
- 1
Add the agreement to your templates
Choose Use this template. It's set up with the owner signing first and your company second, so you countersign once the owner agrees.
- 2
Fill in your standard terms once
Enter your fee schedule, spending limit, payout day and notice periods in the gray blanks and save. For each new owner, you only change the property, dates and anything you negotiated.
- 3
Send it with the onboarding packet
Add a W-9 and any other forms to the same envelope, so the owner signs everything in one sitting from their phone. They fill in their own contact details and tick that they've read the fees.
- 4
Track it to signature
Automatic reminders and a sign-by date keep it moving. When it's done, both of you get the signed PDF with a certificate of completion.
Updating terms across your portfolio
When you change your fee schedule or switch software and need every owner on the new agreement, bulk send sends each owner their own copy from your owner list. Columns for each owner's name and email, plus columns named after gray blanks such as Property address and units and Start date, fill in each agreement. Save the export as CSV UTF-8. With webhooks on Crew and Company, each signed agreement can also notify your other systems automatically.
Questions? Answers.
What is a typical property management fee?
It varies by market and property type. Many managers charge a percentage of rent collected for ongoing management, plus a leasing fee for each new tenant. Whatever you agree, put each fee in section 6 so there are no surprises.
Does a property manager need a license?
In many states, yes: leasing or collecting rent for others for a fee usually requires a real estate broker or property management license. Check your state's real estate commission before you sign or offer the agreement.
Can the owner cancel a property management agreement?
Yes, under section 10: after the initial term with written notice, or earlier by paying the termination fee if you set one. Either side can end it immediately for a serious breach that isn't fixed within 30 days.
Can owners sign the agreement electronically?
Yes. A management agreement is an ordinary contract, so an e-signature is valid. Owners who live out of state can sign from their phone with no account and no printer.