Free Property Management Agreement Template
Define management duties, fees, spending authority, and termination terms between property owners and managers. Create a professional property management agreement with our free US template.
Address: 8750 Ridgewood Apartments, Dallas, TX 75231
Type: Multi-Family Residential
Total Units: 24
Currently Occupied: 21
Property Description: Three-story apartment complex with 24 units (12 one-bedroom, 8 two-bedroom, 4 three-bedroom), gated parking lot with 36 spaces, on-site laundry facility, community courtyard
Manager owes Owner the fiduciary duties of a real-estate agent, including loyalty, care, obedience to lawful instructions, full disclosure, confidentiality, and the duty to account for funds, consistent with Restatement (Third) of Agency §§ 8.01–8.15 (in particular § 8.14, duty to use reasonable effort and care).
This Agreement shall commence on April 1, 2026 and shall continue for a term of one (1) year, unless earlier terminated in accordance with the termination provisions of this Agreement. Upon expiration of the initial term, this Agreement shall automatically renew on a month-to-month basis unless either Party provides written notice of non-renewal at least thirty (30) days prior to the expiration of the then-current term.
Management Fee: 8% of the monthly gross rent actually collected from the Property.
Payment Schedule: Management fees shall be deducted by Manager from collected rents on a monthly basis before disbursement of remaining funds to Owner.
Tenant Placement Fee: Manager shall receive a one-time fee of 750.00 USD for each new tenant placed in the Property, payable upon execution of a new lease agreement.
Late Fee Revenue: Manager shall retain 50% of all late fees collected from tenants as additional compensation. The remaining balance shall be credited to Owner.
Manager shall maintain accurate records of all income and expenses related to the Property and shall provide Owner with a detailed accounting statement monthly.
- Tenant screening, background checks, and credit verification
- Rent collection, deposit handling, and late fee enforcement
- Maintenance coordination, vendor management, and emergency repairs
- Financial reporting, accounting, and owner disbursements
Manager shall perform all duties in a professional manner consistent with prevailing industry standards for property management services in the applicable jurisdiction.
Fair Housing and Anti-Discrimination Compliance. In marketing, screening, leasing, renewing, and managing the Property, Manager shall comply in all respects with the federal Fair Housing Act, 42 U.S.C. §§ 3601–3619, and HUD’s implementing regulations at 24 C.F.R. Part 100, prohibiting discrimination based on race, color, national origin, religion, sex (including sexual orientation and gender identity per HUD’s 2021 Memorandum), familial status, and disability. Manager shall also comply with all applicable state and local fair-housing statutes, source-of-income protections (where enacted), and reasonable-accommodation and reasonable-modification obligations. Any public-facing leasing office, rental office, or similar facility shall comply with Title III of the Americans with Disabilities Act, 42 U.S.C. §§ 12181 et seq., and the ADA Standards for Accessible Design.
Tenant Screening. Any consumer-report-based tenant screening conducted or procured by Manager shall comply with the federal Fair Credit Reporting Act, 15 U.S.C. §§ 1681 et seq., including the permissible-purpose, pre-adverse-action, and adverse-action notice requirements of 15 U.S.C. §§ 1681b and 1681m, as well as any state “mini-FCRA” statutes and criminal-history or eviction-history limitations enacted in the jurisdiction of the Property.
Trust Accounting and Security Deposits. Manager shall hold all tenant security deposits and prepaid rents in a trust, escrow, or segregated operating account in compliance with applicable state law, including, where applicable, California Civil Code § 1950.5 (interest, accounting, and 21-day itemization), New York General Obligations Law § 7-103 (segregation and interest), Texas Property Code §§ 92.101–92.110 (30-day return and itemization), and Florida Statutes § 83.49. Manager shall never commingle trust funds with its own operating funds except as expressly authorized by statute.
Emergency Authority: In the event of an emergency threatening the safety of tenants or the structural integrity of the Property, Manager is authorized to spend up to two (2) times the standard spending limit without prior Owner approval. Manager shall notify Owner of any emergency expenditure within twenty-four (24) hours.
All expenditures exceeding the authorized limit require Owner's prior written approval. Manager shall obtain at least two (2) competitive bids for any single repair or capital improvement exceeding the spending authority limit.
- Summary of all rents collected and outstanding balances
- Itemized list of all expenses paid from the operating account
- Current bank account balance and reconciliation
- Vacancy report and tenant status updates
- Maintenance and repair log with costs
Manager shall maintain all financial records related to the Property for a minimum of seven (7) years. Owner shall have the right to inspect and audit all books and records at any time upon reasonable notice.
- Maintain the Property in compliance with all applicable building codes, health and safety regulations, and environmental laws
- Provide Manager with all necessary keys, access codes, and security information for the Property
- Cooperate with Manager in all matters relating to the management and leasing of the Property
- Respond to Manager's requests for approval within a reasonable time frame (not to exceed five (5) business days)
- Maintain current all mortgage payments, property taxes, and assessments on the Property
Insurance Requirements: Owner shall maintain, at Owner's sole expense, the following insurance coverage throughout the term of this Agreement:
- Property / hazard insurance
- General liability insurance
Owner shall name Manager as an additional insured on all liability policies and shall provide Manager with certificates of insurance upon request.
If the reserve fund balance falls below fifty percent (50%) of the required amount, Manager shall promptly notify Owner, and Owner shall replenish the fund within fifteen (15) business days.
Capital Expenditure Threshold: Any single expenditure or improvement exceeding 3,000.00 USD shall be classified as a capital expenditure and shall require Owner's prior written approval, regardless of the reserve fund balance.
Termination for Cause: Either Party may terminate this Agreement immediately upon written notice if the other Party:
- Material breach of this Agreement
- Fraud, embezzlement, or misrepresentation
- Gross negligence or willful misconduct
- Provide Owner with a final accounting of all income, expenses, and outstanding balances within fifteen (15) days of termination
- Transfer all security deposits, reserve funds, and other Owner funds to Owner or Owner's designee
- Deliver all keys, access codes, and security devices related to the Property
- Provide copies of all current lease agreements, tenant correspondence, and maintenance records
- Assign or transfer all vendor contracts and service agreements as directed by Owner
- Provide a current rent roll, tenant contact information, and outstanding work order status report
Manager shall not be entitled to any management fees for periods following the effective date of termination, except for fees earned but not yet paid as of the termination date.
Owner shall indemnify and hold Manager harmless from all claims, costs, and liabilities arising from the ownership, management, or condition of the Property, except to the extent caused by Manager's negligence, willful misconduct, or breach of this Agreement.
What Is a Property Management Agreement?
A property management agreement is a legally binding contract used throughout the United States between a property owner and a property management company or individual manager. It establishes the terms under which the manager will oversee the day-to-day operations of a rental property, including tenant relations, rent collection, maintenance coordination, and financial reporting. This American agreement protects both parties by clearly defining responsibilities, compensation, and authority limits.
American property owners commonly use management agreements when they own rental properties in locations far from their primary residence, when they lack the time or expertise to manage tenants directly, or when they own multiple units that require professional oversight. Whether the property is a single-family home, a multi-unit apartment complex, a condominium, or a commercial space in the United States, a written agreement prevents misunderstandings and disputes.
Without a formal management agreement, property owners risk unauthorized spending, unclear fee arrangements, and difficulties when the business relationship needs to end. A well-drafted agreement addresses fee structures, spending authority thresholds, insurance obligations, termination procedures, and transition protocols, giving both the owner and manager a clear framework to operate within.
What's Covered in This Template
Doxuno's property management agreement template includes all essential sections needed to establish a professional management relationship. Each section can be customized to fit your specific property and management arrangement.
Parties Identification
Property Description
Fee Structure
Agreement Term
Manager Duties
Spending Authority
Financial Reporting
Insurance Requirements
Reserve Fund
Termination Clause
Transition Protocol
Governing Law
How to Create a Property Management Agreement
Creating a property management agreement requires attention to detail and a clear understanding of both parties' expectations. Our template guides you through each section with live preview so you can see your agreement take shape in real time. Follow these five steps to complete your document.
- 1
Identify the Parties
Enter the full legal names and contact information for the property owner and the management company. Include business addresses, phone numbers, email addresses, and any applicable property management license or registration numbers. Accurate identification prevents disputes over who is bound by the agreement.
- 2
Describe the Property
Provide the complete street address of the property being managed. Select the property type, specify the total number of units, note how many are currently occupied, and add any relevant details about amenities, parking, or common areas. This ensures the scope of management is clearly documented.
- 3
Set the Fee Structure and Term
Choose between a percentage of rent collected, a flat monthly fee, or a hybrid arrangement combining both. Set the agreement start date, pick the contract duration, define the payment schedule, and specify any tenant placement fees or late rent fee splits. Clear compensation terms prevent financial disagreements.
- 4
Define Manager Duties and Authority
Select which responsibilities the manager will handle, such as tenant screening, rent collection, maintenance coordination, financial reporting, eviction proceedings, vacancy marketing, property inspections, and legal compliance. Set the spending authority limit per occurrence and configure emergency spending rules to protect the property.
- 5
Establish Termination and Insurance Terms
Configure the notice period required for termination, define grounds that allow immediate termination for cause, set any early termination fees, and specify the transition period for handing over records and funds. Choose the required insurance policies the owner must maintain and set the reserve fund amount for ongoing expenses.
Legal Considerations for US Property Management Agreements
U.S. property management agreements create binding legal obligations for both the owner and the manager. Understanding the American legal framework helps both parties protect their interests and avoid common pitfalls that can lead to costly disputes or regulatory violations.
This template is provided for informational purposes and does not constitute legal advice. Property management regulations vary by state and locality. Consult a licensed attorney in your jurisdiction for guidance specific to your situation.
Reviewed by legal professionals. The content on this page and the template clauses have been reviewed by licensed attorneys in the United States to ensure accuracy and legal soundness for standard property management scenarios.
State Licensing Requirements
Property management licensing laws differ significantly from U.S. state to state. Many American states require property managers to hold a real estate broker's license or a dedicated property management license. Some U.S. states allow exemptions for property owners managing their own properties or for managers working under a licensed broker. Before signing a management agreement, verify that the manager holds all required licenses and registrations in your state. Operating without proper licensing can void the agreement and expose both parties to penalties.
Independent Contractor vs. Employee Relationship
A properly drafted property management agreement establishes an independent contractor relationship, not an employment relationship. This distinction has important implications for tax withholding, liability, workers' compensation, and control over work methods. The agreement should clearly state that the manager controls how services are performed and is responsible for their own taxes, insurance, and employee obligations. Misclassifying the relationship can result in back taxes, penalties, and unexpected liability for the property owner.
Spending Authority and Fiduciary Duties
Property managers often handle significant amounts of money on behalf of owners, including rent payments, security deposits, and maintenance funds. The agreement should clearly define spending limits, require competitive bids above certain thresholds, and establish separate trust accounts for owner funds. Most U.S. states have specific laws governing how American property managers must handle client funds, including requirements for trust accounts and detailed record-keeping. Clear spending authority protections prevent unauthorized expenditures and financial disputes.
Frequently Asked Questions
Protect Your Property Investment
Create a professional U.S. property management agreement in minutes. Define duties, set fees, establish authority limits, and build a clear American framework for your management relationship.
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