Property management agreement template
Before a landlord can entrust you to look after their properties, you'll need to sign a property management agreement. Use this free property management agreement template to get started.
Before a landlord can entrust you to look after their properties, you'll need to sign a property management agreement. Use this free property management agreement template to get started.
Property management agreements are a crucial tool for estate agents and landlords. But how do they work, what should they cover, how do and how should you manage your property management agreement template? Find out in this guide to property management agreements in 2023.
Alternatively you can dive straight in and download the simple property management agreement PDF above.
A property management agreement is a legal document that outlines the business relationship between a property owner and a property management company or a property manager. This contract contains the terms and conditions under which the manager agrees to manage a property on behalf of the property owner.
A property management agreement should set out the expectations of both parties, clearly stipulating the terms of their relationship, the scope of the manager's authority, and their contractual obligations. By doing this, a property management agreement acts as a crucial reference point, providing transparency and accountability throughout the commercial relationship.
A property management agreement is put in place when a landlord wants to entrust a company or individual to look after their property. This is a popular arrangement for a few reasons.
Firstly, property managers have specialist experience when it comes to looking after properties and arranging tenants for them. This means that they are often better placed to make strategic and financial decisions relating to the property than the landlord.
But property management agreements are particularly common when a landlord has multiple properties in different areas. It's difficult to give all of these the attention they deserve, so a landlord will usually assign a property manager to do this work on their behalf.
Property management agreements are important because they set out clear rules for both the property owner and the manager. Properties are an expensive asset, so they carry a lot of risk.
If drafted properly, property management agreements protect everyone involved in the transaction by making sure expectations and rules are crystal clear, which can help avoid any disputes down the line.
This helps to minimize the risk typically associated with outsourcing the management of assets as the contract can set clear boundaries and minimizes the scope for error.
You now understand the importance of having a property management agreement in place. The next step is knowing what this agreement should say and include.
Typically, a property management template will outline the following things:
To get started, you need a property management agreement. To create one of these, you need a property management agreement template (assuming you're not intending to write this complex legal contract from scratch, which is not recommended, even for a simple Airbnb property management agreement).
After some digging, the property manager finds a template, fills in all the details, likely in fields with square brackets, crosses their fingers, and send it off to the legal team for a check-up (if there is a legal team). Legal swoops in, fixes a few things here and there, and sends it back over email.
The property manager then sends the property management agreement to the landlord for review and signing. They might have a few comments or changes, so they mark those up in a separate Word document and send it back. If there's any back-and-forth about the terms, they'll likely save a new version each time and pass it around.
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Once they've eventually agreed the details of the contract, the parties need to sign it. There are a few options at this stage. Either they can sign in wet ink and scan the document, or they can use an electronic signature tool like HelloSign or DocuSign.
Once it's signed, they'll send it out to all the key stakeholders - business team, legal team, you name it - and hopefully, remember to save it in the shared drive.
Now imagine what the process of creating property management agreements looks like for estate agents and property managers responsible for lots of properties, each with their own unique characteristics and terms.
There are a few problems with the approach we just described:
Fortunately, there's a faster and more effective way to create property management agreements. You can automate them. More and more forward-thinking businesses are starting to automate routine contracts like these to boost efficiency.
Hosting your property management agreement template in a contract management platform can save you time, eliminate headaches, and allow your legal and business teams to focus on higher-impact work.
With Juro's automated templates, generating a property management agreement can be done in moments. Here’s how it works.
Juro's automated contract templates can be pre-defined, approved and locked downby the business team responsible for contracting. This allows the business to set safeguards in the contract, with built-in rules and logic that makes contracts easier and safer for other teams to self-serve with and customize.
For example, you can set a rule at template-level so that the dollar value of the agreement will automatically change which clauses appear in the contract. They can do the same to vary the template depending on the billing approach you choose, and the value of the contract. This is achieved through Juro's conditional logic feature.
Commercial teams can then generate property management agreements in seconds from these templates. They simply fill in a basic Q&A form with key details like the property owner's name, payment terms, and services included and watch these data points get pulled into the relevant smartfield. This is quick, easy, and doesn't need any legal expertise.
After the agreement is ready, it's sent to the property owner to review. Instead of downloading it, changing things in Word, and emailing it back, they can suggest edits and leave comments directly in the browser. This way, the back-and-forth is quicker, more efficient, and all changes are tracked in one place.
When both parties are happy with the agreement, they can sign it electronically using Juro's native eSignature tool. This eliminates the need for wet ink signatures and scanning. Instead, property managers and owners can add a legally binding signature to the agreement from any device.
Once the agreement is signed, it's automatically saved in a secure, data-rich contract repository. This means you can find your agreements quickly when you need them, without rummaging through emails or shared drives.
Since contracts created in Juro are built as structured data, you can also create custom contract dashboards to display the key data points in your real estate contracts. You can also search through your contracts with Juro's OCR-enabled search functionality.
At Juro, we understand how important it is to get property management agreements right. However, making and managing these agreements can take up too much time and resource.
By automating this process, you save time, lower risks, and let your teams focus on higher-value tasks, like procuring new properties for you to manage.
If you're ready to join the 6000+ companies already using Juro to power their contracts, hit the button below to find out more about how Juro can streamline real estate contract management for your business.
Juro is the #1-rated contract platform globally for speed of implementation.
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