Sample Property Management Agreement: Fill & Download for Free

If you are hiring a property management company or you are the property management company, the agreement should contain the following:Term or length of the agreement to manage the property.Exact amount to be paid monthly for the service.Exactly what items or conditions would "trigger" additional payments such as extra snow plowing than previously expected and agreed upon. The extra payment can be agreed to on an hourly basis per project outside the scope of the regular duties of the management company.A comprehensive list of the exact duties the management company will do in exchange for the fee paid monthly, quarterly or annually. I always suggest never agreeing to being paid once per year or annually. Payments should be made either monthly or quarterly.There should be language in the agreement that specifies reasons why the contract can be canceled prior to the full term. Examples are failure to pay on time, failure to perform duties as outlined in agreement, failure to maintain liability insurance…Also there should be language in the agreement that talks about the exact way the property management company proceeds with any and all work or repairs that are needed. This means that a "work order" from the owner or tenant must be submitted and approved prior to the actual work being done. This way everyone can keep track of legitimate needs for repair or replacement, costs of repairs and tracking the time frame that the work is requested to when it is completed. This will also help both parties track their budget for the year.Emergency contact information as well as procedures to be followed must be outlined in the agreement so everyone knows in advance what to do in case of a specific emergency such as electrical faults, fire, tenants that get locked out of their units, injured contractors in the property, the need to maintain all required by law safety equipment on property site and that this equipment is tested regularly as required by law. Examples are smoke and carbon monoxide detection equipment, fire extinguishers, multiple exit doors maintained and not blocked and any other local or state occupied b building codes.You can find sample property management agreements on line to use as a template.Just make sure everything is in writing so everyone knows exactly what is expected of them and for what amount compensation will be given.

The decision whether to let a property management company handle everything on your rental depends partly on how little or how much you are able to take care of the rental yourself and whether you are knowledgeable and experienced in managing a rental property yourself. You also will have to pay the management company between 10% to 20% of the gross rents. If you decide to consider this, there are a number of things you should do to be able to confidently select one.Make sure you interview at least 2 to 3 property managers before you select one for your property. Carefully read the sample contract for each and compare what each one will do and, by omission, what they don’t do. Ask for names, addresses and phone numbers of several of their existing clients with similar type of property in your location and contact them for how satisfied they are. How long the property manager has been in business and the number of current clients they have is also a clue.Review their fee structure and how complete they manage, from finding qualified renter prospects, to completely evaluating rental applicants for: verified employment, monthly gross income, credit report, prior landlord references and contacting them. Also make sure they have a large list of licensed professional repairmen available in the area in all building trades, including structural, plumbing, electrical, HVAC, roofing, landscaping, etc. Review the rental forms they use to make sure they are current and thorough, including month-to-month and lease rental agreements, inventory lists, move-in/move-out checklist, furnishings provided, etc., and how they actively oversee the maintenance and repair work. Make sure they are knowledgeable about tenant/landlord laws and regulations.There’s lots to know about rental property management and you must find the property manager(s) who are up to speed, responsive and thorough. Be careful of the contract you sign to make sure that it does not lock you into a long term commitment without recourse if you later change your mind. In any event, you still must oversee the management company’s effort on your behalf to make sure their work is complete and that you are getting your money’s worth from them.

I’m not sure what you’re asking.Leases are private agreements. There is no way to know if a lease has been broken unless the matter ends up in court.What you may be asking is “what is the default rate for apartment leases in the USA?”This would be just a guess, but you’d have to survey a statistically meaningful sample of property management companies nationwide in order to estimate a national default rate for apartment leases.From my experience in NYC leasing, I would estimate the default rate to be 1% -3% of all leases. But I suspect the national rate would be much higher.