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Brooklyn Property Management Blog of ProRealty

PROPERTY MANAGEMENT AGREEMENT for Residential Properties

Brooklyn Property Management Blog of ProRealty

PROPERTY MANAGEMENT AGREEMENT

  • PARTIES: 

This agreement is entered into between ________________________________ (hereinafter referred to as “OWNER”), and PROREALTY TEAM, LLC. (Hereinafter referred to as “MANAGER”).

 

  • PROPERTY:

Property Address: _____________________________  The property includes the entire premises in full unless any areas are explicitly excluded in writing by the OWNER.

 

  • TERM:
    1. The term shall begin on the _____ day of _______________ and will be in effect for a one-year period. The Agreement will automatically renew for successive one-year periods at the anniversary date unless either party gives the other at least a thirty (30) day written notice of non-renewal.
    2. It is mutually agreed by and between the parties that this Management Agreement shall be binding upon the OWNER, MANAGER, and their heirs, executors, administrators and assigns.

 

  • EARLY TERMINATION:
    1. MANAGER reserves the right to terminate this agreement with 30 days written notice to the OWNER at any time, for any reason, OR immediately with written or verbal notice, if in the opinion of the MANAGER or legal counsel, it is determined that the OWNER’s actions or inactions are illegal, improper or jeopardizes the safety or welfare of any tenant or other persons. MANAGER may at its option continue to hold OWNER liable for any commissions due, fees, or monies owed MANAGER if tenant(s) remain in the property after such termination by the MANAGER.
    2. If at any time during the term of this Agreement the OWNER feels that MANAGER is not properly performing its duties in accordance with the terms of this Agreement and standard of managers of similar properties, the OWNER shall give the MANAGER a written notice stating in detail the specific complaints. The MANAGER shall have sixty (60) days from receipt of such notice to correct the specific complaints. If said complaints are not corrected to the aforesaid standard, then the OWNER may terminate this Agreement upon thirty (30) days written notice without penalty.  In the event that the MANAGER wishes to terminate this Agreement, it must provide the OWNER with a minimum of ninety (90) days written notice to afford the OWNER the time to locate a successor.

 

  • PROPERTY MANAGEMENT SERVICES:

MANAGER SHALL PROVIDE THE FOLLOWING SERVICES

Note:   Any services marked with an asterisk (*) will be   provided at an additional cost to OWNER

  1. Advertise the lease of the property
  2. Prepare and negotiate leases*
  3. Provide online access to real time financial reports
  4. Monthly financial reporting
  5. Rent collection
  6. Letter/document preparation
  7. Communication with tenants
  8. Move In and move out checklist*
  9. Hold tenant deposits (unless directed otherwise by OWNER)
  10. Provide the tenant(s) access to the resident online portal account

 

  • LEASING:

MANAGER will use its best efforts to lease the property with the following terms:

  1. During the term of this Agreement, MANAGER will advertise the lease of the property.
  2. FIRST MONTH’S RENT AND SECURITY DEPOSIT WILL BE COLLECTED BEFORE OCCUPANCY. Security Deposit shall be equal to the first month’s rent; unless otherwise requested and approved by the OWNER.
  3. Rental rates will be determined by the OWNER. The MANAGER will, upon request, provide its opinion of rental amounts. Late fees owed by tenant(s) shall be collected at the discretion of the MANAGER and MANAGER shall retain any such late fees.
  4. The MANAGER will do their best to rent the property at a rental rate approved by OWNER. MANAGER will present all offers for OWNER’s consideration. NO PROPERTY WILL BE OCCUPIED UNLESS AND UNTIL THE PROPERTY PASSES ANY REQUIRED CITY INSPECTION, AND IF REQUIRED, AN OCCUPANCY PERMIT IS ISSUED.

 

  • REPAIRS AND MAINTENANCE:
    1. MANAGER is granted by the OWNER the right to manage the property as the MANAGER deems necessary.
    2. MANAGER shall provide a 24-hour repair hotline to answer maintenance requests.
    3. MANAGER shall process all maintenance requests. MANAGER will arrange for all repairs, inspections, maintenance and cleanings approved by OWNER.
    4. In the case of an emergency, OWNER gives MANAGER the authority to spend an amount not to exceed Five Hundred Dollars ($500.00) to pay for such emergency repair. MANAGER has the authority to institute repairs, EVEN IF OVER THE AFOREMENTIONED LIMIT, if the emergency affects the safety or welfare of the tenant(s), the property or other persons.
    5. OWNER agrees to withhold $1,000.00 in the reserve funds to be used for any emergency repairs.
    6. MANAGER will notify OWNER in writing of any maintenance requests or needed repairs.
    7. OWNER shall respond to such maintenance and repair requests in a timely manner.
    8. In the event that the OWNER does not approve a maintenance request and chooses to use a third-party contractor, OWNER agrees to pay the third-party contractor directly and shall indemnify and hold MANAGER harmless for payment of the same.

 

  • INSURANCE /FEES/TAXES/UTILITIES/CHARGES:
    1. OWNER shall pay directly any taxes, insurance, mortgages, utility bills, condominium maintenance fees and other charges associated with the unit.
    2. OWNER shall be solely responsible for making contracts for gas, electricity, water, sewer and such other services as necessary and prudent for the operation of the property. This includes calling to transfer utilities into OWNER’s name upon purchasing a new property, upon tenant(s) vacating the property or any other circumstance that requires the OWNER to take action.
    3. OWNER agrees to keep utilities on, even if the property is vacant, during cold temperatures. MANAGER will not be responsible for any damage to the property occurring as a result of the OWNER failing to maintain the proper utilities.

 

  • UTILITIES
    1. If allowed by law and if agreed to by parties, Tenants will be required to have telephone, cable, electric, gas and all other utilities in their own name. OWNER must schedule a shut off date for all utilities once a move in date is scheduled for a tenant. MANAGER assumes no responsibility if the tenants do not transfer utilities into their name.
    2. In any lease where the tenant(s) shall have use of the land OWNER utilities’ and be responsible for all or part of the bill, OWNER shall pay the entire bill in a timely manner and forward copies to this office for reimbursement. Under no circumstances shall the OWNER cause the termination of these services and OWNER agrees to indemnify the MANAGER for any damages or litigation fees/cost incurred by MANAGER if OWNER improperly terminates a utility service.
    3. MANAGER shall in no way be responsible for non-payment of or theft of any utility service by tenant(s).

 

  • CONDOMINIUM/HOMEOWNERS ASSOCIATIONS: 

OWNER is responsible for providing MANAGER with all rules and regulations contained in the Declaration of Condominium or any other media so that the lease can comply with all rules and regulations set forth by the Condominium Association. OWNER agrees that MANAGER is not responsible for any fees, fines or assessments levied by the Condominium Associations or the like.

 

  • DAMAGES AND/OR MISSING ITEMS:

MANAGER is not responsible for damages to the premises or items missing, switched out lost or damaged under any circumstance, including but not limited to, theft, vandalism or negligence of tenant(s) or their guests. In the event the tenant(s) damages property, MANAGER is given the exclusive authority to determine in its professional judgment the amount of damage, charge the tenant accordingly and/or settle with tenant(s) upon the advice of MANAGER’S legal counsel. MANAGER is given the power to make claims upon the security deposit on behalf of the OWNER and MANAGER shall not be held liable for any failure to make claims on any damages which were not readily apparent to MANAGER.

 

  • EVICTION PROCEEDINGS:
    1. MANAGER AGREES TO INFORM OWNER of tenant(s) failure to pay rent, breach of lease terms or discontinued communication by tenant. OWNER shall decide when to initiate eviction proceedings.
    2. OWNER shall pay a flat fee of three hundred dollars ($300) to MANAGER prior to MANAGER retaining legal counsel for the eviction proceedings. This fee includes liaising with the attorney on all administrative matters relating to the eviction proceedings.
    3. OWNER acknowledges that there may be additional expenses, including but not limited to: Moving company to remove tenants’ belongings (required by city ordinances), storage fees, payment for a representative to attend move outs, change locks and secure the property.
    4. Once the MANAGER retains legal counsel for the eviction proceedings, OWNER is not entitled to a refund of fees.

 

  • SCHEDULE OF FEES:
One Time Account Setup Fee $99.00
Monthly Management Fee 6% of the gross rent, plus the applicable taxes
Project Management Fee 10% on Projects with Cost of $2,000 and above*
Lease Renewal Fee $100.00/lease renewal
Outside Contractor/Vendor Access Fee $75.00

*only if full supervision is required

 

  1. PROCEEDS:
    1. MANAGER shall send to OWNER the proceeds collected from the rental of property no later than every 15th of the month minus the management fee, fees and any costs and expenses provided for in this agreement. It is understood that no funds will be released until such time as Tenant’s checks have cleared.
    2. The OWNER agrees to elect a bank account and provide a routing and account number where the MANAGER  can send the rent proceeds.

 

  • INDEMNIFICATION:

OWNER shall indemnify and hold harmless MANAGER against any and all claims made against MANAGER arising out of the management, ownership, leasing, supervision or operation of the Property by MANAGER, except for claims arising from or related to (1) the gross negligence of MANAGER or its officers, agents, or employees; (ii) wrongful willful acts of MANAGER or its officers, agents, or employees; (iii) acts or omissions of MANAGER or its officers, agents or employees which are outside of the scope of authority established by this agreement or which are in breach of the obligations of MANAGER under this agreement; (iv) misapplication of funds by MANAGER, its officers, agents or employees; or (v) fraud of MANAGER, its officer, agent’s or employees.

 

  • NOTICES

Whenever any notice is required in this agreement or desire to communicate formally or legally by OWNER to MANAGER, notice must be in writing either via mail or e-mail to the official business address and email address of the MANAGER.

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year first above written.

 

_______________________

[OWNER]

By:

 

_________________________

 

PROREALTY TEAM, LLC

[MANAGER]

By:

__________________________

President

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