This Property Management Agreement is an agreement between the owner of
commercial property and a manager or management company, setting forth the terms
and conditions of a contract for the management of the property. This document
contains the duties of the agent and of the owner, as well as the length of the
agreement and fee to be earned by the agent. The language and terms of this template
document can be modified to fit the needs of the drafting parties. This form should be
used by the owner of commercial property seeking to hire a property manager or by a
property management company.
COMMERCIAL PROPERTY MANAGEMENT AGREEMENT
This Commercial Property Management Agreement (this “Agreement”) is entered into on this
__________ day of ______, ______ by and between __________ (“Owner”) and __________
WHEREAS, Owner holds legal or equitable title to the property located at [PROPERTY
WHEREAS, Owner desires to retain the services of Agent and Agent desires to perform such
services in the manner and upon the terms and provisions hereinafter set forth.
NOW THEREFORE, in consideration of the mutual covenants made by the parties hereto, and
other good and valuable consideration, the parties agree to the following terms.
Owner hereby employs Agent to lease and manage Owner's commercial property (the
“Property”) located [ADDRESS] and more particularly described as: [LEGAL DESCRIPTION].
2. TERM OF AGREEMENT
This Agreement shall continue for a period of one year from the date hereof, and shall be
automatically renewed from year to year unless terminated by either party upon ____ (___) days
written notice sent to the other party.
3. DUTIES OF AGENT
In order to properly manage and lease the Property, Agent shall have the following duties and
A. Best Efforts
Agent shall use its best efforts to search for and retain tenants for the Property.
B. Lease Negotiations
Agent shall handle all lease negotiations with tenants. All such agreements are
subject to the approval of Owner.
Agent shall employ, supervise, discharge, and pay all employees or independent
contractors who are reasonably required to properly manage and operate the
Property. Agent shall pay all employees and independent contractors and fully
complete all necessary federal and state tax returns and payments of related taxes
on behalf of Owner.
Agent shall purchase all necessary supplies for the proper management of the
E. Repairs and Maintenance
Agent shall contract for or undertake the making of all necessary repairs and the
performance of all other necessary work on the Property, including all required
alterations to carry out this Agreement properly. However, no expenses shall be
incurred for such matters in excess of ____________ dollars ($__) for any single
item without the express consent of Owner, except where required in case of
F. Mortgages and Other Expenses
From the rents received, Agent shall pay all operating expenses and such other
expenses as requested by Owner. This may include the payment of mortgages
G. Collection of Rents
Agent shall collect the rents and other income from the Property promptly when
such amounts come due and take all necessary steps to collect same. Agent shall
perform all reasonable acts on behalf of Owner for the protection of Owner in
collection of such amounts.
H. Financial Records
All monies collected by Agent shall be deposited into a bank account as specified
by Owner. Such monies of Owner shall not become mingled with funds of Agent.
Agent shall provide Owner with periodic statements accounting for all expenses
and shall open its records to Owner upon demand.
4. COMPENSATION OF AGENT
Owner shall pay Agent, as full compensation for the services of Agent, the sum of __________
dollars ($______) per month. This amount shall be payable to Agent when such funds become
available from the amounts collected by Agent pursuant to this Agreement.
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5. DUTIES OF OWNER
Owner shall provide all necessary documents and records to and fully cooperate with Agent in
all matters with respect to this Agreement.
Owner shall indemnify and hold Agent completely harmless with respect to liability, damages,
costs, and expenses in connection with any damage or injury whatsoever to persons or property
arising out of the use, management, operation, occupation, ownership, mainte