GA property managers, draw up a contract with a commercial landlord with this downloadable Georgia Commercial Property Leasing and Management Agreement.
- The manager is retained on an exclusive basis to rent, lease and manage the rental property.
- The manager will be paid a percentage of the monthly rental amount for the property. If the manager undertakes additional work outside the scope of its duties, additional fees will be payable.
- The owner authorizes the manager to collect rents, sign leases, issue late payment notices, undertake eviction proceedings, purchase supplies, make repairs, and pay all recurring bills on the property.
- The manager will maintain two trust accounts, one for the security deposits and one for the operating funds.
- The property owner indemnifies the manager against claims arising from managing the property, including claims arising from the owner not making full disclosure about the property.
- The manager is authorized to put in place fire, liability, steam boiler, pressure vessel and any other type of insurance required to be maintained on the property.
This Georgia Commercial Property Leasing and Management Agreement is provided in MS Word format, and is easy to download, fill in and print.
NOTE: Under O.C.G.A. Title 10-6A-1 et seq., a broker is prohibited from representing a consumer of brokerage services, such as a buyer, seller, landlord, or tenant, unless the parties first enter into a written agreement in order to prevent misunderstandings and misinterpretations. PROPERTY LEASING AND MANAGEMENT AGREEMENT (COMMERCIAL) THIS AGREEMENT made and entered into this _____ day of ______________, 20_____ by and between: [NAME OF PROPERTY MANAGER] an individual resident in / a ________________ corporation with an office in the City of ________, Georgia (“Broker”) - and - [NAME OF PROPERTY OWNER] an individual resident in / a ________________ corporation with an office in the City of ________, Georgia (“Owner”) WHEREAS Owner owns that certain commercial rental property located at _____________________________________ [street address of property], _____________________ [city], _________________ County, Georgia, ____________________ [zip code] and legally described as more particularly described in Exhibit A attached hereto and made a part of this Agreement by reference (the “Property”); AND WHEREAS Owner desires to retain Broker as Owner’s agent, on an exclusive basis, to rent, lease, manage and operate the Property for and on behalf of Owner, and Broker desires to accept such retainer; NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements contained in this Agreement, the parties hereby agree as follows: 1. Engagement and Grant of Authority. Owner hereby retains Broker on an exclusive basis, and Broker accepts the retainer, to rent, lease and otherwise manage the Property, in accordance with the terms and conditions of this Agreement. Owner grants Broker the authority and power to perform its duties and responsibilities under this Agreement. 2. Term and Termination. The term of the Agreement shall be for a period of ____ [months/year(s)], beginning on the _____ day of ______________, 20___ and terminating on the _____ day of ______________, 20____, unless earlier terminated by either party upon thirty (30) days’ written notice to the other party. If Owner terminates this Agreement prior to the end of the term, Owner agrees to pay all fees then due or becoming due in future under any unexpired rental agreement in effect at the time of termination. Broker shall be at liberty to deduct the full amount of such fees from any monies paid to Broker hereunder which are payable to Owner. 3. Management Fees. For providing the services hereunder, Broker shall be compensated on the following basis: For leasing: Monthly fee of $_________________ or ________% of monthly rental income For management: Monthly fee of $_________________ or ________% of monthly rental income For repairs and -2- decoration: Monthly fee $_________________ plus expenditures 4. Additional Fees and Expenses. (a) In the event that Owner requests Broker to undertake work outside of the duties and responsibilities of Broker hereunder, the parties shall agree upon an appropriate hourly fee before the work begins. Such work would include such tasks as refinancing, improvements to the Property, major restoration after fire, flood or other damage, and similar work. (b) In the event that Owner sells the Property at any time to a tenant placed by Broker (or to a spouse or related entity of such tenant), Owner agrees to pay Broker a finder’s fee of ___% of the sale price. This obligation shall survive the expiration or termination of this Agreement, and Broker shall release Owner from contract at the close of escrow. 5. Duties of Broker. At all times during the term of this Agreement, Broker shall perform the following duties, and Owner hereby grants Broker the authority and powers necessary to perform such duties: (a) exclusively advertise the availability of the Property for rent or lease, display “For Rent” signs on the Property, establish a competitive rental rate for the Property in accordance with existing market conditions, and change the rental rate as necessary to stay competitive, with the objective of maximizing Owner’s return; (b) sign, renew or cancel leases and rental contracts for the Property; (c) collect monthly rents, security deposits, late fees, and other charges from tenants with respect to the Property, issue receipts therefor, and deposit the same into separate trust accounts maintained for that purpose; (d) conduct or arrange for inspections of the Property prior to a tenant moving in and again when a tenant moves out; (e) perform reference background checks on prospective tenants, and report poor credit rating to a National Credit Reporting Agency on any prior tenant leaving owing a balance of more than $_______; (f) terminate tenancies, and sign and serve in the name of Owner such notices as are appropriate; (g) make or arrange for and supervise repairs and alterations, and to do decorating on the Property; (h) make contracts for utilities and services to the Property, including electricity, gas, fuel, water, window cleaning, trash removal, and other services as Broker shall deem advisable, and Owner agrees to assume the obligation of any such contract at the termination of this Agreement; (i) purchase supplies and pay all monthly or recurring bills with respect to the Property. Broker shall not be liable for late fees assessed unless due to Broker’s negligence. Broker agrees to secure the prior written approval of Owner on all expenditures in excess of $_________ for any one item except for: (i) monthly or recurring operating charges, (ii) emergency repairs exceeding the maximum if, in the opinion of Broker, such repairs are necessary to prevent damage and to protect the Property, the occupants, Owner and/or Broker, -3- (iii) charges which must be paid to maintain services to tenants or to avoid the assessment of penalties or fines, (iv) turn-over maintenance expenses to prepare the Property for move-in of new tenants; (j) pay all mortgage indebtedness, property and employee taxes, and special assessments with respect to the Property, and to place fire, liability, steam boiler, pressure vessel or any other insurance required to be maintained on the Property, and Broker is hereby directed to accrue and pay for the same from the Operating Trust Account (as hereinafter defined, with the following exceptions: __________________________________________________________________; (k) hire, fire and supervise all contractors and employees required for the operation and maintenance of the Property, including maintenance and janitorial staff, and an on-site licensed property manager; it being understood and agreed that any employees hired shall be deemed employees of Owner and not Broker, and that Broker may perform any of its duties through Owner’s agents, employees, or attorneys, and shall not be responsible for their acts, omissions, or negligence if reasonable care has been exercised in their appointment and retention; (l) contract with third parties, including affiliates of Broker or companies owned by Broker, to perform services including, but not limited to, repairs and maintenance, accounting, recordkeeping, and legal services. Any such contract made with an affiliate of Broker or a company owned by Broker will be on fair and reasonable terms and shall be no less favorable than could reasonably be negotiated with unaffiliated persons or companies. Owner agrees that Broker may deduct the costs of such services from the rental revenues coming due to Owner; (m) institute and prosecute legal actions and proceedings in Owner’s name to terminate leases for cause, to remove tenants from the Property, to recover costs for damage to the Property, and for any or all of such purposes, Broker may employ attorneys and incur court costs and litigation costs at Owner’s expense. Broker in its discretion is also authorized to settle or compromise any such legal actions or proceedings; (n) provide Owner with detailed monthly statements of all funds received and disbursed on Owner’s behalf, and shall remit to Owner the balance of such funds, if any, remaining after Broker deducts its management fees and other charges due Broker or other parties, and after deducting the amount necessary to maintain the reserve set out in Section 6(b) hereof; (o) within __ days after the end of each calendar year, prepare and submit to Owner a complete report of receipts and disbursements relating to the Property for the preceding year; (p) submit to the IRS at the conclusion of each calendar year a Form 1099 indicating the total income from the Property and any other tax related documents as may be required by law, and provide a copy thereof to Owner. 6. Receipt and Payment of Funds; Maintenance of Trust Accounts. (a) Broker shall open and maintain separate trust accounts for operating expenses (“Operating Trust Account”) and security deposits (“Security Deposit Trust Account”). Broker will hold all security deposit funds in the Security Deposit Trust Account. Broker will deposit all rents received from the Property into the Operating Trust Account, and will pay expenses involved in the operation of the Property from funds on hand in the Operating Trust Account. (b) Broker shall maintain a reserve in the Operating Trust Account of _____% of all monthly rental revenue, or such other amount as Owner may direct in writing, to cover operating costs and expenses of the Property. Broker shall not be required to perform any act or duty hereunder -4- involving the expenditure of funds unless there are sufficient funds in the Operating Trust Account for such expenditure. Broker may advance sums as necessary, but is not obligated to do so. In such event, Owner agrees to reimburse Broker for such advances promptly upon receipt of notice thereof. Broker will immediately notify Owner if the reserve in the Operating Trust Account drops below ____% of total monthly rental revenue for the Property. (c) Owner has paid into and will maintain at all times in the Operating Trust Account, the sum of $_____________________ as a deposit to cover emergency repairs, but emergency expenditures shall not be limited to that amount if Broker, in its discretion, determines that it is necessary to spend more for emergency repairs. In such event, Owner shall promptly reimburse Broker for the cost of any emergency repairs which Broker pays for or for which Broker is obligated, but Owner acknowledges that Broker is under no duty to make expenditures in excess of the amount of the deposit. (d) In the event any deposit check from Owner is not honored, for any reason, by the bank upon which it is drawn, Owner shall deliver good funds to Broker within three (3) days of the bank’s notice of dishonor to Broker. In the event Owner does not timely deliver good funds, Broker, in its sole discretion, shall have the right to terminate this Agreement upon written notice to Owner. 7. Duties and Responsibilities of Owner. At all times during the term of this Agreement, Owner shall perform and observe the following duties and responsibilities: (a) to provide complete and accurate information to Broker, including disclosure of all known facts that materially affect the value of the Property. Owner acknowledges that Broker will rely on Owner’s representations regarding the Property when dealing with prospective tenants, and Owner will indemnify and save Broker and its officers, directors, Brokers and employees harmless from and against any and all actions, causes of action, suits, claims, costs, expenses, attorney’s fees, liabilities or damages, and from liability to any person, to the extent based on Owner’s misstatement, negligence, action, inaction, or failure to perform the obligations of this Agreement or any lease or agreement with a vendor, or the existence of undisclosed material facts about the Property; (b) to approve any capital improvements; (c) to inform Broker before conveying the Property; (d) in the event the operating expenses shall be in excess of the funds collected by Broker, to promptly pay any shortfall required upon demand from Broker; (e) upon termination of this Agreement, to assume obligations of all contracts that Broker entered into on Owner’s behalf. 8. Condition of Property. Owner certifies that, unless provided otherwise herein, all systems and furnished appliances are in good working condition. Owner certifies that the Property is in good and habitable condition as of the date hereof. Upon executi
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