PROPERTY MANAGEMENT AGREEMENT

(Florida Jurisdiction – Comprehensive Template)

[// GUIDANCE: This template is drafted for use in Florida and is structured to incorporate Florida-specific licensing, trust-account, and disclosure obligations, together with the risk-allocation positions specified in the metadata. Bracketed text must be customized before execution.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Appointment & Scope of Authority
4. Term; Renewal; Termination
5. Manager’s Duties
6. Owner’s Duties
7. Compensation & Expenses
8. Trust/Escrow Account Requirements
9. Leasing & Tenant Relations
10. Insurance & Risk Management
11. Representations & Warranties
12. Covenants
13. Defaults & Remedies
14. Indemnification; Limitation of Liability
15. Dispute Resolution
16. General Provisions
17. Execution Block

1. DOCUMENT HEADER

1.1 Agreement

This Property Management Agreement (this “Agreement”) is entered into and made effective as of [EFFECTIVE DATE] (the “Effective Date”), by and between:

(a) [OWNER LEGAL NAME], a [STATE OF ORGANIZATION] [ENTITY TYPE] with its principal place of business at [ADDRESS] (“Owner”); and

(b) [MANAGER LEGAL NAME], a [STATE OF ORGANIZATION] [ENTITY TYPE] holding an active Florida real estate [broker/sales associate] license no. [LICENSE #] issued by the Florida Department of Business and Professional Regulation (“Manager”).

1.2 Recitals

A. Owner is the fee simple owner of, or otherwise possesses the necessary authority to lease and manage, the real property and all improvements located at [PROPERTY ADDRESS OR DESCRIPTION] (the “Property”).
B. Owner desires to retain Manager to perform certain property management services concerning the Property, and Manager desires to accept such engagement, all upon the terms and subject to the conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants herein and other good and valuable consideration (the receipt and sufficiency of which are acknowledged), the Parties agree as follows:

2. DEFINITIONS

For purposes of this Agreement, capitalized terms shall have the meanings set forth below. Any capitalized term used but not defined herein shall have the meaning ascribed to it in the section where first used.

“Affiliate” – Any entity directly or indirectly controlling, controlled by, or under common control with a Party.
“Agreement Year” – Each consecutive twelve-month period commencing on the Effective Date or an anniversary thereof.
“Applicable Law” – All present or future federal, state, county, and local statutes, ordinances, rules, regulations, orders, and judicial or administrative decisions applicable to the Property, the Parties, or the performance of this Agreement, including without limitation the Florida Real Estate License Law, Chapter 475, Florida Statutes, the Florida Residential Landlord and Tenant Act (Part II, Chapter 83, Florida Statutes), fair-housing laws, and any federal lead-based paint or radon disclosure regulations.
“Gross Collected Rents” – All rents and other sums actually received by Manager on behalf of Owner from tenants of the Property, excluding security deposits unless and until applied.
“Indemnified Claim” – Any claim, demand, cause of action, loss, expense, or liability described in Section 14.
“Management Fee” – The fee payable to Manager pursuant to Section 7.1.
“Parties” – Collectively, Owner and Manager; “Party” means either of them.
“Services” – The property management services described in Section 5, together with any Additional Services authorized under Section 5.7.
“Trust Account” – The segregated escrow or trust account(s) established and maintained by Manager pursuant to Section 8.

[// GUIDANCE: Add or delete defined terms to fit the transaction.]

3. APPOINTMENT & SCOPE OF AUTHORITY

3.1 Exclusive Appointment. Owner hereby engages Manager, and Manager hereby accepts such engagement, as Owner’s exclusive agent for the management and operation of the Property, subject to the limitations expressly set forth herein.

3.2 Authority Granted. Manager shall have authority, in the name and on behalf of Owner, to:
a. Lease or license space in the Property on terms consistent with any written leasing guidelines provided by Owner;
b. Execute, renew, extend, or cancel leases and rental agreements;
c. Collect rents and other sums, issue receipts, and institute legal proceedings for collection or eviction (subject to Section 9.4);
d. Engage contractors and vendors for ordinary maintenance and repairs not exceeding the dollar threshold set forth in Section 5.4; and
e. Perform all other acts reasonably necessary to fulfill Manager’s duties under this Agreement.

3.3 Limitations on Authority. Manager shall not, without Owner’s prior written consent, (i) make any single expenditure in excess of [USD $_], except for emergency repairs under Section 5.5; (ii) alter or improve the Property; (iii) enter into any lease exceeding [_] months; or (iv) confess judgment or settle litigation.

4. TERM; RENEWAL; TERMINATION

4.1 Initial Term. The term of this Agreement shall commence on the Effective Date and continue for [__] year(s) (the “Initial Term”) unless sooner terminated in accordance with this Section 4 or Section 13.

4.2 Automatic Renewal. Upon expiration of the Initial Term, this Agreement shall automatically renew for successive one-year periods (each a “Renewal Term”) unless either Party delivers written notice of non-renewal at least 30 days before the expiration of the then-current term.

4.3 Termination for Convenience. Either Party may terminate this Agreement without cause upon 30 days’ prior written notice.

4.4 Termination for Cause. Either Party may terminate immediately upon written notice if the other Party commits a material breach and fails to cure within 10 days after receipt of notice describing the breach in reasonable detail.

4.5 Effect of Termination. Upon termination:
a. Manager shall promptly deliver to Owner (i) all rents and funds of Owner, (ii) tenant files and leasing records, (iii) all keys and security codes, and (iv) a final accounting;
b. Owner shall pay Manager all accrued and unpaid Management Fees and reimbursable expenses through the termination date; and
c. Sections 11, 12, 14, 15, and any other provisions that by their nature should survive, shall survive termination.

5. MANAGER’S DUTIES

5.1 General Standard of Performance. Manager shall perform the Services in a commercially reasonable manner consistent with industry standards, applicable professional licensing requirements, and Applicable Law.

5.2 Leasing & Marketing. Manager shall (a) advertise available units; (b) screen prospective tenants in compliance with fair-housing laws; and (c) prepare and execute leases using forms approved by Owner.

5.3 Rent Collection & Accounting. Manager shall diligently collect rents and other charges, issue receipts, and maintain complete and accurate books and records available for Owner’s inspection upon two Business Days’ notice.

5.4 Maintenance & Repairs. Manager shall arrange for maintenance and repairs necessary to maintain the Property in a habitable condition and preserve its value, provided that, except in emergencies, Manager shall not incur any single expense exceeding [USD $____] without Owner’s prior written approval.

5.5 Emergency Repairs. In case of an emergency threatening life, safety, or material property damage, Manager may take immediate action without prior approval, subject to prompt notice to Owner.

5.6 Legal Compliance & Disclosures. Manager shall:
a. Maintain its Florida real estate broker license in good standing;
b. Comply with all trust-account and escrow recordkeeping rules promulgated by the Florida Real Estate Commission;
c. Provide tenants with all disclosures required under Applicable Law, including but not limited to radon gas, lead-based paint, security-deposit, and landlord-identity disclosures; and
d. File or assist in filing any applicable information returns or certificates (e.g., Form 1099-MISC).

5.7 Additional Services. Owner may request services outside the scope of Section 5 (“Additional Services”). If Manager agrees, the Parties shall execute a written addendum specifying the scope and compensation.

6. OWNER’S DUTIES

6.1 Funding. Owner shall maintain in the Trust Account (or other account acceptable to Manager) a minimum operating reserve of [USD $____] and promptly replenish same upon Manager’s notice.

6.2 Information & Documents. Owner shall provide Manager with all leases, warranties, permits, and other documents or information relating to the Property reasonably requested by Manager.

6.3 Insurance. Owner shall obtain and maintain at its expense the insurance coverages required under Section 10.1.

6.4 Indemnity Support. Owner shall provide such factual information and cooperation as is reasonably necessary to enable Manager to defend any Indemnified Claim for which Owner is responsible hereunder.

7. COMPENSATION & EXPENSES

7.1 Management Fee. Owner shall pay Manager a Management Fee equal to []% of Gross Collected Rents, payable monthly in arrears on or before the [] day of each month and deductible by Manager from funds held in the Trust Account.

7.2 Leasing Commission. For each new lease or renewal procured by Manager, Owner shall pay a commission of [__]% of the annualized base rent (or a flat fee of [USD $____]), payable upon execution of the lease.

7.3 Reimbursable Expenses. Owner shall reimburse Manager for (a) reasonable, out-of-pocket expenses incurred in performing the Services, and (b) costs of third-party vendors, contractors, or legal counsel as approved in accordance with Section 5.4.

7.4 Late Payment. Amounts not paid when due shall bear interest at the lesser of [__]% per annum or the maximum rate permitted by Applicable Law.

7.5 Audit Rights. Owner may, at its expense and upon 10 Business Days’ notice, audit Manager’s books and records pertaining to the Property no more than once per Agreement Year.

8. TRUST/ESCROW ACCOUNT REQUIREMENTS

8.1 Establishment. Manager shall maintain one or more interest-bearing Florida bank accounts titled “[MANAGER NAME], as escrow agent for [OWNER NAME]” segregated from Manager’s operating funds (collectively, the “Trust Account”).

8.2 Deposits & Timing. Manager shall deposit all receipts collected on Owner’s behalf in the Trust Account within three (3) Business Days after receipt or as otherwise required by Applicable Law.

8.3 Withdrawals. Manager may withdraw funds solely for (a) remittance to Owner, (b) payment of Property expenses, (c) disbursement of Management Fees and commissions, and (d) refunds of tenant security deposits in accordance with Applicable Law and any written instructions from Owner.

8.4 Recordkeeping. Manager shall maintain complete escrow ledgers and monthly reconciliations in compliance with Florida Real Estate Commission rules and retain such records for not less than five (5) years after termination.

8.5 Audit & Inspection. Owner (or its designee) may inspect Trust Account records upon reasonable notice during normal business hours.

9. LEASING & TENANT RELATIONS

9.1 Lease Form. All leases shall be in writing on forms approved by Owner and shall identify Owner (or Manager as Owner’s agent) in compliance with Florida Statutes Chapter 83.

9.2 Security Deposits. Manager shall hold and account for tenant security deposits in accordance with Applicable Law, including the timing and content of any required notices.

9.3 Tenant Complaints & Service Requests. Manager shall respond promptly to all tenant inquiries, complaints, and maintenance requests.

9.4 Legal Proceedings. Manager is authorized to institute, settle, or defend actions for rent collection or eviction provided Manager uses counsel approved by Owner. Owner shall be responsible for all associated legal fees and court costs.

10. INSURANCE & RISK MANAGEMENT

10.1 Owner Insurance. Owner shall maintain at all times (a) property insurance covering the full replacement cost of the Property, (b) commercial general liability insurance with limits of not less than [USD $____] per occurrence, and (c) any other insurance reasonably required by Manager or any lender. The policies shall name Manager and its Affiliates as additional insureds on a primary, non-contributory basis and include waivers of subrogation.

10.2 Manager Insurance. Manager shall maintain (a) errors and omissions (professional liability) insurance with limits of not less than [USD $____] per claim, and (b) workers’ compensation insurance as required by law.

10.3 Claims Handling. Manager shall promptly notify Owner of any casualty or liability claim involving the Property and shall coordinate the filing of such claims in accordance with insurer requirements.

11. REPRESENTATIONS & WARRANTIES

11.1 Mutual Representations. Each Party represents and warrants that:
a. It is duly organized, validly existing, and in good standing under the laws of its jurisdiction of formation;
b. It has full power and authority to enter into and perform this Agreement; and
c. This Agreement constitutes a legal, valid, and binding obligation enforceable against it in accordance with its terms.

11.2 Manager’s Additional Representations. Manager further represents and warrants that:
a. It holds and will maintain throughout the Term an active Florida real estate broker license authorizing it to perform the Services;
b. No disciplinary action is pending against its license; and
c. It has, and will maintain, sufficient staff, resources, and expertise to perform the Services.

11.3 Survival. The representations and warranties in this Section shall survive termination for a period of [12] months.

12. COVENANTS

12.1 Compliance with Law. Each Party shall comply with Applicable Law in performing its obligations.

12.2 Confidentiality. Each Party shall keep confidential and not disclose any proprietary or non-public information of the other Party except as required to perform this Agreement or as compelled by law.

12.3 Non-Solicitation. During the Term and for twelve (12) months thereafter, neither Party shall knowingly solicit for employment any employee of the other Party who had material involvement with the Property, without the other Party’s prior written consent.

12.4 Further Assurances. Each Party shall execute and deliver such additional documents and take such further actions as reasonably requested to effectuate the intent of this Agreement.

13. DEFAULTS & REMEDIES

13.1 Events of Default. The following constitute an “Event of Default”:
a. Failure to pay any amount when due and such failure continues for five (5) Business Days after written notice;
b. Material breach of any covenant, representation, or warranty, which breach is not cured within ten (10) days after written notice (or such longer period as may be reasonably necessary so long as diligent efforts to cure are commenced within said ten-day period);
c. Bankruptcy, insolvency, or assignment for the benefit of creditors; or
d. Revocation, suspension, or lapse of Manager’s real estate broker license.

13.2 Remedies. Upon an Event of Default, the non-defaulting Party may:
a. Terminate this Agreement immediately upon written notice;
b. Seek specific performance, injunctive relief, or other equitable remedies;
c. Recover actual damages (subject to the limitation in Section 14.2); and
d. Recover its reasonable attorney fees and costs, including those incurred on appeal and in bankruptcy proceedings.

14. INDEMNIFICATION; LIMITATION OF LIABILITY

14.1 Manager Indemnifies Owner. Manager shall indemnify, defend, and hold harmless Owner and its Affiliates, and their respective officers, directors, shareholders, members, managers, employees, and agents, from and against any Indemnified Claim arising out of (a) Manager’s gross negligence, willful misconduct, or material breach of this Agreement, or (b) Manager’s violation of Applicable Law.

14.2 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE TOTAL LIABILITY OF MANAGER AND ITS AFFILIATES UNDER THIS AGREEMENT (WHETHER IN CONTRACT, TORT, OR OTHERWISE) SHALL NOT EXCEED, IN THE AGGREGATE, AN AMOUNT EQUAL TO THE MANAGEMENT FEES ACTUALLY PAID TO MANAGER DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

14.3 Exclusion of Consequential Damages. IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXEMPLARY, OR PUNITIVE DAMAGES, INCLUDING LOSS OF PROFITS, REGARDLESS OF THE LEGAL THEORY ADVANCED.

14.4 Conditions Precedent. As a condition to indemnification, the indemnified Party must (a) promptly notify the indemnifying Party of the Indemnified Claim, (b) permit the indemnifying Party to control the defense and settlement, and (c) cooperate reasonably in such defense.

15. DISPUTE RESOLUTION

15.1 Governing Law. This Agreement and any dispute arising hereunder shall be governed by, and construed in accordance with, the laws of the State of Florida, without regard to its conflict-of-laws provisions.

15.2 Forum Selection. Subject to Section 15.3, the state courts located in [COUNTY], Florida shall have exclusive jurisdiction over any action arising out of or relating to this Agreement, and the Parties hereby submit to and waive any objection to such jurisdiction and venue.

15.3 Arbitration (Optional). [SELECT ONE: ☑ Yes / ☐ No] If “Yes,” any dispute not resolved within 30 days after written notice of dispute shall be finally settled by binding arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. Judgment on the award may be entered in any court of competent jurisdiction.

15.4 Jury Trial Waiver (Optional). [SELECT ONE: ☑ Yes / ☐ No] IF “YES,” EACH PARTY HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT.

15.5 Injunctive Relief. Notwithstanding Section 15.3, either Party may seek temporary or permanent injunctive relief or specific performance in any court of competent jurisdiction to prevent irreparable harm.

15.6 Attorney Fees. The prevailing Party in any dispute arising hereunder shall be entitled to recover its reasonable attorney fees and costs.

16. GENERAL PROVISIONS

16.1 Notices. All notices shall be in writing and deemed given when (a) delivered by hand, (b) sent by nationally recognized overnight courier, or (c) sent by certified mail, return receipt requested, in each case to the addresses set forth below (or as updated by proper notice). Email is acceptable for routine operational communications but shall not constitute notice under this Section.

16.2 Amendment; Waiver. No amendment or waiver of any provision shall be effective unless in writing and signed by both Parties. No waiver shall constitute a waiver of any other or subsequent breach.

16.3 Assignment. Neither Party may assign or delegate its rights or obligations without the prior written consent of the other Party, except that Owner may assign this Agreement to a purchaser of the Property upon written notice to Manager. Any prohibited assignment is void.

16.4 Successors & Assigns. This Agreement shall bind and inure to the benefit of the Parties and their respective permitted successors and assigns.

16.5 Severability. If any provision is held invalid or unenforceable, the remaining provisions shall remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to render it enforceable.

16.6 Entire Agreement. This Agreement (including any exhibits, schedules, or addenda) constitutes the entire agreement between the Parties regarding its subject matter and supersedes all prior agreements or understandings.

16.7 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts (including by electronic signature or PDF), each of which shall be deemed an original, and all of which together constitute one instrument. Electronic signatures shall be deemed to have the same legal effect as original signatures under the federal E-SIGN Act and Florida’s Uniform Electronic Transaction Act.

16.8 Interpretation. Headings are for reference only and shall not affect interpretation. The terms “including,” “include,” and “includes” are deemed to be followed by “without limitation.”

16.9 Time of the Essence. Time is of the essence with respect to all deadlines and performance obligations herein.

17. EXECUTION BLOCK

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

OWNER:

[OWNER LEGAL NAME]
By: _____
Name: ____
Title: ____
Date: ______

MANAGER:

[MANAGER LEGAL NAME]
By: _____
Name: ____
Title: ____
Date: ______

[// GUIDANCE: Florida law does not generally require notarization or witnesses for a property management agreement unless recordation is intended or the document grants broad real-property interests. Add acknowledgment blocks below if desired.]

(End of Agreement)