PROPERTY MANAGEMENT AGREEMENT

(State of Georgia – Professionally Drafted Template)

[// GUIDANCE: This template is designed for use by Georgia-licensed real-estate professionals. Customize all bracketed items, attach applicable exhibits, and confirm consistency with the most current Georgia Real Estate Commission (“GREC”) rules prior to execution.]

TABLE OF CONTENTS

I. Document Header
II. Definitions
III. Operative Provisions
IV. Representations & Warranties
V. Covenants & Restrictions
VI. Defaults & Remedies
VII. Risk Allocation
VIII. Dispute Resolution
IX. General Provisions
X. Execution Block

I. DOCUMENT HEADER

1.1 Parties

This Property Management Agreement (“Agreement”) is entered into as of [Effective Date] (“Effective Date”) by and between:

a. [Owner Legal Name], a [State] [entity type], having its principal place of business at [Address] (“Owner”); and
b. [Manager Legal Name], a Georgia-licensed real estate [broker / brokerage firm], License No. [Georgia License #], having its principal place of business at [Address] (“Manager”).

1.2 Recitals

A. Owner is the fee simple owner of the real property commonly known as [Property Address and Legal Description] and desires to engage Manager to manage the Property.
B. Manager is duly licensed under O.C.G.A. § 43-40 et seq. and the rules of the Georgia Real Estate Commission (“GREC”) and is qualified to render property-management services.
C. In consideration of the covenants herein, the parties agree as follows.

II. DEFINITIONS

For purposes of this Agreement, capitalized terms shall have the meanings set forth below. Defined terms appear alphabetically for ease of reference.

“Applicable Law” – All federal, state, and local statutes, ordinances, regulations, rules, and orders governing the Property or the services contemplated herein, including without limitation O.C.G.A. § 43-40 and all promulgated GREC regulations.
“Gross Rent” – All revenue actually collected by Manager from occupancy of the Property, including base rent, late fees, pet fees, parking fees, and any other tenant charges, but excluding Security Deposits.
“Management Fee” – The percentage of Gross Rent or flat fee specified in Section 3.6.
“Operating Account” – The segregated trust account established by Manager pursuant to Section 3.9.
“Security Deposit” – Any refundable deposit collected from a tenant pursuant to a Lease.
[Add additional definitions as needed.]

III. OPERATIVE PROVISIONS

3.1 Appointment & Acceptance

Owner hereby appoints Manager as its exclusive agent to manage, operate, lease, and maintain the Property, and Manager hereby accepts such appointment, subject to the terms herein.

3.2 Term; Renewal

(a) Initial Term: [One (1) year] commencing on the Effective Date.
(b) Automatic Renewal: Thereafter, this Agreement shall renew for successive [one-year] periods unless either party delivers written non-renewal notice at least [30] days prior to the expiration of the then-current term.

3.3 Scope of Services

Manager shall, in a commercially reasonable manner and in compliance with Applicable Law:
a. Market and lease units, including tenant screening, execution of leases (“Leases”), and renewals.
b. Collect rent and other charges; deliver statutory notices; pursue evictions.
c. Oversee maintenance, repairs, capital improvements, and vendor selection.
d. Maintain books, records, and accounting in accordance with GA generally accepted accounting principles and GREC requirements.
e. Provide monthly and annual financial reports to Owner (see Section 5.2).
f. Obtain and maintain customary operating permits and licenses.
g. Perform all other services reasonably necessary for proper management (“Management Services”).

3.4 Performance Standards & Deadlines

Manager shall perform Management Services:
a. With the standard of care customarily exercised by professional Georgia property managers; and
b. In accordance with the operating budget approved under Section 3.5.

3.5 Operating Budget

(a) Preparation: Manager shall submit a proposed annual operating budget no later than [November 1] of each calendar year.
(b) Deemed Approval: If Owner fails to approve or object in writing within [15] days, the proposed budget shall be deemed approved.

3.6 Compensation

a. Management Fee: [___ %] of Gross Rent –or– a flat fee of [$___] per month.
b. Leasing Fee: [___ %] of the first full month’s rent for each new Lease.
c. Maintenance Oversight Fee: [___ %] markup on third-party invoices exceeding [$___].
d. Reimbursement of Expenses: Out-of-pocket costs reasonably incurred by Manager on Owner’s behalf.

3.7 Owner Advances

If Operating Account funds are insufficient to meet Property expenses, Manager may request Owner to remit additional funds within [5] business days of written demand.

3.8 Conditions Precedent

Manager’s obligations are conditioned upon:
a. Receipt of all necessary Property records, keys, security codes, and prior contracts.
b. Owner’s maintenance of Property insurance per Section 7.3.

3.9 Trust / Operating Accounts

a. Establishment: Manager shall maintain a trust account titled “[Owner Name] – [Property] Trust Account” at an FDIC-insured institution located in Georgia.
b. Deposit Timing: All tenant funds shall be deposited no later than the next banking day following receipt, in accordance with GREC trust-account rules.
c. Segregation: Operating Account funds shall not be commingled with Manager’s or any other client’s funds.

3.10 Security Deposits

Manager shall collect, hold, and disburse Security Deposits strictly in compliance with O.C.G.A. § 44-7-30 et seq. and applicable GA landlord-tenant law, maintaining a separate designated escrow sub-account if required.

IV. REPRESENTATIONS & WARRANTIES

4.1 Mutual Representations

Each party represents that:
a. It is duly organized, validly existing, and in good standing under the laws of its formation jurisdiction;
b. Execution and performance of this Agreement are within its authority and do not violate any other agreement; and
c. This Agreement constitutes a valid, binding obligation enforceable against it.

4.2 Manager Representations

Manager further represents and warrants that:
a. Licensing: It holds an active Georgia real estate broker’s license (License No. [__]) and will maintain such license throughout the Term.
b. Insurance: It carries errors & omissions insurance with minimum limits of [$1,000,000] per claim.
c. Personnel: All agents engaged in leasing activities are properly licensed or exempt under GA law.

4.3 Survival

All representations and warranties survive termination for a period of [12] months.

V. COVENANTS & RESTRICTIONS

5.1 Affirmative Covenants of Manager

a. Compliance: Manager shall comply with Applicable Law and all covenants, conditions, and restrictions affecting the Property.
b. Records: Maintain complete records for no less than [3] years and make them available for Owner inspection on [48] hours’ notice.
c. Insurance Claims: Promptly file and manage all insurance claims on Owner’s behalf.

5.2 Reporting

Manager shall deliver to Owner:
a. Monthly statement of income and expenses within [15] days after month-end;
b. Annual report, including IRS Form 1099, within [45] days after calendar year-end.

5.3 Negative Covenants

Manager shall not, without Owner’s prior written consent:
a. Expend more than [$___] on any single non-emergency repair;
b. Enter into any contract exceeding [one (1) year];
c. List Property for sale or otherwise encumber title.

5.4 Owner Covenants

Owner shall:
a. Maintain Property in habitable condition and fund required repairs;
b. Carry insurance per Section 7.3;
c. Indemnify Manager as set forth in Section 7.1(b) (limited to Third-Party Claims).

VI. DEFAULTS & REMEDIES

6.1 Events of Default

The following constitute Events of Default:
a. Material breach of this Agreement not cured within [15] days after written notice;
b. Insolvency, bankruptcy, or receivership of either party;
c. Manager’s license suspension or revocation.

6.2 Cure Periods

If an Event of Default is not cured within the applicable period, the non-defaulting party may:
a. Terminate this Agreement immediately;
b. Exercise any remedy at law or in equity, including injunctive relief (Section 8.4); and
c. Recover actual damages and attorneys’ fees per Section 6.3.

6.3 Attorneys’ Fees & Costs

The prevailing party in any dispute arising under this Agreement is entitled to recover reasonable attorneys’ fees and costs.

VII. RISK ALLOCATION

7.1 Indemnification

a. Manager Indemnity: Manager shall defend, indemnify, and hold harmless Owner, its affiliates, and their respective directors, officers, and employees from any third-party claim, damage, loss, or expense (including reasonable attorneys’ fees) arising out of (i) Manager’s negligence, willful misconduct, or breach of this Agreement; or (ii) violation of Applicable Law by Manager.
b. Exclusions: Indemnity shall not extend to matters arising from (i) Owner’s breach of this Agreement; (ii) Owner’s violation of law; or (iii) conditions pre-existing Manager’s engagement of which Manager had no knowledge.

7.2 Limitation of Liability

Except for (i) indemnification obligations; (ii) fraud; or (iii) willful misconduct, Manager’s aggregate liability under this Agreement shall not exceed the total Management Fees actually paid to Manager during the [twelve (12)] months immediately preceding the event giving rise to liability.

7.3 Insurance Requirements

Owner shall maintain, at its expense, (i) commercial general liability insurance with limits not less than [$1,000,000] per occurrence; (ii) property insurance on a replacement-cost basis; and (iii) such additional coverages as reasonably required by Manager or lenders. Manager shall be named as an additional insured on liability policies.

7.4 Force Majeure

Neither party is liable for failure to perform caused by events beyond its reasonable control (e.g., natural disasters, acts of terrorism, governmental orders). Performance deadlines extend for the duration of the force-majeure event.

VIII. DISPUTE RESOLUTION

8.1 Governing Law

This Agreement is governed by, and construed in accordance with, the laws of the State of Georgia, without regard to conflict-of-laws principles.

8.2 Forum Selection

Subject to Section 8.3, the parties submit to the exclusive jurisdiction of the state courts located in [County], Georgia, and waive any objection based on forum non conveniens.

8.3 Optional Arbitration

[OPTION 1 – SELECT IF DESIRED]
Any dispute arising from or relating to this Agreement shall be resolved by binding arbitration administered by [AAA/JAMS] in accordance with its commercial rules. The arbitration shall take place in [City], Georgia, before a single arbitrator. Judgment on the award may be entered in any court of competent jurisdiction.

[// GUIDANCE: Delete Section 8.3 in its entirety if arbitration is not elected.]

8.4 Injunctive Relief

Nothing in this Agreement shall impair a party’s right to seek temporary, preliminary, or permanent injunctive relief in a court of competent jurisdiction to prevent irreparable harm.

8.5 Jury Trial Waiver

[OPTIONAL] THE PARTIES HEREBY WAIVE THEIR CONSTITUTIONAL AND STATUTORY RIGHTS TO A TRIAL BY JURY IN ANY ACTION ARISING UNDER THIS AGREEMENT.

IX. GENERAL PROVISIONS

9.1 Amendments & Waivers

No amendment or waiver is effective unless in writing and signed by both parties. No failure or delay in exercising any right operates as a waiver.

9.2 Assignment & Delegation

Neither party may assign this Agreement without the prior written consent of the other, except that Owner may assign to a successor-in-interest to the Property upon [30] days’ notice.

9.3 Successors & Assigns

This Agreement binds and benefits the parties and their respective permitted successors and assigns.

9.4 Severability

If any provision is held unenforceable, it shall be modified to the minimum extent necessary to make it enforceable, and the remaining provisions shall remain in full force.

9.5 Entire Agreement

This Agreement, together with all exhibits and schedules, constitutes the entire agreement between the parties and supersedes all prior understandings.

9.6 Counterparts; Electronic Signatures

This Agreement may be executed in counterparts, each of which is deemed an original, and all of which constitute one document. Signatures delivered by facsimile, PDF, or electronic signature service (e.g., DocuSign) are binding.

9.7 Notices

All notices shall be in writing and delivered (i) by hand with signed receipt; (ii) by certified U.S. mail, return receipt requested; or (iii) by nationally recognized overnight courier, to the addresses set forth below (or as later changed by written notice). Notices are effective on receipt or refusal.

X. EXECUTION BLOCK

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

[Optional Notary Block – Use if notarization is desired or required]

[// GUIDANCE:
1. Attach Exhibit A – Property Description; Exhibit B – Schedule of Fees; Exhibit C – Form of Monthly Statement.
2. Verify compliance with local landlord-tenant ordinances (e.g., City of Atlanta ordinances, if applicable).
3. Confirm insurance limits align with lender requirements.
4. Update Section 3.9 for any GREC trust-account changes prior to execution.
]