PROPERTY MANAGEMENT AGREEMENT

(State of Nevada)

[// GUIDANCE: Replace all bracketed placeholders prior to execution. Capitalized terms used before their definition are for convenience only and will be replaced once the Definitions Section is finalized.]

DOCUMENT HEADER

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

• [OWNER LEGAL NAME], a [STATE OF FORMATION] [ENTITY TYPE], whose address is [OWNER ADDRESS] (“Owner”); and
• [MANAGER LEGAL NAME], a [STATE OF FORMATION] [ENTITY TYPE], Nevada Real Estate Division (“NRED”) broker license no. [_____] and property-management permit no. [_____], whose address is [MANAGER ADDRESS] (“Manager”).

Owner and Manager each may be referred to as a “Party” and collectively as the “Parties.”

RECITALS

A. Owner owns that certain real property located at [PROPERTY ADDRESS / LEGAL DESCRIPTION] and more particularly described in Exhibit A (the “Property”).
B. Manager is duly licensed, permitted, and qualified under Nevada Revised Statutes Chapter 645 to engage in property management and desires to manage the Property on Owner’s behalf, subject to the terms and conditions of this Agreement.
C. Owner desires to engage Manager, and Manager desires to accept such engagement, for the consideration and subject to the covenants herein.

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

TABLE OF CONTENTS

I. Definitions
II. Appointment; Term; Exclusivity
III. Manager Duties and Authority
IV. Owner Duties and Rights
V. Compensation and Reimbursements
VI. Trust Accounts; Records; Reporting
VII. Insurance
VIII. Representations and Warranties
IX. Covenants
X. Default; Termination; Remedies
XI. Risk Allocation
XII. Dispute Resolution
XIII. General Provisions
XIV. Execution

I. DEFINITIONS

The following terms shall have the meanings set forth below. All section and exhibit references are to this Agreement unless otherwise noted.

“Affiliate” means, with respect to any Person, any other Person controlling, controlled by, or under common control with such Person.
“Applicable Law” means all federal, state, and local statutes, regulations, ordinances, and codes—including, without limitation, the Fair Housing Act, NRS 645.605 et seq., and any implementing regulations—applicable to the Parties or the Property.
“Effective Date” has the meaning stated in the Document Header.
“Emergency” means a condition that (i) materially threatens life, safety, or health; (ii) materially threatens damage to or destruction of the Property; or (iii) is required by Applicable Law to be remedied immediately.
“Gross Collected Rents” means all amounts actually received by Manager from tenants of the Property, including rent, late fees, and pet fees, but excluding security deposits (until applied) and application fees.
“Management Fee” has the meaning given in Section V.A.
“Operating Account” has the meaning given in Section VI.A.
“Person” means any natural person, corporation, partnership, limited liability company, trust, or other entity.
“Property” has the meaning stated in Recital A.

[// GUIDANCE: Add or delete terms to suit the scope of management services.]

II. APPOINTMENT; TERM; EXCLUSIVITY

2.1 Appointment. Owner hereby appoints Manager as the sole and exclusive manager and leasing agent for the Property, and Manager accepts such appointment, subject to the limitations in this Agreement and Applicable Law.

2.2 Term. The term of this Agreement (the “Term”) shall commence on the Effective Date and continue for [ONE (1) YEAR], automatically renewing for successive [ONE-YEAR] periods unless either Party delivers written notice of non-renewal at least [30] days prior to the expiration of the then-current Term.

2.3 Early Termination for Convenience. Either Party may terminate this Agreement without cause upon [30 / 60] days’ prior written notice; provided, however, Owner shall pay Manager (i) all accrued but unpaid compensation through the effective date of termination and (ii) a termination fee equal to [ONE (1) MONTH] of the average monthly Management Fee.

2.4 Exclusivity. During the Term, Owner shall not engage any other person to manage or lease the Property without Manager’s prior written consent.

III. MANAGER DUTIES AND AUTHORITY

3.1 Scope of Services. Manager shall use commercially reasonable efforts to:
(a) Market, advertise, show, and lease the Property;
(b) Screen prospective tenants in compliance with fair-housing and consumer-reporting laws;
(c) Negotiate, execute, renew, and terminate residential leases on behalf of Owner in the form attached as Exhibit B, with such modifications as Manager deems necessary and customary;
(d) Collect rents, fees, and other charges when due;
(e) Serve notices, institute eviction or other legal proceedings, and engage counsel when necessary (at Owner’s expense) to enforce tenant obligations;
(f) Conduct routine, periodic, and move-in/move-out inspections;
(g) Obtain and supervise vendors for maintenance, repairs, capital improvements, and housekeeping;
(h) Pay, from funds of Owner held by Manager, all operating expenses of the Property that Manager determines are due and payable;
(i) Provide Owner with monthly operating statements and an annual income and expense statement, together with IRS Form 1099 reporting;
(j) Maintain the Operating Account(s) in accordance with Section VI; and
(k) Perform such other services as are reasonably necessary to fulfill Manager’s obligations under this Agreement or as mutually agreed in writing.

[// GUIDANCE: If short-term rentals are contemplated, add AirBnB/VRBO-specific compliance language.]

3.2 Limitations on Authority. Manager shall not, without Owner’s prior written consent:
(a) Expend or commit Owner’s funds for any single item exceeding [$__], except in an Emergency;
(b) Alter, improve, or remodel the Property if the cost exceeds [$__];
(c) Convey, mortgage, or otherwise encumber the Property;
(d) Enter into any lease longer than [ONE (1) YEAR]; or
(e) Engage any Affiliate of Manager to provide goods or services to the Property except as disclosed in writing to Owner.

3.3 Standard of Care. Manager shall perform its duties with the degree of care, loyalty, and diligence ordinarily exercised by competent and licensed Nevada property managers.

3.4 Independent Contractor. Manager is an independent contractor and not an employee, partner, joint venturer, or agent of Owner for any purpose other than those expressly set forth herein.

IV. OWNER DUTIES AND RIGHTS

4.1 Funding Obligations. Owner shall promptly advance to Manager all funds reasonably required to operate the Property, including but not limited to repairs, utilities, insurance premiums, taxes, legal expenses, and reserves.

4.2 Information and Access. Owner shall, within five (5) business days of request, provide Manager with all documents, records, permits, and keys necessary for Manager to perform its duties.

4.3 Insurance. Owner shall maintain, at its sole cost, property and liability insurance in amounts customary for similar properties in Nevada, naming Manager and Manager’s agents as additional insureds.

4.4 Legal Compliance. Owner shall comply with all obligations imposed upon property owners under Applicable Law, including habitability standards and disclosure requirements (e.g., lead-based paint for pre-1978 housing).

4.5 Right of Entry. Owner reserves the right to inspect the Property at reasonable times upon forty-eight (48) hours’ prior notice to Manager, provided such entry complies with tenant privacy rights.

V. COMPENSATION AND REIMBURSEMENTS

5.1 Management Fee. As compensation for the services herein, Owner shall pay Manager a management fee equal to [____ %] of Gross Collected Rents each calendar month (the “Management Fee”).

5.2 Leasing Fee. For each new lease procured, Owner shall pay Manager [____ %] of one month’s rent, payable upon tenant’s payment of the first full month’s rent.

5.3 Renewal Fee. For each lease renewal or extension, Owner shall pay Manager [____ %] of one month’s rent.

5.4 Maintenance Coordination Fee. Manager may charge [____ %] (not to exceed [$_____]) of the cost of any single repair or improvement exceeding [$_____], exclusive of routine maintenance.

5.5 Reimbursements. Owner shall reimburse Manager, within ten (10) days of invoice, for all reasonable out-of-pocket costs incurred in performing this Agreement (e.g., court costs, advertising, locksmith services).

5.6 Offset Right. Manager may deduct any unpaid amounts due to Manager from funds of Owner held by Manager.

VI. TRUST ACCOUNTS; RECORDS; REPORTING

6.1 Trust Accounts. In accordance with Nevada Real Estate law, Manager shall deposit all tenant funds, rents, and other monies belonging to Owner into one or more federally insured trust accounts titled “[MANAGER NAME], Trust Account for [OWNER NAME]” (each, an “Operating Account”) at a Nevada-based financial institution. Each deposit shall be made no later than the next banking day after receipt.

6.2 Segregation; Commingling Prohibited. Owner’s funds shall not be commingled with funds of Manager or any other person, except as expressly permitted by Nevada Administrative Code governing nominal interest trust accounts.

6.3 Records. Manager shall maintain complete and accurate books and records for the Property in accordance with generally accepted accounting principles and Nevada Real Estate Division requirements, available for Owner’s inspection during normal business hours upon two (2) business days’ notice.

6.4 Statements and Reports. On or before the [15th] day of each month, Manager shall deliver to Owner: (i) an income and expense statement for the preceding month; (ii) a reconciliation of the Operating Account; (iii) copies of all vendor invoices over [$_____]; and (iv) any other information reasonably requested by Owner.

6.5 Audit Rights. Owner may, at its expense, cause an audit of the Operating Account and related records once per calendar year; Manager shall cooperate fully with such audit.

VII. INSURANCE

7.1 Manager Insurance. Manager shall maintain, at its own expense:
(a) Commercial General Liability insurance with limits not less than [$1,000,000] per occurrence and [$2,000,000] aggregate; and
(b) Errors and Omissions (Professional Liability) insurance with limits not less than [$1,000,000] per claim.

7.2 Evidence of Coverage. Each Party shall furnish certificates of insurance within ten (10) days of request and shall provide thirty (30) days’ prior written notice of cancellation or material modification.

VIII. REPRESENTATIONS AND WARRANTIES

8.1 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;
(c) This Agreement constitutes its legal, valid, and binding obligation, enforceable in accordance with its terms; and
(d) Its execution and performance do not violate any agreement or Applicable Law binding upon it.

8.2 Manager Additional Representations. Manager further represents and warrants that:
(a) Manager holds the Nevada real estate broker license and property-management permit identified in the Document Header, each of which is valid and in good standing;
(b) Manager and all persons acting under Manager’s supervision who perform property-management activities are properly licensed or exempt;
(c) Manager is, and throughout the Term shall remain, in compliance with Applicable Law, including all trust-account handling and disclosure obligations; and
(d) Manager is not a party to any agreement or proceeding that would impair its ability to perform its obligations hereunder.

8.3 Survival. The representations and warranties in this Section VIII shall survive the expiration or termination of this Agreement.

IX. COVENANTS

9.1 Compliance Covenant. Each Party shall comply with all Applicable Law, including, without limitation, fair-housing, landlord-tenant, habitability, building-code, and Nevada trust-account requirements.

9.2 Conflict-of-Interest Disclosure. Manager shall promptly disclose in writing any actual or potential conflict of interest, including any ownership interest in vendors or contractors engaged for the Property.

9.3 Notice of Legal Proceedings. Each Party shall notify the other within three (3) business days after receiving notice of any litigation, claim, governmental investigation, or violation relating to the Property or this Agreement.

9.4 Books and Records Retention. Manager shall retain all records relating to the Property for not less than five (5) years after termination of this Agreement, or such longer period as may be required by Applicable Law.

X. DEFAULT; TERMINATION; REMEDIES

10.1 Events of Default. The occurrence of any of the following constitutes a default (“Event of Default”):
(a) Failure by a Party to pay any sum due under this Agreement within five (5) business days of written notice of non-payment;
(b) Material breach of any covenant or obligation not cured within fifteen (15) days after written notice (or such longer period as is reasonably necessary, provided diligent efforts to cure are commenced within such fifteen-day period);
(c) Filing or commencement of bankruptcy, insolvency, or receivership proceedings by or against a Party that are not dismissed within sixty (60) days; or
(d) Revocation, suspension, or lapse of Manager’s required license or permit.

10.2 Remedies. Upon an Event of Default by the other Party, the non-defaulting Party may:
(a) Terminate this Agreement immediately by written notice;
(b) Seek specific performance, injunctive relief, or any other equitable remedy;
(c) Recover all actual damages, costs, and expenses (including reasonable attorneys’ fees) arising from the default, subject to Section XI.B; and
(d) Exercise any other rights and remedies available at law or in equity.

10.3 Cumulative Remedies. The remedies herein are cumulative and not exclusive.

XI. RISK ALLOCATION

11.1 Indemnification by Manager. To the fullest extent permitted by law, Manager shall indemnify, defend, and hold Owner, its Affiliates, and their respective directors, officers, employees, and agents harmless from and against any and all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) arising out of or relating to:
(a) The negligence, willful misconduct, or breach of this Agreement by Manager or its agents;
(b) Any violation of Applicable Law by Manager or its agents; and
(c) Any bodily injury (including death) or property damage caused by Manager or its agents.

11.2 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY, THE AGGREGATE LIABILITY OF MANAGER TO OWNER FOR ALL CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL NOT EXCEED THE TOTAL MANAGEMENT FEES ACTUALLY EARNED BY MANAGER HEREUNDER DURING THE TWELVE (12) MONTHS IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO THE CLAIM. THE FOREGOING LIMITATION DOES NOT APPLY TO (i) MANAGER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, (ii) FRAUD, OR (iii) MANAGER’S INDEMNITY OBLIGATIONS UNDER SECTION XI.1.

11.3 Waiver of Consequential Damages. Except as expressly provided in Section 11.1, neither Party shall be liable to the other for any indirect, special, incidental, punitive, or consequential damages, including lost profits.

11.4 Force Majeure. Neither Party shall be liable for failure to perform its obligations (other than payment obligations) to the extent caused by events beyond its reasonable control, including acts of God, war, terrorism, pandemics, civil unrest, or governmental action, provided that the affected Party gives written notice within five (5) business days of the event and resumes performance as soon as reasonably practicable.

XII. DISPUTE RESOLUTION

12.1 Governing Law. This Agreement and any dispute arising hereunder shall be governed by the laws of the State of Nevada without regard to its conflict-of-laws principles.

12.2 Forum Selection. Subject to Section 12.3, the Parties irrevocably submit to the exclusive jurisdiction of the state courts located in [COUNTY] County, Nevada, and waive any objection based on inconvenient forum.

12.3 Arbitration. [CHECK ONE]
☐ Arbitration Not Elected. All disputes shall be resolved exclusively in the courts specified in Section 12.2.
☐ Arbitration Elected. Any dispute arising out of or relating to this Agreement shall be finally resolved by binding arbitration administered by [American Arbitration Association / JAMS] under its [Commercial / Real Estate] rules by a single arbitrator seated in [CITY], Nevada. Judgment on the award may be entered in any court of competent jurisdiction. Either Party may seek interim injunctive relief in court to preserve the status quo pending arbitration.

12.4 Jury Trial Waiver. [OPTIONAL—STRIKE IF NOT DESIRED] TO THE EXTENT PERMITTED BY LAW, EACH PARTY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT.

12.5 Injunctive Relief. Notwithstanding any agreement to arbitrate, either Party may seek temporary, preliminary, or permanent injunctive relief in a court of competent jurisdiction to protect its confidential information, trust accounts, or other proprietary rights.

XIII. GENERAL PROVISIONS

13.1 Amendments and Waivers. No amendment or waiver of any provision of this Agreement shall be effective unless in writing and signed by both Parties. A waiver on one occasion shall not constitute a waiver on any subsequent occasion.

13.2 Assignment. Manager shall not assign or delegate its rights or obligations under this Agreement without Owner’s prior written consent, except to an Affiliate that (i) is duly licensed and permitted to conduct property management in Nevada and (ii) assumes all obligations herein in writing. Owner may freely assign this Agreement in connection with a transfer of the Property upon written notice to Manager.

13.3 Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Parties and their respective permitted successors and assigns.

13.4 Severability. If any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall remain in full force, and the affected provision shall be interpreted or modified to the minimum extent necessary to render it enforceable.

13.5 Entire Agreement. This Agreement, together with all exhibits and schedules, constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior or contemporaneous understandings or agreements, whether written or oral.

13.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one instrument. Signatures delivered by facsimile, portable document format (PDF), or other electronic means shall be deemed original signatures and fully enforceable.

13.7 Notices. All notices under this Agreement shall be in writing and deemed given (i) when delivered personally, (ii) one (1) business day after deposit with a nationally recognized overnight courier, or (iii) three (3) business days after deposit in certified U.S. mail, return receipt requested, postage prepaid, addressed to the Parties at their addresses set forth in the Document Header or such other address as a Party may designate by notice.

13.8 No Third-Party Beneficiaries. Except as expressly provided herein, nothing in this Agreement is intended or shall be construed to create any rights in or for any person other than the Parties.

XIV. EXECUTION

IN WITNESS WHEREOF, the Parties have caused this Property Management Agreement to be executed as of the Effective Date.

[// GUIDANCE: Add notarial acknowledgments if required by lender, title company, or local recorder’s office.]

EXHIBIT A

Legal Description of Property
[Attach full legal description or assessor’s parcel number.]

EXHIBIT B

Form of Residential Lease
[Attach or describe the approved lease form Manager is authorized to use.]