PROPERTY MANAGEMENT AGREEMENT

(Ohio – Court-Ready Template)

[// GUIDANCE: This template is drafted to comply with Ohio real-estate brokerage statutes, trust-account requirements, and common disclosure mandates. All bracketed text must be customized before execution.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Appointment; Term
4. Manager’s Services & Authority
5. Owner’s Duties
6. Compensation & Fees
7. Trust Account; Handling of Funds
8. Insurance & Risk Management
9. Representations & Warranties
10. Covenants
11. Indemnification & Limitation of Liability
12. Default; Remedies; Termination
13. Dispute Resolution
14. General Provisions
15. Execution Block
16. Exhibits (A–C)

1. DOCUMENT HEADER

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

a. [OWNER LEGAL NAME], a [state/country] [entity type] having its principal place of business at [address] (“Owner”); and
b. [MANAGER LEGAL NAME], an Ohio-licensed real-estate broker, License No. [__], with its principal place of business at [address] (“Manager”).

Owner and Manager are sometimes referred to herein individually as a “Party” and collectively as the “Parties.”

RECITALS
A. Owner is the fee-simple owner of the real property commonly known as [PROPERTY ADDRESS] and legally described in Exhibit A (the “Property”).
B. Manager is duly licensed under Ohio law to manage real estate for others for compensation and desires to provide property-management services to Owner on the terms set forth herein.
C. The Parties enter into this Agreement for good and valuable consideration, the receipt and sufficiency of which are acknowledged.

NOW, THEREFORE, the Parties agree as follows:

2. DEFINITIONS

The following terms have the meanings set forth below and apply throughout this Agreement.

“Applicable Law” means all federal, state, and local statutes, regulations, ordinances, and common-law principles applicable to the Property or the performance of this Agreement, including without limitation Ohio Rev. Code Ann. Chapter 4735, the Federal Lead-Based Paint Disclosure Rule, 42 U.S.C. § 4852d, and any successor provisions.

“Depository Bank” has the meaning set forth in Section 7.1.

“Management Fee” means the compensation payable to Manager under Section 6.1.

“Permitted Expenditures” means those expenditures authorized under Section 4.4.

“Rental Agreement” means any residential or commercial lease, license, or occupancy agreement covering the Property.

Additional definitions appear in context or in Exhibit D (Glossary).

3. APPOINTMENT; TERM

3.1 Exclusive Appointment. Owner hereby irrevocably appoints Manager as the sole and exclusive agent to manage, operate, lease, and maintain the Property, subject to the limitations herein. Manager accepts such appointment.

3.2 Initial Term. The term of this Agreement commences on the Effective Date and continues for [INITIAL TERM, e.g., “one (1) year”] (the “Initial Term”), unless earlier terminated pursuant to Article 12.

3.3 Renewal. Upon expiration of the Initial Term, this Agreement shall automatically renew for successive periods of [RENEWAL TERM, e.g., “one (1) year”] (each a “Renewal Term”) unless either Party provides written notice of non-renewal at least [X] days prior to the end of the then-current term.

4. MANAGER’S SERVICES & AUTHORITY

4.1 Scope of Services. Manager shall provide the services customarily rendered by professional property managers in Ohio, including:
a. marketing and leasing the Property;
b. collecting rents and other income;
c. supervising maintenance and repairs;
d. enforcing Rental Agreements;
e. accounting and reporting; and
f. complying with Applicable Law.

4.2 Leasing Authority. Manager is authorized to negotiate, execute, and deliver Rental Agreements on behalf of Owner for terms not exceeding [MAX LEASE TERM, e.g., “one (1) year”] and at rents not less than [MINIMUM RENT, e.g., “$____ per month”] without prior Owner consent. Leases exceeding these parameters require Owner’s prior written approval.

4.3 Legal Proceedings. Manager may institute, prosecute, and settle actions to collect rent or evict tenants, but shall not retain counsel or incur litigation costs exceeding $[THRESHOLD] in any single matter without Owner’s consent, except in emergencies.

4.4 Expenditures. Manager may make or authorize expenditures up to $[LIMIT] per occurrence for maintenance, repairs, or replacements (collectively, “Permitted Expenditures”) without prior Owner approval. Expenditures exceeding such limit require Owner’s prior consent except in emergencies affecting health, safety, or preservation of the Property.

4.5 No Brokerage of Sale. This Agreement does not authorize Manager to list or sell the Property; any such brokerage services require a separate written agreement.

5. OWNER’S DUTIES

5.1 Information & Documentation. Owner shall provide Manager all documents and information reasonably necessary for performance, including copies of existing warranties, service contracts, surveys, and title documents.

5.2 Funding Obligations. Owner shall maintain on deposit with Manager a reserve (“Operating Reserve”) of not less than $[RESERVE AMOUNT] to fund Permitted Expenditures.

5.3 Insurance. Owner shall procure and maintain, at its sole cost, the insurance described in Exhibit C.

5.4 Lead-Based Paint & Other Disclosures. Owner shall deliver to Manager all legally required disclosure materials (including EPA-approved lead-based paint pamphlets for pre-1978 housing) and shall certify their accuracy.

6. COMPENSATION & FEES

6.1 Management Fee. In consideration of the Services, Owner shall pay Manager a monthly fee equal to [FEE STRUCTURE, e.g., “X % of gross collected rents”] (the “Management Fee”).

6.2 Leasing Fee. For each new tenant procured by Manager, Owner shall pay [LEASING FEE, e.g., “one month’s rent”].

6.3 Other Fees. Manager shall be entitled to the additional compensation set forth in Exhibit B (Fee Schedule), if any.

6.4 Payment. All fees due to Manager may be deducted from gross receipts held in the Trust Account pursuant to Section 7. Manager shall remit net proceeds to Owner on or before the [DAY] day of each calendar month, accompanied by an accounting statement.

6.5 Late Charges & Interest. Amounts not paid when due shall bear interest at the lesser of (a) ten percent (10%) per annum or (b) the maximum rate permitted under Applicable Law.

7. TRUST ACCOUNT; HANDLING OF FUNDS

7.1 Trust Account. In accordance with Ohio Rev. Code Ann. § 4735.18(L), Manager shall deposit all trust funds belonging to Owner or tenants into a separate, federally insured trust or escrow account (the “Trust Account”) maintained with [BANK NAME] (the “Depository Bank”). The Trust Account shall be titled “[Manager Name], Trustee for [Owner Name], Trust Account.”

7.2 Segregation; Interest. Trust funds shall not be commingled with Manager’s funds. Interest earned, if any, shall accrue to [OWNER / TENANT] unless otherwise required by Applicable Law.

7.3 Disbursements. Manager shall disburse funds only for (a) Operating Expenses, (b) Management Fees and other authorized compensation, and (c) transfers to Owner.

7.4 Bonding & Audit Rights. Manager shall maintain fidelity bonding of not less than $[AMOUNT] covering employees handling funds. Owner may, upon not less than five (5) Business Days’ notice, audit the Trust Account during normal business hours.

[// GUIDANCE: Ohio law mandates prompt deposit of tenant funds and detailed record-keeping. Do not alter the trust-account structure without confirming statutory updates.]

8. INSURANCE & RISK MANAGEMENT

8.1 Owner Insurance. Owner shall maintain (a) minimum $1 million commercial general liability coverage, (b) property insurance covering full replacement cost, and (c) such additional coverages as listed in Exhibit C.

8.2 Manager Insurance. Manager shall maintain (a) professional liability (errors & omissions) coverage of not less than $[AMOUNT], and (b) workers’ compensation as required by law.

8.3 Waiver of Subrogation. Each Party waives subrogation rights against the other to the extent of applicable insurance proceeds, except for intentional misconduct.

9. REPRESENTATIONS & WARRANTIES

9.1 Mutual Representations. Each Party represents and warrants that:
a. it is duly organized, validly existing, and in good standing;
b. it has full power and authority to execute and perform this Agreement; and
c. this Agreement constitutes a legal, valid, and binding obligation enforceable against it.

9.2 Manager Representations. Manager further represents and warrants that:
a. it holds an active Ohio real-estate broker license in good standing under Ohio Rev. Code Ann. § 4735.07;
b. it will maintain such license during the Term; and
c. it is in compliance with all trust-account and record-keeping obligations under Ohio Rev. Code Ann. § 4735.18.

9.3 Survival. The representations and warranties in this Article 9 survive termination of this Agreement for a period of [SURVIVAL PERIOD, e.g., “one (1) year”].

10. COVENANTS

10.1 Compliance with Law. Manager shall perform Services in material compliance with Applicable Law.

10.2 Disclosures to Tenants. Manager shall deliver, on Owner’s behalf, all disclosures required by Applicable Law, including but not limited to (a) lead-based paint disclosures for pre-1978 housing, and (b) smoke detector or radon disclosures where mandated.

10.3 Records. Manager shall maintain books and records for the Property for not less than five (5) years after creation and shall provide copies to Owner upon request.

10.4 Non-Solicitation. During the Term and for twelve (12) months thereafter, Owner shall not, directly or indirectly, solicit for employment any employee of Manager who performed Services hereunder.

11. INDEMNIFICATION & LIMITATION OF LIABILITY

11.1 Manager Indemnity. Manager shall indemnify, defend, and hold Owner, its affiliates, and their respective directors, officers, employees, and agents harmless from and against all claims, damages, losses, liabilities, costs, and expenses (including reasonable attorneys’ fees) (collectively, “Losses”) arising out of (a) breach of this Agreement by Manager, (b) gross negligence or willful misconduct of Manager or its agents, or (c) violation of Applicable Law by Manager.

11.2 Limitation of Liability. Except for Losses arising from Manager’s gross negligence, willful misconduct, or fraud, Manager’s aggregate liability under this Agreement shall not exceed the total Management Fees actually received by Manager during the twelve (12) months immediately preceding the event giving rise to liability.

11.3 No Consequential Damages. Neither Party shall be liable for consequential, incidental, or punitive damages except to the extent awarded to a third party in a claim subject to indemnification.

11.4 Insurance Proceeds. Any indemnified Losses shall be reduced by insurance proceeds actually received by the indemnified Party.

12. DEFAULT; REMEDIES; TERMINATION

12.1 Events of Default. The following constitute an “Event of Default”:
a. failure to pay any monetary obligation within ten (10) days after written notice;
b. material breach of any non-monetary covenant not cured within thirty (30) days after notice;
c. insolvency, bankruptcy, or receivership of a Party; or
d. Manager’s suspension or revocation of its broker license.

12.2 Remedies. Upon an Event of Default, the non-defaulting Party may, in addition to all remedies at law or in equity:
a. terminate this Agreement immediately upon written notice;
b. recover actual damages; and
c. obtain injunctive or other equitable relief without posting bond to the extent permitted by law.

12.3 Early Termination for Convenience. Either Party may terminate this Agreement without cause upon [X] days’ prior written notice; provided, Owner shall pay Manager all earned but unpaid fees through the termination date.

12.4 Transition. Upon termination, Manager shall (a) transfer possession of the Property records and funds to Owner or its designee within ten (10) days, (b) assign all assignable contracts upon request, and (c) reasonably cooperate in an orderly handover.

13. DISPUTE RESOLUTION

13.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, without regard to its conflict-of-law principles.

13.2 Forum Selection. Each Party irrevocably submits to the exclusive jurisdiction of the state courts located in [COUNTY, OHIO] for any action arising out of or relating to this Agreement.

13.3 Arbitration. [OPTIONAL] At either Party’s election, any dispute shall be submitted to binding arbitration administered by the American Arbitration Association pursuant to its Commercial Arbitration Rules. The arbitration shall take place in [CITY, OHIO]. Judgment on the award may be entered in any court of competent jurisdiction.

13.4 Jury Trial Waiver. [OPTIONAL] EACH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS RIGHT TO A TRIAL BY JURY IN ANY ACTION ARISING OUT OF THIS AGREEMENT.

13.5 Injunctive Relief. Nothing in this Article 13 limits either Party’s right to seek temporary, preliminary, or permanent injunctive relief in a court of competent jurisdiction to protect confidential information or prevent irreparable harm.

14. GENERAL PROVISIONS

14.1 Amendments; Waivers. No amendment or waiver of any provision of this Agreement is effective unless it is in writing and signed by the Parties. A waiver of any breach is not a waiver of any other breach.

14.2 Assignment. 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 with prior written notice to Manager.

14.3 Successors & Assigns. This Agreement binds and benefits the Parties and their respective successors and permitted assigns.

14.4 Severability. If any provision is held invalid, illegal, or unenforceable, the remaining provisions remain in full force and effect, and the invalid provision shall be re-formed to the minimum extent necessary to make it enforceable.

14.5 Entire Agreement. This Agreement, including the Exhibits, constitutes the entire agreement between the Parties and supersedes all prior understandings.

14.6 Counterparts; Electronic Signatures. This Agreement may be executed in counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures delivered via facsimile or electronic transmission (e.g., PDF, DocuSign) are deemed original.

14.7 Notices. All notices must be in writing and delivered (a) by personal delivery, (b) certified mail (return-receipt requested), (c) nationally recognized overnight courier, or (d) email with confirmation of receipt, in each case to the addresses set forth above or as later designated by notice.

15. EXECUTION BLOCK

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

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

MANAGER:
[MANAGER LEGAL NAME]
Ohio Real-Estate Broker License No. [_]
By: ____
Name: ____
Title: _____
Date: _________

[Notary acknowledgment if required under state law]

16. EXHIBITS

Exhibit A – Legal Description of the Property
Exhibit B – Fee Schedule (Including Leasing, Renewal, and Ancillary Fees)
Exhibit C – Insurance Requirements
Exhibit D – Glossary of Additional Defined Terms

[// GUIDANCE:
1. Attach a current property-description legal (metes & bounds) in Exhibit A to ensure enforceability.
2. Confirm all fee structures comply with any capped amounts under lender or HOA documents.
3. Review landlord-tenant ordinances in the municipality (e.g., Cincinnati, Cleveland) for additional local disclosure obligations.
4. Prior to execution, verify Manager’s license status via the Ohio Division of Real Estate & Professional Licensing online portal.
5. Consult tax counsel regarding potential sales-tax obligations on management fees.]