Property Management Agreement Template

What is a property management agreement?

A property management agreement appoints a manager or letting agent to run a rental property on the owner's behalf. The most important parts are the money parts: what the manager charges, how much it can spend on repairs without asking, where tenants' rent and deposits are held, and when the owner gets paid and sees a statement.

This template covers the appointment and term, the handover of existing tenancies, the manager's services (finding and screening tenants, rent collection, deposits, repairs, inspections, compliance reminders and tenancy endings), management, leasing and renewal fees, a per-job repair limit with an emergency exception, client or trust money and an optional float, payouts and monthly or quarterly statements, the owner's duties (insurance, safety standards, funding repairs), records and data protection, responsibility for losses, and a full handover of keys, deposits and records when it ends.

When to Use a property management agreement

• A landlord handing a single house or condo to a local property manager
• A property management company onboarding a new owner client
• An owner of a small apartment building outsourcing day-to-day management
• An owner who is moving away and needs someone local to handle tenants
• Moving an already-let property from one manager to another

What You Fill In

22 blanks, then the name and email of each person who signs: owner, property manager.

What the property management agreement Covers

1. Term
2. The Manager's services
3. Fees
4. Repairs and spending limits
5. Client money and payments to the Owner
6. The Owner's responsibilities
7. Standard of work and records
8. Responsibility for losses
9. Ending the agreement
10. General

Using the property management agreement, step by step

1 Name the parties and property

Enter the owner and manager, and the manager's licence or registration number if local rules require one. Describe the property and say whether it is vacant or let — if it is let, the owner hands over leases, rent records and deposits by the start date.

2 Set the fees

Write the management fee the way you charge it — for example "8% of the rent collected each month". Add a tenant-finding fee and a renewal fee if you charge them (leave the tenant-finding fee blank if it's included), and list any other fees. Nothing else is payable unless the owner agrees in writing.

3 Agree the money rules

Set the most the manager may spend on one repair without approval (emergencies are handled separately), an optional float to keep back for bills, when the owner is paid, and whether statements are monthly or quarterly.

4 Send for signature

Choose the initial term and notice period, add the governing law and any extra services or exclusions, then send it to the owner. VergeHR places signature, date, title and initials boxes, and files the signed copy in Files.

Tips Before You Send It

• Check whether property managers need a licence, a client-money protection scheme or a trust account where the property is — many places require one or more of these.
• Set the repair limit with the property's age in mind: too low and the owner is called about every blocked drain, too high and they lose control of costs.
• Agree tenant criteria in advance and apply them consistently — fair housing and anti-discrimination laws apply to screening.
• At handover, list every deposit and where it is protected, so it can be transferred correctly if the manager changes.

Property management agreement: frequently asked questions

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This template is a general starting point, not legal advice. Laws differ between countries and states — have a lawyer review the agreement for your situation before you rely on it. Page last reviewed 2026-09-29.