Property Management Agreement (Non-Affiliated) (Long Form)

by Practical Law Real Estate

A Standard Document providing a long-form property management agreement for a commercial property, such as multitenant office, retail, multifamily, industrial, or mixed-use assets. This agreement is drafted for use between a property owner and a non-affiliated, third-party manager. This comprehensive Standard Document establishes a framework for property operations, defining the manager's duties including lease management, tenant relations, property compliance, and construction oversight. It addresses financial matters like budget preparation, reporting requirements, and the administration of operating and security deposit accounts. Key operational provisions cover service procurement, tax contests, and employee management. The agreement also details risk allocation through robust insurance and indemnification clauses, sets the manager's compensation structure, and outlines clear termination rights. This Standard Document has integrated notes with important explanations and drafting and negotiating tips for owners and managers. While property management agreements are generally governed by state law, this jurisdictionally neutral template is useful and relevant in every state.