Key Verified Owner Resource
What to Look for in a Management Agreement
The management agreement defines the relationship. Read the details before you hand over responsibility for your property.
Services and authority
The agreement should make clear what the manager is authorized to do, what services are included, and which decisions require owner approval.
Fees and expenses
Look for a complete description of management, leasing, renewal, inspection, maintenance, legal, advertising, and other charges. Watch for language that allows additional fees to be introduced through policies or schedules.
Term and termination
Check the initial term, renewal provisions, required notice, termination fees, and any circumstances under which the agreement can be ended immediately.
Maintenance and emergencies
Identify spending limits, emergency authority, contractor provisions, and procedures for repairs when you cannot be reached.
Owner funds and statements
Review reserve requirements, timing of statements and distributions, handling of security deposits, and procedures for reconciling owner funds.
Risk and legal provisions
Pay attention to indemnification, insurance requirements, dispute procedures, compliance responsibilities, and any limitations of liability. When a provision is unclear or consequential, consider obtaining professional legal advice.