Property Management Agreement Template – Illinois

Owner:: [Property Owner's Full Name / Company Name]

Address:: [Owner's Address]

and

Manager:: [Property Manager's Full Name / Company Name]

Address:: [Manager's Address]

Together referred to as the "Parties."

1. Property Description

Owner authorizes Manager to manage [Full Address], including improvements, grounds, and service areas (the "Property").

2. Term

This Agreement is effective [Start Date] through [End Date] and renews month‑to‑month unless either Party gives 30 days' notice. Renewal terms may be adjusted by mutual written consent.

3. Scope of Services

Manager will advertise, screen applicants, execute leases, collect rent, handle tenant communications, and enforce rules. Manager will coordinate repairs and procure bids for work exceeding $[Threshold]. Monthly reporting will include a rent roll, income/expense ledger, and open work‑order list.

4. Manager Compensation

Management fee: ☐ [X]% of collected rent of collected rent ☐ Flat $[X]% of collected rent.

Leasing fee: $[Leasing Fee];

renewal fee: $[Renewal Fee].

Project management for capital improvements above $[Capital Threshold] billed at [Y]% with Owner approval.

5. Owner Responsibilities

Owner funds an operating reserve of $[Reserve], maintains insurance, and remains responsible for taxes, mortgage, and capital expenditures. Owner provides prior records and vendor contacts, if any.

6. Financial Handling

Manager will use a separate operating account, pay authorized expenses, and remit net proceeds monthly. Records will be available for Owner review upon [X] business days' notice.

7. Liability and Indemnification

Manager is not liable for tenant or vendor acts absent gross negligence or willful misconduct. Owner indemnifies Manager accordingly to the extent permitted by law.

8. Insurance

Owner must maintain property and liability insurance and list Manager as additional insured. Certificates of insurance shall be provided upon request.

9. Termination

Either Party may terminate with 30 days' written notice or immediately upon breach. Upon termination, Manager will return funds, records, and keys within [X] business days.

10. Compliance and Notices

Parties will comply with housing, accessibility, and privacy laws. Notices via certified mail/courier to addresses above; email copies as courtesy.

11. Governing Law; Entire Agreement

Governed by Illinois law. Entire agreement; written amendments only; severability applies.