Property Management Agreement Template – California

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

The Owner appoints the Manager to manage the property located at [Full Address], including appurtenances, parking, and common areas (the "Property"). If the Property is part of an HOA, the Manager shall coordinate operations consistent with HOA rules and architectural guidelines.

2. Term

This Agreement begins on [Start Date] and continues until [End Date] unless earlier terminated under Section 9. If no End Date is specified, the Agreement renews month‑to‑month unless either Party provides 30 days' written notice.

3. Scope of Services

The Manager will advertise vacancies using appropriate channels, screen applicants, prepare lease documents using Owner‑approved forms, collect rent and deposits, and enforce lease terms. The Manager will coordinate routine maintenance, obtain bids for non‑routine work above $[Threshold], and respond to habitability issues with priority. The Manager will maintain tenant files, digital records, and provide monthly financial statements with a rent roll, income/expense ledger, and bank reconciliation.

4. Manager Compensation

Compensation is ☐ [X]% of monthly gross collected rent of monthly gross collected rent ☐ Flat $[X]% of monthly gross collected rent per month.

Leasing fee: $[Amount] for new tenancies;

renewal fee: $[Amount].

Emergency after‑hours dispatch and project management above $[Capital Threshold] require Owner pre‑approval unless necessary to protect life, safety, or property.

5. Owner Responsibilities

Owner will provide proof of ownership, prior leases, warranties, service contracts, and disclosure documents. Owner shall fund an operating reserve of $[Reserve] to be held in Manager's trust/operating account for repairs and expenses. Owner remains responsible for mortgage, taxes, and insurance premiums.

6. Financial Handling

Manager will deposit rents into a separate trust/operating account and pay authorized expenses from the account. Owner will receive monthly statements by [Delivery Method] and year‑end summaries suitable for tax preparation. All records will be available for inspection upon [X] business days' notice.

7. Liability and Indemnification

Manager is not liable for losses arising from tenant acts, vendor actions, or property conditions unless due to Manager's gross negligence or willful misconduct. Owner agrees to indemnify and hold Manager harmless for claims relating to the Property, except to the extent caused by Manager's gross negligence or willful misconduct.

8. Insurance

Owner shall maintain property and liability insurance (minimum limits $[Limit]) and name Manager as additional insured and certificate holder. Owner will provide updated proof of coverage annually or upon request.

9. Termination

Either Party may terminate with 30 days' written notice. For material breach, termination may be immediate. Upon termination, Manager will deliver keys, records, security‑deposit ledgers, and remaining funds within [X] business days.

10. Compliance and Notices

The Parties will comply with all applicable fair housing, anti‑discrimination, habitability, and privacy laws. Formal notices shall be delivered by personal service, certified mail, or recognized courier to the addresses above; email copies may be sent for convenience.

11. Governing Law; Entire Agreement

This Agreement is governed by the laws of California. This document contains the entire agreement and may be amended only in a signed writing by both Parties. If any provision is held invalid, the remainder remains enforceable.