The Commercial Property Management Agreement serves as the foundational document governing the relationship between commercial property owners and professional management companies in the United States. This agreement is essential when property owners seek to delegate day-to-day operations, maintenance, and administrative responsibilities to experienced professionals. The document typically covers areas such as property maintenance, tenant relations, financial management, reporting requirements, and regulatory compliance. It's particularly important in ensuring clear delineation of responsibilities, establishing performance metrics, and protecting both parties' interests while maintaining compliance with federal, state, and local regulations.
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1. Parties: Identification of property owner and management company, including legal names and addresses
2. Background: Brief description of the property and purpose of the management agreement
3. Definitions: Key terms used throughout the agreement, including Property, Services, Management Fee, etc.
4. Appointment and Authority: Formal appointment of manager and scope of authority
5. Manager's Duties and Responsibilities: Detailed outline of services to be provided
6. Compensation: Management fees, payment terms, and reimbursable expenses
7. Term and Termination: Duration of agreement and termination provisions
8. Insurance and Indemnification: Required insurance coverage and mutual indemnification provisions
1. Environmental Compliance: Additional provisions for properties with specific environmental concerns or requirements
2. Capital Improvements: Procedures and authorizations for major property improvements and renovations
3. Emergency Procedures: Special protocols and procedures for handling emergency situations
4. Building Security: Specific security requirements and procedures for high-security properties
1. Schedule A - Property Description: Detailed description of managed property including address and specifications
2. Schedule B - Services Schedule: Detailed list of management services to be provided
3. Schedule C - Fee Schedule: Breakdown of management fees and additional charges
4. Schedule D - Insurance Requirements: Specific insurance coverage requirements and limits
5. Schedule E - Maintenance Schedule: Regular maintenance requirements and schedules
6. Schedule F - Reporting Requirements: Format and frequency of required management reports
7. Schedule G - Key Performance Indicators: Metrics for evaluating management performance
Relevant legal definitions
Agreement
Applicable Laws
Approved Budget
Building Systems
Capital Expenditures
Common Areas
Commencement Date
Emergency
Environmental Laws
Effective Date
Fiscal Year
Gross Revenue
Hazardous Materials
Initial Term
Insurance Requirements
Lease(s)
Management Fee
Management Services
Manager
Net Operating Income
Operating Account
Operating Expenses
Owner
Owner's Representative
Permits
Property
Property Personnel
Renewal Term
Reserve Account
Service Contracts
Standard of Care
Tenant(s)
Term
Termination Date
Working Capital
Applicable Laws
Approved Budget
Building Systems
Capital Expenditures
Common Areas
Commencement Date
Emergency
Environmental Laws
Effective Date
Fiscal Year
Gross Revenue
Hazardous Materials
Initial Term
Insurance Requirements
Lease(s)
Management Fee
Management Services
Manager
Net Operating Income
Operating Account
Operating Expenses
Owner
Owner's Representative
Permits
Property
Property Personnel
Renewal Term
Reserve Account
Service Contracts
Standard of Care
Tenant(s)
Term
Termination Date
Working Capital
Clauses
Appointment and Authority
Scope of Services
Term and Termination
Management Fees and Expenses
Operating Budget
Property Maintenance
Leasing and Tenant Relations
Financial Management
Insurance Requirements
Indemnification
Record Keeping and Reporting
Compliance with Laws
Environmental Matters
Emergency Procedures
Health and Safety
Confidentiality
Non-Solicitation
Assignment and Delegation
Force Majeure
Dispute Resolution
Notice Requirements
Governing Law
Severability
Entire Agreement
Amendments
Property Personnel
Service Contracts
Capital Improvements
Bank Accounts
Standard of Care
Warranties and Representations
Scope of Services
Term and Termination
Management Fees and Expenses
Operating Budget
Property Maintenance
Leasing and Tenant Relations
Financial Management
Insurance Requirements
Indemnification
Record Keeping and Reporting
Compliance with Laws
Environmental Matters
Emergency Procedures
Health and Safety
Confidentiality
Non-Solicitation
Assignment and Delegation
Force Majeure
Dispute Resolution
Notice Requirements
Governing Law
Severability
Entire Agreement
Amendments
Property Personnel
Service Contracts
Capital Improvements
Bank Accounts
Standard of Care
Warranties and Representations
Relevant Industries
Relevant Teams
Relevant Roles
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