Sample Management Agreement
This Management Agreement (Agreement) is dated ________ (Execution Date) and between MPI PROPERTY MANAGEMENT, LLC, a Wisconsin Limited Liability Company (Agent), and __________ (Owner), (description of Owner entity), (collectively, the Parties).
“Advertise” includes displaying “For Rent” signs, listing the Property as available for rent on various websites and other internet resources and any other methods deemed by the Agent as necessary to perform its obligations under this Agreement.
“Agent” includes MPI Property Management, LLC, its employees, representatives and any third-party, independent subcontractors engaged pursuant to this Agreement.
“Emergency” includes break-ins, heating failures, large leaks/basement flooding, electricity failure, storm damage, fire damage/ board ups, and any other action necessary to ensure the security of the property and safety of the tenants.
“Maintenance” includes the following services:
- Repairs, improvements and general upkeep of the Property as required by:
- The OWNER’s specifications with AGENT’s agreement;
- Necessity to protect the Property from damage or to maintain services to tenants as required by the tenancy agreement at the AGENT’s sole discretion.
“Management Fee” includes the following services:
- Offering rental concessions as inducements for prospective tenants to occupy the Property.
- Execution and modification of tenancy agreements.
- Communication with tenants, building inspectors, utility service providers and any other party as deemed necessary by the AGENT to execute its duties under this agreement.
- Execution of contracts in the name of the OWNER for utilities at the Property including but not limited to electricity, gas, fuel, water, and telephone.
- Coordination of tenant maintenance requests.
- Creation and transmission of monthly statements of receipts, expenses and charges required to maintain and manage the Property.
- Coordinating the collection, deposit and disbursal of funds on the OWNER’s behalf.
- Payment of property operating expenses out of monthly gross income.
- Payment to the OWNER of the net proceeds from the Property.
“Management” includes authority to provide following services on the OWNER’s behalf at the OWNER’s expense, the cost of which will be determined by the AGENT:
- Coordinating the advertising for the rental of the available Property or any part thereof.
- Conducting property inspections as agreed upon by the PARTIES.
- Inspection, maintenance, and replacement of smoke detectors and CO2 detectors as need and required by law.
- Performance of General Contractor work.
- Initiation, prosecution, and resolution of eviction actions.
- Defense of small-claims actions.
- Service of notices.
- Collection of judgments.
- Process application fees and credit checks.
- Processing security deposit returns.
- Execution of contracts in the name of the OWNER for rubbish hauling and any other services that are not included with the management fee.
“Net Proceeds” is what remains of gross income after the AGENT has deducted its management fee and other money due for work completed by the AGENT, and property operating expenses from OWNER’s account.
“Operating Reserve” are owner-supplied funds that will be used when the OWNER’s gross monthly income does not exceed the amounts due pursuant to this AGREEMENT. The operating reserve shall be maintained with owner-supplied funds at a minimum of $500 throughout the duration of this AGREEMENT.
“Tenancy Agreement” includes residential leases and rental agreements.
The Parties agree that the AGENT will maintain and manage the property located at ___________ in the County of Milwaukee, State of Wisconsin (the Property). See addendum “A” for multiple properties, if applicable. This Agreement has a term of one (1) year and begins on ________ (Annual Renewal Date) and ends on _________ (Termination Date).
This Agreement will automatically renew for a period of one (1) year on the Annual Renewal Date, unless either party notifies the other in writing sixty (60) days prior to the Annual Renewal Date of its intention to terminate this Agreement on the Termination Date.
Management fees for the Property are ______ per month.
Maintenance fees for the Property will be billed to the OWNER monthly and are calculated as follows:
- A $15.00 trip charge with a minimum one (1) hour service fee at the rate of $50.00 per hour, $75.00 per hour on weekends and holidays, plus each additional hour and the reasonable price for materials for work completed.
- AGENT agrees to secure prior approval from the OWNER for all maintenance that will incur a fee over ______ for any one work order or an agreed-upon price, except for monthly and/or recurring charges, or for an emergency identified in the AGENT’s sole discretion.
Any fees payable under this Agreement will be deducted from the monthly gross proceeds in the OWNER’s Trust Account prior to disbursal of funds to the OWNER. If there are insufficient funds in the OWNER’s Trust Account to pay the AGENT, the AGENT will notify the OWNER. Once notified, the OWNER must pay within five (5) days of receipt. Amounts not paid within five (5) days of receipt will be considered delinquent and will bear interest at a rate of 1.5% every thirty (30) days until paid in full.
Net proceeds from the property will be remitted to the OWNER once per calendar month. Any additional payments during the calendar month will be sent at a fee of $25.00. If the payment to the OWNER is in excess of the net proceeds for that month, OWNER agrees to return the excess payment to the AGENT within five (5) days of written notice from AGENT.
5. Deposit of Funds
AGENT agrees to deposit all funds collected for the OWNER in a Trust Account in a national or state insured institution qualified to engage in the banking business. AGENT shall not be held liable in the event of bankruptcy or failure of the financial institution. A $500 minimum operating reserve must be held on the OWNER’s behalf to be used when the OWNER’s funds do not exceed amounts due. OWNER shall supply AGENT with additional funds to maintain the required operating reserve minimum within five (5) days of the AGENT’s request. All security deposits collected by the AGENT will be held in the AGENT’s Trust Account.
OWNER agrees to carry, at OWNER’s sole expense, all necessary public liability insurance adequate to protect the interests of the parties to this Agreement. The insurance policy must be so written as to protect the AGENT in the same manner and to the same extent that the policy protects the OWNER and must name the AGENT as an additional insured. OWNER also agrees to supply AGENT with the name of any THIRD-PARTY employed by the OWNER to complete work on any of the PROPERTIES subject to this agreement prior to that THIRD-PARTY starting work on any project. OWNER further agrees to supply AGENT with the THIRD-PARTY’s insurance information prior to that party starting work on any project. OWNER also agrees to include AGENT as an additional insured whenever using a third-party to complete a project on a property that is subject to this AGREEMENT.
Should the OWNER choose a THIRD-PARTY contractor, agent or employee to make any repairs, OWNER shall not hold AGENT responsible for any acts, defaults of negligence of that THIRD PARTY. OWNER agrees to indemnify, defend, and hold the AGENT harmless from and against any and all claims, actions, suits, demands, assessments, or judgments asserted, and any and all losses, liabilities, damages, costs, and expenses (including, but not limited to, interest, penalties, expert witness fees, investigation fees, accounting fees, and attorneys' fees) alleged or incurred, arising out of or relating to any negligent acts or omissions of the AGENT in the exercise of the AGENTs rights or the performance or observance of the AGENT's obligations under this Agreement. Prompt notice must be given of any claim, and the OWNER will have control of any defense or settlement. AGENT must cooperate in all reasonable respects with the OWNER and OWNER’s attorneys in the investigation, trial and defense of any Third-Party Claim and any resulting appeal, which shall include: (a) furnishing such records, information and testimony, and attending such conferences, discovery proceedings, hearings, trials and appeals, as reasonably may be requested in connection with the Third-Party Claim, (b) affording access during normal business hours to the OWNER to, and reasonable retention by the AGENT of, records and information which are reasonably relevant to the Third-Party Claim, and (c) making its employees available on a mutually convenient basis to provide additional information and explanation of any material provided to the OWNER under this Agreement. The AGENT nevertheless may, at its own cost, participate in the investigation, trial and defense of such Third-Party Claim or any resulting appeal. The indemnification obligations under this Agreement shall survive termination or expiration of this Agreement.
All notices must be in writing and must be delivered to either party personally, or by United States certified or registered mail, postage prepaid, return receipt requested. Any notice must be delivered to the Parties at their respective physical or electronic mailing addresses set forth below their signatures or to such other address as shall be specified in writing by either party according to the requirements of this section. The date that notice will be deemed to have been received will be the date of delivery, when delivered personally, or the date set forth on the return receipt, if sent by certified or registered mail.
9. Termination by Agreement
This Agreement may be terminated by mutual written agreement of the Parties.
10. Termination for Cause
If either party breaches any provision of this agreement and if the breach is not cured within thirty (30) days after receiving written notice from the non-breaching party specifying the breach in reasonable detail, the non-breaching party has the right to terminate this agreement by giving written notice of its intent to terminate this Agreement to the party in breach, with termination effective immediately upon receipt. If the management contract is breached by the OWNER, OWNER agrees to pay the AGENT as liquidated damages and not a penalty, the greater of either 1) the management fees due under the remaining period of the contract or a termination fee of $500.00.
11. Termination by Sale
If the Property is sold during the term of this Agreement, a sixty (60) day written notice prior to the day of closing must be given to the AGENT for the termination of this Agreement to occur without a termination fee. If sixty-day written notice is not given prior to the day of closing, OWNER agrees to pay the AGENT as liquidated damages and not a penalty, the greater of either 1) the management fees due under the remaining period of the contract or 2) a termination fee of $500.00. Management fees will be assessed through the day of closing and the termination fee assessed thereafter. If this Agreement includes multiple properties only the sold property will be terminated from this Agreement.
12. Termination on Insolvency
Upon notice to the OWNER, AGENT has the right to terminate this agreement where the OWNER becomes insolvent or where the OWNER is delinquent on a payment longer than thirty (30) days. If the management contract is so terminated, OWNER agrees to pay the AGENT as liquidated damages and not a penalty, the greater of either 1) the management fees due under the remaining period of the contract or a termination fee of $500.00.
13. Legal Fees
The non-prevailing party in any dispute under this agreement must pay all costs and expenses, including, but not limited to, interest, penalties, expert witness fees, investigation fees, accounting fees, attorneys' fees, and any other expenses incurred by the prevailing party in resolving such dispute.
14. Compliance with Laws
Each party must comply in all respects with all applicable federal, state and local laws and/or ordinances governing the duties, obligations, and business practices of that party and must obtain any permits or licenses necessary for its operations. Neither party will take any action in violation of any applicable federal, state and local laws and/or ordinances that could result in liability being imposed on the other party.
15. Choice of Law
This agreement in governed by and construed in accordance with the internal laws of the STATE OF WISCONSIN, U.S.A., without reference to any conflicts of law provisions.
16. Choice of Venue
Each party hereby submits to the exclusive jurisdiction of, and waives any venue or other objection against, the federal court sitting in the Eastern District of the STATE OF WISCONSIN, U.S.A., or the Wisconsin state court in the COUNTY OF MILWAUKEE any legal proceeding arising out of or relating to this Agreement. Each party agrees that all claims and matters may be heard and determined in either court. Each party waives any right to object to such filing on venue, forum non-convenient, or similar grounds.
If any provision of this Agreement is declared by any court of competent jurisdiction to be illegal, void, or unenforceable, the other provisions will not be affected and remain in full force and effect.
Failure of either party to insist on strict compliance with any of the terms, covenants, and conditions of this Agreement will not be deemed a waiver of such terms, covenants, and conditions, or of any similar right or power hereunder at any subsequent time. No waiver of the provisions of this Agreement will be deemed or will constitute a waiver of any other provisions, nor will any waiver constitute a continuing waiver.
19. Cumulative Rights
Any specific right or remedy provided in this Agreement will not be exclusive but will be cumulative of all other rights and remedies available at law or in equity.
20. Force Majeure/Act of God
Neither party will be held responsible for any delay or failure in performance of any part of this agreement to the extent such delay or failure is caused by fire, flood, explosion, war, embargo, government requirement, civil or military authority, act of God, or other similar causes beyond its control and without the fault or negligence of the delayed or non-performing party. The affected party shall notify the non-affected party in writing within ten (10) days after the beginning of any such event that would affect its performance. Notwithstanding, if the affected party's performance is delayed for a period exceeding thirty (30) days from the date the non-affected party receives notice under this paragraph, the non-affected party will have the right, without any liability to the affected party, to terminate this agreement.
21. Written Modification
This Agreement may be supplemented, altered, modified or amended or otherwise changed by an instrument in writing signed by the Parties.
22. Entire Agreement
This Agreement constitutes the entire agreement of the Parties and supersedes all prior and contemporaneous agreements, representations, and understandings of the Parties.
IN WITNESS WHEREOF, the Parties have affixed or caused to be affixed their respective signatures;
Dated this _____ day of ____________________ 2021.
City, State Zip_______________________________
Owner/Agent for Owner
MPI Property Management, LLC