Property Management Agreement Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 3,949 reviews

Jump to Section

Need help with a legal contract?

Post Project Now

What does a property management agreement cost? If you are a rental property owner looking to hire an individual or a company to manage your rental, you may ask this question. Let’s explore this question and review some general information about property management agreements and what they entail.

How Much Does a Property Management Agreement Cost?

A property management agreement is a legally binding contract between a property owner and a property management company or individual agreeing to manage the rental on the owner’s behalf.

It is common for property owners who rent out their spaces to hire a professional who maintains the rentals. This is especially common if the property owner lives far away from their rental properties.

Some services that a property manager will provide include:

  • Tenant screening and background checks
  • Preparing units for rent (cleaning, landscaping, maintenance, etc.)
  • Drafting a lease agreement
  • Collecting rent and keeping accounts
  • Handling maintenance requests or tenant complaints
  • Marketing and advertising
  • Property evaluation
  • Property inspections

When a property owner hires a property manager, they essentially hand their rental business over to another entity to run. For this reason, having a well-drafted and detailed property management agreement is essential for a successful business relationship.

Some property management firms have their property management agreements; in other cases, the property owner will provide the contract. Both parties are encouraged to hire an attorney to draft the agreement.

An experienced real estate lawyer will know what terms and conditions should be included in a property management agreement to protect both businesses best.

Based on ContractsCounsel's marketplace data, the average cost of a property management agreement is $583.33.

What's Typically Included in a Property Management Agreement

The details of a property management agreement will vary based on the type of property, services provided, and both parties’ preferences. The most fundamental property management agreement should include the following key information:

  • Fees and services. A detailed breakdown of all services the property manager provides and associated fees. The management company usually charges a percentage of the rent but could charge more for additional assistance.
  • Responsibilities of the property owner. Property owners will still have certain responsibilities if they want to be hands-off. These include setting up a bank account and maintaining a minimum balance for repairs, emergencies, and property maintenance.
  • Limitations of the property owner. Property management companies often protect their business by prohibiting property owners from conducting rent deals independently. This is known as a sublease.
  • Equal opportunity housing. Every property management agreement should include verbiage about abiding by state and federal Equal Opportunity Housing laws.
  • Liability. The liability clause, sometimes called a hold harmless agreement, limits the property management company’s liability. This clause protects the management company by limiting its liability except in cases where the company has been negligent.
  • Contract duration. Property management agreements usually have a one-year minimum commitment. Property owners must consult with their lawyers before signing a property management agreement.
  • Termination clause. Rules and requirements surrounding terminating the contract before it expires. Some contracts will include fees or penalties for early termination.

Every property management company will have standards and procedures that should be listed in the property management agreement.

Property owners can negotiate these terms or hire an attorney to review the contract and negotiate on their behalf.

Meet some lawyers on our platform

Ryenne S.

127 projects on CC
View Profile

Bryan B.

95 projects on CC
View Profile

Kristen R.

39 projects on CC
View Profile

Kelvin R.

10 projects on CC
View Profile

Examples of Property Management Agreement Projects

Property Management Agreement Drafting

Property management agreements are an important part of owning a successful property rental business. This contract will lay out the roles and responsibilities of the property owner and the property manager and facilitate a cooperative working relationship.

For this reason, many property owners and managers choose to hire a lawyer to draft their property management agreements. A lawyer will ensure that the contract adheres to state laws surrounding property rentals and contracts and that the agreement securely protects both businesses.

Property Management Agreement Review

A property manager or a property owner can draft their agreement. If either party takes this route, they should always have the contract reviewed by a licensed attorney before putting it to use.

When a lawyer reviews a property management agreement, they check for mistakes, fairness, and whether the contract follows local and state laws. This ensures that both parties are equally protected under the contract.

Drafting a Property Management Agreement Cost

When a property owner hires a lawyer to draft a property management agreement, they must pay the legal fees. A lawyer will charge the client for the following:

  • Time spent drafting the contract
  • Consultations
  • Revisions

According to ContractsCounsel's marketplace data, the average property management agreement drafting costs are $500.00 across all states.

Reviewing a Property Management Agreement Cost

Hiring a lawyer to review a property management agreement will also incur legal fees because it takes time and legal expertise to review and revise a legally binding agreement.

ContractsCounsel's marketplace data shows that the average property management agreement review costs $750.00 across all states.

How Do Lawyers Charge for a Property Management Agreement?

Hourly Rates for a Property Management Agreement

Hourly rates are usually the most common way attorneys charge for their time. In this fee arrangement, the lawyer will charge the client a set hourly rate for the time spent completing the project.

This method of billing has both positives and negatives. Attorneys benefit from ensuring they are compensated for every minute of their time; however, they usually aren’t paid until the project is completed.

The negative for clients is that although they are informed of the hourly rate, they don’t know the total cost of their legal fees until the completion of the project, which can sometimes cause some sticker shock.

The marketplace data for ContractsCounsel shows that the average hourly rate for a real estate lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for a Property Management Agreement

Some lawyers use a flat fee rate billing method for contract drafting. In this fee arrangement, the lawyer will quote a lump sum rate for the project's cost, usually to be paid upfront.

From the client’s perspective, a flat fee billing structure is usually more desirable because they know exactly what they are being charged for legal services and will not be surprised with an expensive bill at the end of legal services.

It is important to make sure the client knows what’s included with the fee before starting the project, as it may not involve rounds of revisions or consultations.

ContractsCounsel's marketplace data shows that a property management agreement's average flat fee rate is $583.33.

Get Help with a Property Management Agreement

Do you need help with a property management agreement project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from real estate lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Christopher R. on ContractsCounsel
View Christopher
5.0 (6)
Member Since:
August 25, 2020

Christopher R.

Free Consultation
Get Free Proposal
Boston, MA
9 Yrs Experience
Licensed in MA, NH
Suffolk University Law School

Corporate and transactional attorney in sixth year of practice. Focus areas include general corporate counsel, labor and employment law, business partnership matters, securities matters related to privately-held companies, and regulatory compliance in securities and finance matters.

Forest H. on ContractsCounsel
View Forest
5.0 (42)
Member Since:
July 14, 2020

Forest H.

Free Consultation
Get Free Proposal
Nashville, TN
25 Yrs Experience
Licensed in FL, TN, TX
Washington and Lee University

Forest is a general practice lawyer. He provides legal advice regarding small business law, contracts, estates and trusts, administrative law, corporate governance and compliance. Forest practiced complex commercial litigation in Florida for eight years, representing clients such as Host Marriott, Kellogg School of Business, and Toyota. Since moving to Nashville in 2005, he has provided legal advice to clients forming new businesses, planning for the future, and seeking funding through the use of equity and/or debt in their businesses. This advice has included the selection of business type, assistance in drafting and editing their business plans and offering material, reviewing proposed term sheets, and conducting due diligence. Forest is a member of the Florida, Tennessee, and Texas Bars; in addition. Forest has held a Series 7, General Securities Representative Exam, Series 24, General Securities Principal, and Series 63, Uniform Securities Agent State Law.

Anjali S. on ContractsCounsel
View Anjali
5.0 (1)
Member Since:
July 15, 2020

Anjali S.

Free Consultation
Get Free Proposal
Orlando, FL
12 Yrs Experience
Licensed in CA, FL, NY
NYU School of Law

CA, NY, and FL licensed attorney with nearly a decade of experience in intellectual property, data privacy, commercial contracts, and employment. I also have both the CIPP/US and CIPP/E privacy credentials. Basically, everything your business needs!

Christopher R. on ContractsCounsel
View Christopher
5.0 (1)
Member Since:
December 7, 2021

Christopher R.

Managing Attorney
Free Consultation
Get Free Proposal
7 Yrs Experience
Licensed in FL, OH
Capital University Law School

Trusted business and intellectual property attorney for small to midsize businesses. Helping businesses start, grow, scale and protect.

Lawrence S. on ContractsCounsel
View Lawrence
5.0 (14)
Member Since:
July 20, 2020

Lawrence S.

Free Consultation
Get Free Proposal
Miami/Coral Gables, FL
42 Yrs Experience
Licensed in FL
University of Miami

Lawrence A. “Larry” Saichek is an AV rated attorney and a CPA focusing on business and real estate transactions, corporate law and alternative dispute resolution. With a background including five years of public accounting and six years as “in house” counsel to a national real estate investment company, Larry brings a unique perspective to his clients – as attorney, accountant and businessman. Many clients think of Larry as their outside “in house” counsel and a valued member of their team. Larry is also a Florida Supreme Court Certified Mediator and a qualified arbitrator with over 25 years of ADR experience.

Stacey D. on ContractsCounsel
View Stacey
5.0 (11)
Member Since:
July 16, 2020

Stacey D.

Free Consultation
Get Free Proposal
Grand Rapids, MI
13 Yrs Experience
Licensed in FL, MI
Stetson University College of Law

I enjoy helping businesses of all sizes succeed, from start-ups to existing small and medium sized businesses. I regularly advise corporate clients on a variety of legal issues including formation, day to day governance, reviewing and drafting business contracts and other agreements, business acquisitions and sales, as well as commercial and residential real estate issues, including sales, purchases and leases. As an attorney licensed in both Michigan and Florida, I also advise clients on real estate issues affecting businesses and individuals owning real property in either state, whether commercial, residential or vacation/investment property. I also regularly assist nonprofit organizations in obtaining and maintaining tax exempt status, and provide general legal counsel on all matters affecting public charities, private foundations and other nonprofit organizations.

David C. on ContractsCounsel
View David
Member Since:
July 15, 2020

David C.

Law Firm Principal
Free Consultation
Get Free Proposal
Miami, FL
42 Yrs Experience
Licensed in FL, NJ
University of Florida, Levin College of Law

David H. Charlip, the principal of Charlip Law Group, LC, is one of only 101 Board Certified Civil Trial Lawyers in Miami-Dade, with over 40 years of litigation experience. Mr. Charlip is also one of only 136 Florida Civil Law Notaries. He is also a Florida Supreme Court Certified Circuit Civil Mediator and a Florida Supreme Court Approved Arbitrator. He has managed and litigated cases across the country. Mr. Charlip has advised businesses, drafted business formation and purchase and sale documents and litigated business disputes for over 40 years and is very familiar with all aspects of contractual relations.

Lourdes H. on ContractsCounsel
View Lourdes
Member Since:
July 15, 2020

Lourdes H.

Free Consultation
Get Free Proposal
Miami, FL
19 Yrs Experience
Licensed in FL, NJ
University of Miami, J.D.

With over 16 years of experience in the area of estate planning, trademarks, copyrights and contracts, I am currently licensed in Florida and NJ. My expertise includes: counseling clients on intellectual property availability, use and registration; oversee all procedural details of registration and responses with the USPTO/US Copyright Office; negotiate, draft and review corporate contracts and licensing; counsel clients on personal protection, planning and drafting comprehensive estate plans.

Melissa T. on ContractsCounsel
View Melissa
Member Since:
July 15, 2020

Melissa T.

Attorney and Law Firm Owner/President
Free Consultation
Get Free Proposal
Maitland, FL
21 Yrs Experience
Licensed in FL
University of Florida Levin College of Law

Melissa Taylor, the President and founding partner of Maurer Taylor Law, specializes in business contract review and drafting and is a second-generation attorney with private firm, in-house counsel, governmental, entrepreneurial, and solo practitioner experience. Melissa has a strong legal background, a dedication to customer service, is friendly, warm and communicative, and is particularly skilled at explaining complex legal matters in a way that's easy to understand. Melissa personally handles all client matters from start to finish to ensure client satisfaction.

Brett G. on ContractsCounsel
View Brett
Member Since:
July 15, 2020
Aaron M. on ContractsCounsel
View Aaron
Member Since:
July 15, 2020

Aaron M.

Free Consultation
Get Free Proposal
New York, NY
13 Yrs Experience
Licensed in NJ, NY
Fordham University School of Law

Aaron focuses his practice on entrepreneurs and emerging growth companies, providing general counsel services for companies from formation through exit. Aaron frequently advises clients in connection with routine and unique legal, business, and strategic decisions, including corporate, business and technology transactions, angel and venture financings, mergers and acquisitions, protection of intellectual property, and information privacy and data security.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call