A property management agreement is the contract between the property owner and the manager. It should explain the manager's services, authority, compensation, reporting duties, use of vendors, handling of tenant money, insurance responsibilities, and the process for ending the relationship.
Define the scope of management services
Start with a plain list of what the manager is expected to do. The agreement may address marketing, tenant screening, leasing, renewals, rent collection, inspections, maintenance coordination, notices, bookkeeping, owner reports, and emergency response. Do not assume a service is included because it is common in the market.
| Agreement area | What to verify | Owner question |
|---|---|---|
| Leasing | Advertising, screening, lease signing, renewals, and notices | What may the manager sign without separate approval? |
| Operations | Rent collection, inspections, maintenance, and emergencies | Which decisions require the owner's written consent? |
| Accounting | Statements, reconciliations, reserves, and supporting records | How often will complete reports be delivered? |
| Transition | Termination, notice, final accounting, and record transfer | What must be delivered when management ends? |
Review leasing and renewal authority
Confirm whether the manager may advertise, approve applicants, sign leases, renew agreements, change rents, offer concessions, approve pets, or negotiate addenda. The contract should show where the manager may act independently and where owner approval is required.
Trace rent collection and tenant funds
Review where rents, security deposits, advance rent, application fees, and other tenant funds are received and held. Ask how collections, returned payments, payment plans, credits, refunds, and owner distributions appear in the accounting records. The agreement should not be treated as proof that every money-handling practice complies with Florida law.
Set repair and emergency authority limits
Identify the dollar limit for ordinary repairs, the process for larger work, and any exception for emergencies. Clarify whether the limit applies per item, per incident, per month, or per property. Review who may approve capital work, insurance claims, code-related repairs, or work affecting building systems.
| Repair issue | Record to review | Follow-up |
|---|---|---|
| Routine repairs | Approval threshold and work-order policy | When is owner approval required? |
| Emergencies | Emergency definition and notification rule | How quickly must the owner be informed? |
| Capital work | Bid, contract, and payment controls | Who approves scope, vendor, and final payment? |
| Recurring vendors | Service contracts and cancellation terms | Do vendor agreements survive a manager change? |
Examine vendor selection, affiliations, and markups
Ask whether the manager may select vendors without bids, use affiliated companies, receive rebates, add administrative charges, or mark up invoices. Review disclosure language, insurance requirements, licenses when applicable, warranties, invoice support, and the owner's right to approve or replace vendors.
Read the complete compensation schedule
Management compensation may include a base fee plus leasing, renewal, inspection, project-management, notice, court-appearance, after-hours, setup, termination, or other charges. The key is to make sure every charge is tied to a defined service, timing rule, and calculation method, then have the complete fee schedule reviewed with the agreement.
Verify reporting and accounting duties
Confirm the reporting schedule and the records the owner receives. Useful packages may include an income statement, balance sheet, general ledger, rent roll, delinquency report, bank reconciliation, security-deposit ledger, work-order report, invoice copies, reserve activity, and owner distribution statement.
Review insurance, indemnity, and risk provisions
Identify required insurance, additional-insured language, claims-notification duties, deductibles, waivers, indemnity clauses, and limits on liability. These provisions can shift meaningful risk. A Florida attorney and insurance professional should review them; the page cannot determine whether a clause is enforceable or adequate.
Understand term, renewal, and termination
Record the start date, initial term, automatic-renewal language, notice period, termination rights, termination fees, cause provisions, and any continuing obligations. Ask what happens to active leases, vendor contracts, open work orders, tenant communications, deposits, keys, passwords, and pending claims.
Protect ownership and transfer of records
The agreement should explain who owns leasing files, tenant ledgers, bank records, inspection reports, photos, vendor records, digital accounts, access codes, and communication history. Confirm the format and deadline for transfer after termination and whether the manager may retain copies.
Flag unclear or one-sided provisions
- Services are described broadly without measurable duties
- Manager authority is unlimited or poorly defined
- Repair thresholds and emergency rules are unclear
- Vendor affiliations, rebates, or markups are not disclosed
- Reports lack supporting bank and ledger records
- Insurance or indemnity language shifts risk without explanation
- Automatic renewal or termination fees are difficult to identify
- Record-transfer duties have no deadline or usable format
Understand what this review does not decide
This review does not interpret enforceability, create agency authority, decide whether a clause complies with Florida law, determine whether a fee is lawful, evaluate insurance sufficiency, or resolve a dispute. The signed agreement, applicable law, and advice from a Florida attorney and other qualified professionals control.
Questions to ask before signing or assuming an agreement
- Exactly which services are included, optional, or excluded?
- What may the manager sign or approve without owner consent?
- How are rents, deposits, reserves, and owner funds held and reported?
- What are the repair limits and emergency exceptions?
- May the manager use affiliated vendors or add invoice markups?
- Which reports and source records will the owner receive?
- What insurance, indemnity, and liability provisions apply?
- How can either party terminate, and what fees continue afterward?
- How quickly must all property, tenant, financial, and digital records be transferred?
Continue the management review
Next, compare the agreement with the South Florida multifamily guide, the lease-audit checklist, the delinquency review, and the security-deposit ledger guide.
