What Does The Property Management Agreement Create

An important part of the agreement describes the manager`s liability limitations. This section of the property management agreement is also called Hold Harmless Clause. A. Operational budget. At least [number (NUMBER)] days before the start of each [calendar/year, as determined by the owner], the manager establishes and submits to the owner a budget proposal for estimated revenues and expenses for aid, leasing, maintenance, operation and management of the property, including all capital expenditures (the “proposed budget”) for the following year[schedule/tax]; With respect to the proposed budget for the current [schedule/tax] year, the manager reviews and reviews in the [numbers in words (NUMBER) days following the validity date, if necessary, each existing budget or prepares a proposed budget for the property for the current [fiscal calendar/fiscal year] and forwards it to the owner. The owner must approve or reject the proposed budget within 14 days of the administrator submitting the proposed budget to the owner. The Administrator undertakes to make reasonable economic efforts to ensure that the actual costs of operating the property during the period covered by the approved budget do not exceed the amounts set there without reducing the quality of the property`s operation. The administrator executes the approved budget and is authorized to incur expenses and commitments in the approved budget, without further approval from the owner, unless this applies to the restrictions in this section 4. The director is not authorized to incur expenses or to invoke an obligation for a position (or a group of similar positions) that represents five per cent (5%) the amount provided for this or the same group of similar positions beyond that. or more.

C. Refunds. To the extent that it is not paid directly by the operating account, as it allows, the owner must compensate the administrator for all costs and expenses incurred in connection with the manager`s activity under this agreement, including, but not limited to, the following legal costs incurred by the manager on behalf of the owner; (2) all salaries, salaries, taxes, workers` benefits and all other employment-related expenses and expenses by the administrator of any staff responsible for the performance of the manager`s services, provided, however, that these persons spend less time than all the time required to carry out the administrator`s obligations under this contract, the owner is required to reimburse the trustee only the portion of those work-related expenses corresponding to the proportional amount that these persons spend on the services of these persons; and (3) any other overheads of the manager to the extent directly attributable to the property and beyond the normal office overhead.