WHAT IS A COMMERCIAL PROPERTY MANAGEMENT AGREEMENT? 

A Commercial Property Management Agreement is a contract in which an owner of property engages the services of a property management company or real estate agent to provide oversight and management of the owner’s commercial property.

WHEN DO YOU NEED A COMMERCIAL PROPERTY MANAGEMENT AGREEMENT?

A Commercial Property Management Agreement is needed when the owner is incapable or unwilling to assume the responsibility of managing what may very well be several parcels of commercial real estate. Often the owner lives in another state or country and cannot undertake the responsibilities inherent in managing commercial property.

Commercial property management companies are needed because they have up to date knowledge regarding the commercial rental market in the area and they are aware of the laws that may impact the rental of commercial property.

WHAT IS INCLUDED IN A COMMERCIAL PROPERTY MANAGEMENT AGREEMENT?

A Commercial Property Management Agreement should include the following:

• Proxy forms for those shareholders that will not attend the meeting but wish to have their votes acknowledged and counted. Their votes can be assigned to an agent who will vote their shares if they desire.

• The names and addresses of the properties and the parties.

• The amount of property management fees and manner and time of payment.

• Detailed explanations regarding the maintenance and repair of the property.

• A statement of risk assessment of the commercial rental property.

• Recitals regarding renewal of agreement termination and breach of the agreement.

• The payment of fees and the frequency with which they are paid for the retainment of the commercial property management company’s services.