Property Manager Landlord Agreement-Florida

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Property Manager Landlord Agreement-Florida

Anitha BalaPro Member
Member since 2024 · 19 posts · 4 votes

I have had a PM manage my property over the last couple of years and now looking to switch. Based on the lessons learned as I am reviewing the property manager landlord agreement it seems very much lopsided in favor of the PM..I would love to hear from landlords who have been able to make some modifications to these agreements such that landlord also has more say in their own property.

I am thinking of hiring an attorney to review clauses I believe are totally not in my favor to see how it can be modified even if it would be added to an addendum.

any thoughts advice would be much appreciated

thanks

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  • Judith Jonathan
    Investor · Remotely · Member since 2026 · 29 posts · 14 votes
    3d

    Hiring an attorney to review it is a good move, and it helps to walk in with a short list. Landlords often ask to change the termination terms and notice period, who approves repairs above a set dollar amount, the fees for leasing and renewals, and whether you get monthly statements and access to your own tenant files.

    When you talk to the new manager, ask for a markup or an addendum before you sign, since many will agree if you raise it up front. I'm not a lawyer, so have your attorney confirm what's allowed in your state. Which clause bothers you most?

    0Reply
    • Anitha BalaPro Member
      OP
      Member since 2024 · 19 posts · 4 votes
      3d

      thanks Judith. have you had experience adding an addendum to your contracts...

      0Reply
  • John RacinePro Member
    Rental Property Investor · Casselberry, FL · Member since 2008 · 186 posts · 99 votes
    3d

    @Anitha Bala Disclosure: I run a co-hosting business managing STRs for other owners, so I've been on both sides of these agreements.

    When I owned long-term rentals, I had property managers handle some of them. A lot of their agreements read like cover-yourself language. I get why managers want some of that in there, since they're the ones on the hook when something goes wrong. Now that I'm on the manager side with my co-hosting, I want my owners to feel like they have control, and with the way we set things up, they do. It's a delicate balance, and the agreement is where that balance gets set.

    I agree with Judith on having an attorney review it. Here's what I'd want spelled out, in an addendum if needed:

    Who touches the money. In Florida, a manager who collects and holds your rents is doing licensed property management. Ask where the rent and security deposits are held, when you get paid, and what statement you get each month.

    Your guidelines in writing. A good manager works within the owner's guidelines. If you have screening standards, a pet policy, a minimum rent or a repair approval limit, put it in the agreement. Then it's a requirement, not a preference.

    Termination. The notice period, any fee to leave, and what happens to a current tenant's lease, deposit and records when you switch managers.

    If you convert to STR or MTR. You mentioned in your Snowbirds thread that you're looking at converting the Auburndale house. If this manager would run it that way, also spell out who owns the listing and the platform account. When I co-host, I work inside the owner's Airbnb account, so if an owner isn't happy, the listing, reviews and booking history stay theirs. And make sure you can see the pricing settings, even if you're not the one setting the rates.

    I'm not an attorney, so run the final language past yours.

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  • Jim Johnson
    Real Estate Agent · Memphis · Member since 2026 · 621 posts · 358 votes
    3d

    Having a Florida real estate attorney review it before signing is worth considering. PM agreements aren't necessarily set in stone, and it's better to work through the terms now than deal with surprises later.

    A few things I'd pay close attention to:

    • Maintenance approvals: How much can the PM spend without your approval?

    • Termination terms: What does it cost to leave, and how much notice is required?

    • Repair markups: Are there additional fees on top of vendor invoices?

    • Owner access: Can you easily get inspection reports, invoices, and property records?

    Those are the areas where I'd want clear expectations in writing, whether that's in the agreement itself or an addendum.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 13k+ posts · 9k+ votes
    3d

    Most PMC contracts are deliberately vague - which allows the PMC to do whatever they want and the owner arguing after the fact.

    Unfortunately, over the years we've had owners tell us our contract is too long and they just want something easy to understand!

    Have you seen how many pages a purchase contract is in like 6-type font?

    Your challenge will be finding an attorney:

    • Familiar with contracts

    • Experienced in real estate

    • Who's reviewed several of property management contracts already

    What do you think your chances are of finding such an attorney?

    • Otherwise, you'll be paying an attorney to learn on the fly at your expense😡

    [email protected]248-209-6824
    Logical Property Management4.9462 Reviews
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    0Reply
    • Anitha BalaPro Member
      OP
      Member since 2024 · 19 posts · 4 votes
      17h

      I am in the process of finding that out..

      0Reply
  • Melissa HaworthBusiness Member
    Real Estate Agent · The Panhandle | The Emerald Coast | Panama City Beach | Destin · Member since 2017 · 291 posts · 108 votes
    18h

    Hi Anitha, getting an attorney to look at it is a good call. One thing I'd add: before you sign with the new manager, ask them straight up which clauses they're willing to change. A good one will usually work with you on the termination fee and the repair approval limit. I'd also look closely at any fee on lease renewals, because that one sneaks up on people. And if you end up running the Auburndale house as a furnished mid-term like you mentioned in your other thread, make sure the agreement actually covers that. A lot of long-term PM contracts don't. Happy to share what owners I talk to here in the Panhandle usually push back on if it helps.

    [email protected]469-658-2869
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  • Anitha BalaPro Member
    OP
    Member since 2024 · 19 posts · 4 votes
    17h

    thanks Melissa. Yes I am going thru Identifying all my questions and then planning to ask them. In the interest of time and research needed I may just do LTR now and then spend the year researching on MTR.

    I am mostly stuck on how little they are willing to share about the future tenant and yet they want to be discharged off all liabilities..

    0Reply
  • Anitha BalaPro Member
    OP
    Member since 2024 · 19 posts · 4 votes
    16h

    SAVE HARMLESS AND INDEMNITY-HOMEOWNERS POLICY: OWNER further agrees to save the MANAGER, MANAGER’s owners, directors, officers, agents, independent contractors, and employees, forever harmless from all liability, damage suits, or claims in connection with the management of said property, except in the case of gross negligence or illegal act by MANAGER, and from all liability for injuries to any person or property suffered or sustained by any person whomsoever, and to carry, at OWNER’s own expense, public liability insurance (homeowner’s insurance) in sufficient amounts to protect the interest of parties hereto, which policies shall so be written to protect MANAGER in the same manner and to the same extent as OWNER. Owner shall have liability insurance of not less than $100,000/$300,000 per occurrence. OWNER agrees to indemnify MANAGER for any damages suffered as a result of any lapse in or failure by OWNER to maintain insurance coverage.

    Is this fairly common you see in PM agreements..

    0Reply
  • Owen RosenBusiness Member
    Professional · Clinton Township, MI · Member since 2015 · 720 posts · 270 votes
    14h

    Quick take from the insurance side: yes, that clause is very common. Since it's a rental, make sure you have a landlord (dwelling) policy rather than a homeowners policy, and ask your agent to add the manager as an additional insured. Many owners carry more than $100K/$300K liability or add an umbrella, since a single tenant or guest injury lawsuit can easily exceed those limits and your personal assets could be on the line.

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  • Anitha BalaPro Member
    OP
    Member since 2024 · 19 posts · 4 votes
    13h

    Why would we need to add the PM if. they have not requested to be added. thanks

    0Reply
  • David D.
    Property Manager · Dallas, TX · Member since 2019 · 29 posts · 4 votes
    48m

    Anitha, the clauses I'd look at first when you switch: how you can end it (30 days' notice with no termination fee is a fair ask), who owns the listing and its reviews if you go short term, a cap on repairs they can approve without you, and monthly statements showing gross, fees and net. If a manager won't put those in writing, keep looking.

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