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PLAYBOOK TEMPLATES

Property Management Agreement

A Property Management Agreement sets the terms under which an agent manages real estate on behalf of an owner. This playbook outlines duties of care, indemnification, and compensation structures.

Maintenance and Repairs

Why This Matters: Imbalanced maintenance obligations can lead to excessive unexpected expenses or property deterioration. Clarity prevents disputes over cost allocation and scope of work.

Negotiation strategy

If you're the Manager:

Negotiate to limit responsibility to non-structural repairs and ensure timely response from the landlord for structural issues.

If you're the Landlord:

Ensure tenant is responsible for interior maintenance while retaining responsibility for structural components to maintain property value.

Essential elements

1

Tenant's Maintenance Obligations

Interior upkeep and non-structural repairs.
2

Landlord's Maintenance Obligations

Structural repairs and capital expenditures.
3

Timely Repairs

Prompt response to repair needs.

Action framework

ACCEPT

Propose edits if tenant's obligations extend to structural repairs.

EDIT

Reject clauses that unfairly burden tenant with capital expenditures.

ADD

Add language specifying landlord's responsibility for structural repairs.

PRO TIP

Ensure clear timelines for repair responsibilities to avoid disputes.

Example clauses

FAVORABLE

Balanced Maintenance Clause

"The Tenant shall maintain the interior of the Premises, while the Landlord shall handle all structural and capital repairs."
NEUTRAL

Standard Maintenance Clause

"Both parties shall perform their respective maintenance obligations in a timely manner."
UNFAVORABLE

Unbalanced Maintenance Clause

"The Tenant shall be responsible for all repairs, including structural and capital improvements."

Fallbacks

High-Risk Projects

In high-risk projects, ensure tenant's liability is limited to prevent excessive financial burden.

Short-Term Leases

For short-term leases, negotiate minimal tenant repair obligations to align with lease duration.

Custom Tenant Fit-Outs

If tenant-specific alterations are made, clarify responsibility for related repairs and maintenance.
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