PROPERTY MANAGEMENT AGREEMENT

(State of Wisconsin)

[// GUIDANCE: This comprehensive template is drafted for residential and/or commercial property located in Wisconsin. It is intentionally broad so it can be scaled up or down. Delete any sections that are unnecessary for a particular engagement and complete all bracketed placeholders before execution.]

TABLE OF CONTENTS

1. Document Header
2. Definitions
3. Appointment & Scope of Authority
4. Manager’s Duties
5. Owner’s Duties
6. Term; Termination
7. Compensation
8. Trust Account; Accounting & Records
9. Insurance & Risk Allocation
10. Representations & Warranties
11. Covenants
12. Defaults & Remedies
13. Indemnification; Limitation of Liability
14. Dispute Resolution
15. General Provisions
16. Execution

1. DOCUMENT HEADER

This Property Management Agreement (this “Agreement”) is entered into as of [EFFECTIVE DATE] (“Effective Date”) by and between:

1. [OWNER LEGAL NAME], a [STATE OF FORMATION] [ENTITY TYPE], with its principal place of business at [ADDRESS] (“Owner”); and
2. [MANAGER LEGAL NAME], a Wisconsin-licensed real estate broker (License No. [LICENSE #]) with its principal place of business at [ADDRESS] (“Manager”).

Owner and Manager are sometimes referred to individually as a “Party” and collectively as the “Parties.”

WHEREAS, Owner is the fee simple owner of the real property, together with all improvements thereon, commonly known as [PROPERTY NAME / ADDRESS / LEGAL DESCRIPTION] and more particularly described in Exhibit A (the “Property”); and

WHEREAS, Manager represents that it is duly licensed and qualified under Wis. Stat. ch. 452 to engage in real estate practice and to provide property management services, including leasing, rent collection, and maintenance coordination; and

WHEREAS, Owner desires to appoint Manager, and Manager desires to accept such appointment, to manage the Property under the terms and conditions herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein, the Parties agree as follows:

2. DEFINITIONS

For purposes of this Agreement, the following terms have the meanings set forth below. Defined terms appear in initial capital letters throughout the Agreement.

“Affiliate” means, with respect to a specified entity, any entity controlling, controlled by, or under common control with such entity.

“Applicable Law” means all federal, state, and local statutes, regulations, ordinances, codes, orders, and common-law principles governing the Property or the services contemplated by this Agreement, including without limitation Wis. Stat. ch. 452 and all administrative rules promulgated thereunder.

“Gross Receipts” means all sums actually collected by Manager on behalf of Owner with respect to the Property, excluding (a) security deposits (until applied), (b) insurance proceeds, (c) condemnation awards, and (d) any funds advanced by Owner.

“Management Fee” means the compensation payable to Manager pursuant to Section 7.

“Operating Account” has the meaning given in Section 8.1.

“Property Budget” means the annual operating budget for the Property prepared under Section 4.3, as may be amended by mutual written agreement.

[Add additional definitions as needed.]

3. APPOINTMENT & SCOPE OF AUTHORITY

3.1 Appointment. Owner hereby appoints Manager as the exclusive agent to lease, operate, and manage the Property, and Manager hereby accepts such appointment, subject to the terms of this Agreement.

3.2 Standard of Care. Manager shall perform its duties (a) in a commercially reasonable manner, (b) in good faith, (c) in accordance with Applicable Law, and (d) in accordance with the standards prevailing in the professional property management industry in Wisconsin.

3.3 Delegation. Manager may delegate or subcontract portions of its duties to qualified vendors or contractors, provided that (a) Manager remains fully responsible for the performance of such duties, and (b) any cost arising from such delegation is consistent with the Property Budget or otherwise approved by Owner in writing.

3.4 Limitations on Authority. Manager shall not, without Owner’s prior written consent:
a. Sell, exchange, or convey any interest in the Property;
b. Create any lien or encumbrance on the Property, except for emergency repairs not exceeding [DOLLAR AMOUNT];
c. Execute any lease with a term longer than [____] months or containing concessions exceeding market norms; or
d. Initiate litigation, other than actions for rent collection or eviction, unless Owner approves in writing.

4. MANAGER’S DUTIES

[// GUIDANCE: Subsections below can be expanded or collapsed to fit residential, commercial, or mixed-use contexts.]

4.1 Leasing & Tenant Relations.
a. Market available units, comply with all fair-housing laws, and screen prospective tenants.
b. Negotiate, execute, renew, or terminate leases on Owner’s behalf using forms approved by Owner.
c. Serve notices and institute eviction or unlawful detainer actions as necessary.

4.2 Rent Collection & Enforcement. Collect all rents and other charges when due and enforce lease terms. Manager shall deliver to Owner, by the 15th day of each month, a rent roll and delinquency report.

4.3 Budget & Reporting. On or before [DATE] of each fiscal year, Manager shall submit to Owner a proposed Property Budget covering anticipated income and expenses for the ensuing year. Owner shall approve or provide comments within [____] days; absent written objection, the Budget is deemed approved.

4.4 Repairs & Maintenance.
a. Maintain the Property in good order and promptly address maintenance requests.
b. Obtain at least [NUMBER] competitive bids for any single expenditure exceeding [DOLLAR AMOUNT] unless emergency conditions exist.
c. Comply with all health, safety, and environmental requirements.

4.5 Compliance & Licensing. Maintain all licenses required under Wis. Stat. § 452.03 and supervise licensees and unlicensed assistants in accordance with Wisconsin Real Estate Examining Board (“REEB”) rules.

4.6 Disclosure Obligations. Provide all agency disclosures and any other notices required under Wis. Stat. § 452.135, ch. ATCP 134 (residential rental practices), and any applicable lead-based-paint, radon, or mold disclosures.

4.7 Records Retention. Keep and preserve for not less than six (6) years full and accurate records of receipts, disbursements, leases, correspondence, and any other documents relating to the Property.

5. OWNER’S DUTIES

5.1 Information & Cooperation. Provide Manager with all documents, records, and authorizations reasonably necessary for Manager to perform its obligations.

5.2 Funding. Within five (5) business days after request, advance sufficient funds to Manager to meet the Property’s operating expenses and approved capital expenditures.

5.3 Insurance. Maintain, at Owner’s sole cost, insurance as set forth in Section 9.2.

5.4 Legal Compliance. Timely perform all duties imposed upon Owner by Applicable Law, including payment of mortgage obligations, real estate taxes, and assessments.

6. TERM; TERMINATION

6.1 Initial Term. The initial term of this Agreement shall commence on the Effective Date and continue for [ONE (1) / TWO (2)] year(s) (the “Initial Term”).

6.2 Renewal. Upon expiration of the Initial Term, this Agreement shall automatically renew for successive one-year periods unless either Party provides written notice of non-renewal at least [30/60] days before the end of the then-current term.

6.3 Termination for Cause. Either Party may terminate this Agreement upon written notice if the other Party materially breaches any obligation and fails to cure such breach within [15] days after receipt of written notice.

6.4 Termination Without Cause. Owner may terminate this Agreement without cause upon [30] days’ written notice, provided Owner pays Manager a termination fee equal to [ONE (1)] month’s Management Fee to compensate Manager for its set-up and wind-down costs.

6.5 Effect of Termination.
a. Manager shall promptly deliver to Owner all Property funds, tenant files, leases, and records.
b. Sections 8, 10, 12, 13, 14, and any other provisions that by their nature should survive shall survive termination.

7. COMPENSATION

7.1 Management Fee. Owner shall pay Manager monthly, in arrears, a Management Fee equal to [__ %] of Gross Receipts (the “Management Fee”).

7.2 Leasing Fee. For each new lease executed, Owner shall pay Manager a leasing fee of [__ %] of the first month’s gross rent, and [__ %] for each renewal exceeding [___] months.

7.3 Maintenance Mark-Up. For any maintenance or capital project exceeding [DOLLAR AMOUNT], Manager may charge an administrative fee of [__ %] of the total invoice.

7.4 Expense Reimbursement. Owner shall reimburse Manager for all reasonable, out-of-pocket expenses actually incurred in the performance of this Agreement and consistent with the Property Budget.

7.5 Timing & Method of Payment. Manager shall deduct earned fees and authorized reimbursements from the Operating Account contemporaneously with the monthly accounting delivered to Owner.

8. TRUST ACCOUNT; ACCOUNTING & RECORDS

8.1 Trust Account. Manager shall deposit all tenant security deposits and all other trust funds in a separate interest-bearing real estate trust account (the “Trust Account”) maintained at a Wisconsin-chartered or federally insured depository institution, in compliance with Wis. Stat. § 452.13 and applicable REEB rules.

8.2 Operating Account. Manager shall establish a non-interest-bearing operating account (the “Operating Account”) for day-to-day Property income and expenses. Owner shall be listed as owner of the funds, and Manager shall act solely as fiduciary.

8.3 Monthly Statements. On or before the fifteenth (15th) day of each month, Manager shall provide Owner with a detailed income and expense statement, check register, and bank reconciliation for the preceding month.

8.4 Audit Rights. Owner or its designated representatives may audit Manager’s books and records relating to the Property upon at least five (5) business days’ notice, during normal business hours, not more than twice per calendar year, at Owner’s expense.

9. INSURANCE & RISK ALLOCATION

9.1 Manager’s Insurance. Manager shall maintain at its own expense:
a. Commercial General Liability insurance with limits of not less than [$1,000,000] per occurrence and [$2,000,000] aggregate;
b. Errors & Omissions (professional liability) coverage of not less than [$1,000,000] per claim; and
c. Workers’ Compensation insurance as required by Wisconsin law.

9.2 Owner’s Insurance. Owner shall maintain, at a minimum:
a. Property insurance on a “special form” basis covering the full replacement cost of the Property; and
b. Landlord’s liability insurance with limits of not less than [$1,000,000] per occurrence.

9.3 Waiver of Subrogation. To the extent permitted by their respective policies, each Party waives subrogation rights against the other.

10. REPRESENTATIONS & WARRANTIES

10.1 Mutual. Each Party represents and warrants that (a) it has full power and authority to enter into and perform this Agreement, and (b) the execution and performance of this Agreement do not violate any other agreement to which it is a party.

10.2 Manager. Manager further represents and warrants that:
a. It holds an active Wisconsin real estate broker’s license in good standing under Wis. Stat. § 452.03;
b. No disciplinary action is pending against it before the REEB; and
c. It will maintain all required licenses and comply with all trust-account obligations under Wis. Stat. § 452.13 during the term of this Agreement.

10.3 Owner. Owner further represents and warrants that:
a. Owner has good and marketable title to the Property;
b. The Property is not subject to any unresolved governmental order or pending condemnation; and
c. Owner will timely disclose to Manager any known environmental or structural conditions that could affect tenant health or safety.

10.4 Survival. The representations and warranties in this Section 10 survive termination of this Agreement for a period of one (1) year.

11. COVENANTS

11.1 Compliance with Law. Each Party shall comply with all Applicable Law. Manager shall promptly notify Owner of any notice of violation or non-compliance received with respect to the Property.

11.2 Confidentiality. Neither Party shall disclose the other Party’s confidential information except to the extent necessary to perform this Agreement or as required by law.

11.3 Non-Solicitation. During the term and for one (1) year thereafter, Owner shall not, without Manager’s written consent, directly employ any employee of Manager who performed services on the Property.

12. DEFAULTS & REMEDIES

12.1 Events of Default. The following constitute a default (“Event of Default”):
a. A material breach of this Agreement not cured within the applicable notice and cure period under Section 6.3;
b. A violation of trust-account obligations by Manager; or
c. Bankruptcy or insolvency of either Party.

12.2 Owner Remedies. Upon Manager Event of Default, Owner may (i) terminate this Agreement immediately, (ii) recover direct damages, and (iii) seek injunctive relief without posting bond to prevent unauthorized use of funds or confidential information.

12.3 Manager Remedies. Upon Owner Event of Default, Manager may (i) suspend performance, (ii) terminate this Agreement, and (iii) recover any unpaid Management Fee and reimbursable expenses.

12.4 Attorney Fees. The prevailing Party in any dispute arising out of or relating to this Agreement is entitled to reasonable attorney fees and costs.

13. INDEMNIFICATION; LIMITATION OF LIABILITY

13.1 Manager Indemnification of Owner. Manager shall defend, indemnify, and hold Owner, its Affiliates, and their respective officers, directors, members, managers, employees, and agents (collectively, “Owner Indemnitees”) harmless from and against any and all claims, damages, liabilities, losses, and expenses (including reasonable attorney fees) (“Claims”) to the extent arising out of (a) Manager’s gross negligence, willful misconduct, or breach of this Agreement, or (b) Manager’s violation of Applicable Law.

13.2 Exclusions. Manager’s indemnification obligation shall not extend to Claims caused by (i) structural defects or pre-existing environmental conditions at the Property, or (ii) acts or omissions of Owner or Owner’s other contractors.

13.3 Limitation of Liability. NOTWITHSTANDING ANYTHING TO THE CONTRARY, MANAGER’S TOTAL LIABILITY TO OWNER ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT SHALL NOT EXCEED AN AMOUNT EQUAL TO THE MANAGEMENT FEES ACTUALLY PAID TO MANAGER DURING THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO THE CLAIM. THIS LIMITATION DOES NOT APPLY TO (a) CLAIMS COVERED BY INSURANCE REQUIRED UNDER SECTION 9, OR (b) MANAGER’S FRAUD, GROSS NEGLIGENCE, OR WILLFUL MISCONDUCT.

14. DISPUTE RESOLUTION

14.1 Governing Law. This Agreement is governed by and construed in accordance with the substantive laws of the State of Wisconsin, without regard to its conflict-of-law principles.

14.2 Forum Selection. The state courts of the County in which the Property is located (and, if jurisdiction exists, the federal courts sitting in such County) have exclusive jurisdiction over any action or proceeding arising out of or relating to this Agreement, subject to Section 14.3.

14.3 Arbitration (Optional). If [CHECK BOX: ☐ ARBITRATION REQUIRED / ☐ ARBITRATION NOT REQUIRED] is marked “Arbitration Required,” any dispute shall be resolved by binding arbitration administered by [AAA / JAMS] under its [Commercial / Real Estate] Arbitration Rules, and judgment on the award may be entered in any court of competent jurisdiction.

14.4 Jury Trial Waiver (Optional). IF PERMITTED BY LAW AND [CHECK BOX: ☐ WAIVER INCLUDED / ☐ WAIVER OMITTED] IS MARKED “Waiver Included,” EACH PARTY WAIVES ITS RIGHT TO A TRIAL BY JURY.

14.5 Injunctive Relief. Nothing in this Section shall limit either Party’s right to seek provisional or injunctive relief in any court of competent jurisdiction to prevent immediate and irreparable harm.

15. GENERAL PROVISIONS

15.1 Amendment & Waiver. No amendment or waiver of any provision of this Agreement is binding unless in writing and signed by both Parties. A waiver on one occasion is not a waiver on any subsequent occasion.

15.2 Assignment. Neither Party may assign this Agreement without the prior written consent of the other, except that Owner may assign to any purchaser of the Property and Manager may assign to an Affiliate in connection with a reorganization, provided the assigning Party remains liable.

15.3 Successors & Assigns. This Agreement binds and benefits the Parties and their respective permitted successors and assigns.

15.4 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions remain in full force, and the invalid provision shall be reformed to the minimum extent necessary to effect the Parties’ original intent.

15.5 Entire Agreement. This Agreement (including exhibits) constitutes the entire agreement between the Parties and supersedes all prior agreements or understandings, written or oral, relating to its subject matter.

15.6 Counterparts; Electronic Signatures. This Agreement may be executed in one or more counterparts, each of which is deemed an original, and all of which together constitute one instrument. Signatures delivered by electronic means (e.g., PDF, DocuSign) are effective as originals.

15.7 Notice. All notices must be in writing and delivered (a) in person, (b) by certified mail (return receipt requested), (c) by nationally recognized overnight courier, or (d) by email with confirmed receipt, in each case to the addresses set forth below (or as updated by notice). Notice is deemed given on actual delivery or refusal.

16. EXECUTION

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.

[// GUIDANCE: If notarization or witness signatures are advisable for recordability, add appropriate jurats or witness lines below.]

Exhibit A

Legal Description of the Property

[Insert or attach full legal description.]

Exhibit B

Current Rent Roll & Security Deposit Schedule

[Insert schedule.]

Exhibit C

Annual Property Budget

[Insert budget.]

[// GUIDANCE: Review carefully to confirm compliance with any additional local ordinances (e.g., City of Milwaukee Residential Rental regulations) and to integrate any owner-specific policies, house rules, or environmental disclosures.]