Employment Contract
Create a customized employment contract for property manager roles. Address Fair Housing compliance, tenant dispute protocols, maintenance oversight, and industry risks.
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Property managers face unique liabilities that a standard employment contract cannot adequately cover. Imagine a property manager you hired receives a maintenance request for a unit built in 1975 but... Read more
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Legal Document
This Employment Contract ("Agreement") is entered into and made effective as of [start_date] (the "Effective Date"), by and between [employer_name] ("Employer") and [employee_name] ("Employee"), collectively referred to herein as the "Parties" and individually as a "Party."
WHEREAS, Employer desires to employ Employee in the capacity of [job_title], and Employee desires to accept such employment, subject to the terms and conditions set forth herein;
WHEREAS, the Parties wish to establish the terms of Employee's employment, including compensation, duties, and obligations, to ensure a clear mutual understanding;
NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
Employer hereby employs Employee in the position of [job_title]. Employee shall perform all duties and responsibilities customarily associated with such position, as well as any additional duties reasonably assigned by Employer from time to time. Employee shall devote their full professional time, attention, and best efforts to the performance of their duties and shall act in the best interests of Employer at all times. Employee shall comply with all policies, procedures, rules, and regulations established by Employer, as may be amended from time to time at Employer's sole discretion.
In consideration of the services rendered by Employee under this Agreement, Employer shall pay Employee a gross annual salary of [salary] (the "Base Salary"), payable on a [pay_frequency] basis in accordance with Employer's standard payroll practices, less all applicable withholdings, deductions, and taxes as required by law. Employer reserves the right to review and adjust Employee's compensation at its discretion, and any such adjustment shall not constitute a new agreement or modification of this Agreement unless set forth in a written amendment signed by both Parties.
Employee may be eligible to participate in any employee benefit plans, programs, and arrangements that Employer makes available to its employees generally, subject to the terms and eligibility requirements of such plans. Such benefits may include, but are not limited to, health insurance, dental and vision coverage, retirement plans, paid time off, and other fringe benefits. Employer reserves the right to modify, amend, or terminate any benefit plan or program at any time, in its sole discretion, with or without notice, subject to applicable law. Nothing in this Agreement shall be construed as a guarantee of any particular benefit.
Employee's primary work location and schedule shall be as set forth in this section, subject to modification by Employer as business needs require.
Employee's employment under this Agreement shall commence on [start_date] (the "Start Date").
This Agreement and Employee's employment may be terminated under the following circumstances:
Employee acknowledges that during the course of employment, Employee will have access to and may acquire knowledge of confidential and proprietary information belonging to Employer, including but not limited to trade secrets, business plans, financial information, customer lists, marketing strategies, product designs, software, technical data, and other information not generally known to the public (collectively, "Confidential Information"). Employee agrees to hold all Confidential Information in strict confidence and not to disclose, publish, or otherwise reveal any Confidential Information to any third party during or after employment, except as required in the performance of Employee's duties or as authorized in writing by Employer. Employee agrees not to use any Confidential Information for Employee's own benefit or for the benefit of any third party. This obligation of confidentiality shall survive the termination of this Agreement and Employee's employment for any reason.
During the term of Employee's employment and for a period of twelve (12) months following the termination of employment for any reason, Employee shall not, directly or indirectly: (a) solicit, recruit, or attempt to induce any employee, contractor, or consultant of Employer to leave Employer's employment or engagement; or (b) solicit, divert, or attempt to divert any customer, client, or business relationship of Employer for the purpose of providing products or services that are competitive with those offered by Employer. Employee acknowledges that this non-solicitation covenant is reasonable in scope and duration and is necessary to protect Employer's legitimate business interests.
Upon termination of employment for any reason, or at any time upon Employer's request, Employee shall immediately return to Employer all property belonging to Employer, including but not limited to keys, access cards, identification badges, laptops, mobile devices, documents, files, records, manuals, software, data (in any form or medium), and any other materials or equipment provided to Employee or created by Employee during the course of employment. Employee shall not retain any copies, duplicates, reproductions, or excerpts of any Employer property or Confidential Information.
This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of [state_law], without regard to its conflict of laws principles. Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or validity thereof, shall be resolved exclusively in the state or federal courts located in the State of [state_law], and each Party hereby consents to the personal jurisdiction of such courts.
This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written. No amendment or modification of this Agreement shall be valid or binding unless set forth in writing and signed by both Parties. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. The failure of either Party to enforce any provision of this Agreement shall not constitute a waiver of that Party's right to enforce that provision or any other provision in the future. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. The headings in this Agreement are for convenience only and shall not affect the interpretation of any provision.
Employee warrants that they have received training on and will strictly adhere to the Fair Housing Act administered by the U.S. Department of Housing and Urban Development (HUD), which prohibits discrimination in all housing-related activities including tenant screening, lease enforcement, and advertising based on race, color, national origin, religion, sex, familial status, or disability. Employee further agrees to implement reasonable accommodations as required by the Americans with Disabilities Act (ADA) enforced by the U.S. Department of Justice. Any violation of these obligations, including failure to document accommodation requests or discriminatory statements to tenants, shall constitute immediate grounds for termination for cause. Employee shall indemnify Employer against any HUD complaints, DOJ investigations, or resulting fines or judgments arising from Employee's actions or omissions while managing Employer's rental properties. This warranty survives termination of employment.
In accordance with the Residential Lead-Based Paint Hazard Reduction Act of 1992 enforced by the U.S. Environmental Protection Agency (EPA), Employee agrees to provide all required disclosures regarding known lead-based paint hazards for any properties constructed prior to 1978. Employee shall maintain written records of all disclosures, conduct regular habitability inspections to ensure compliance with state landlord-tenant laws, and promptly address maintenance requests that could impact health or safety. Failure to maintain such records or to disclose known hazards may result in personal liability for Employee and shall be considered a material breach of this agreement. Employee shall not authorize any renovation or repair that disturbs paint without following EPA work practice standards. Employer relies on Employee's diligent performance of these duties to avoid costly tenant claims related to habitability violations or undisclosed environmental hazards.
Employee shall perform and document detailed move-in and move-out property inspections using standardized checklists to support accurate handling of security deposits as required by applicable state landlord-tenant laws. Employee agrees to retain photographs, inspection reports, and tenant acknowledgments for a minimum of three years. Any disputes regarding deductions from security deposits shall be managed by Employee in accordance with state statutes governing timelines and allowable charges. Employee acknowledges that inaccurate or incomplete records may expose Employer to claims for wrongful withholding of deposits. This obligation is essential given the frequency of security deposit litigation in the property management industry. Breach of these record-keeping and procedural requirements shall be grounds for disciplinary action up to and including termination.
Employee represents that they hold and will maintain throughout the term of employment any required Real Estate Broker License or Property Management License mandated by the employee's state of operation, as well as a current general business license where applicable. Employee shall immediately notify Employer of any pending complaints, investigations, or license suspensions filed with state real estate commissions or licensing boards. Employee covenants to stay current with all continuing education requirements related to fair housing, lead paint, and landlord-tenant regulations. Failure to maintain active licensure or to disclose regulatory actions shall constitute a material breach of this employment contract for property manager and may result in immediate termination without severance. This clause is designed to protect Employer from vicarious liability arising from unlicensed or non-compliant property management activities.
[on call schedule]
[performance metrics]
IN WITNESS WHEREOF, the Parties have executed this Employment Contract as of the date first written above, intending to be legally bound hereby.
Employer
Name: Employer
Date: ___________________
Employee
Name: Employee
Date: ___________________
Property managers face unique liabilities that a standard employment contract cannot adequately cover. Imagine a property manager you hired receives a maintenance request for a unit built in 1975 but fails to provide the required lead paint disclosure to a new tenant, triggering an EPA violation and a costly lawsuit from the family claiming health issues for their children. Or consider a scenario where your manager mishandles a security deposit dispute during an eviction proceeding, leading to a tenant claim for wrongful withholding that drags your company into court. Under the Fair Housing Act enforced by HUD, property managers must avoid any perception of discrimination in tenant screening, lease renewals, or handling of reasonable accommodation requests for disabilities per the Americans with Disabilities Act. State landlord-tenant laws further complicate matters with strict rules on habitability, eviction timelines, and vacancy rate management. An employment contract for property manager specifically tailored to these realities outlines precise duties like conducting regular property inspections, maintaining detailed move-in/move-out records to mitigate security deposit claims, ensuring compliance with HOA regulations, and training on fair housing policies. It reduces your exposure to habitability violations, tenant disputes, and licensing issues by clearly defining performance expectations, reporting protocols for maintenance requests, and post-termination restrictions on soliciting your rental clients. Without this document, misunderstandings over lease agreement terms or repair responsibilities can escalate quickly, costing thousands in legal fees and damaging your reputation in a competitive rental market. This contract gives you the clarity and protection needed to run a compliant, efficient property management business.
Beyond the standard employment contract sections, this template adds fields specific to Property Manager:
An employment contract establishes a formal employment relationship between an employer and an employee, outlining the terms and conditions of employment, rights, obligations, and responsibilities of both parties. It provides legal protection and clarity, ensuring compliance with employment laws and minimizing the risk of misunderstandings and disputes.
Tenant Disputes
Utilize clear lease agreements that outline tenant responsibilities and dispute resolution processes.
Habitability Violations
Include clauses in leases that specify maintenance processes and consistently conduct property inspections to ensure compliance.
Security Deposit Disputes
Maintain detailed records of property conditions at move-in and move-out, and specify deposit handling procedures in lease agreements.
Violation of Fair Housing Laws
Implement and train staff on fair housing policies, and include non-discrimination clauses in rental agreements.
For this employment contract to be legally valid:
Common mistakes to avoid:
Fair Housing Act
The Fair Housing Act prohibits discrimination in housing-related activities, including rentals by property managers, based on race, color, national origin, religion, sex, familial status, or disability.
Enforced by U.S. Department of Housing and Urban Development (HUD)
Americans with Disabilities Act (ADA)
This law requires property managers to ensure that their properties are accessible to individuals with disabilities, particularly in public and commercial buildings.
Enforced by U.S. Department of Justice (DOJ)
Residential Lead-Based Paint Hazard Reduction Act of 1992
This regulation requires property managers to disclose any known lead paint hazards in properties built before 1978.
Enforced by U.S. Environmental Protection Agency (EPA)
State Landlord-Tenant Laws
These are state-specific laws that govern the relationship between landlords, property managers, and tenants, including lease terms, eviction procedures, and security deposits.
Enforced by State Government (varies by state)
Recommended coverage: Professional Liability Insurance (Errors & Omissions) · General Liability Insurance · Property Insurance · Tenant Discrimination Insurance · Workers' Compensation Insurance
Standard employment agreements overlook industry-specific risks that property managers encounter daily. Under the Fair Housing Act (administered by HUD), managers cannot discriminate based on protected classes during tenant screening or lease enforcement, while the Residential Lead-Based Paint Hazard Reduction Act of 1992 requires disclosure of known lead hazards in pre-1978 buildings. Including these in the contract ensures your property manager understands mandatory compliance steps, reducing the likelihood of violations that could result in fines, lawsuits, or license revocation. This protects both parties and demonstrates due diligence when habitability or security deposit disputes arise.
The contract must explicitly list responsibilities such as processing maintenance requests within 24-48 hours, coordinating repairs to meet state habitability standards, managing eviction procedures in compliance with local landlord-tenant laws, tracking vacancy rates, and enforcing lease agreement terms. Clearly defining these prevents disputes over who handles HOA compliance, security deposit inspections, or reasonable accommodations under the ADA. Without specifics, performance issues can lead to wrongful termination claims or operational failures that expose the employer to tenant lawsuits.
Many states require a Real Estate Broker License or Property Management License (such as in Nevada or Montana) for those handling leases, tenant disputes, or significant transactions. The contract should require the employee to maintain active licensure, disclose any complaints, and adhere to general business licensing rules. It can also mandate ongoing training on EPA lead paint rules, Fair Housing Act requirements, and state-specific eviction protocols. This clause helps employers avoid vicarious liability when managers violate regulations during day-to-day operations like handling security deposit claims or fair housing inquiries.
Yes, carefully drafted non-solicitation clauses are common and enforceable in most states when reasonable in scope and duration. The contract can prohibit a departing property manager from contacting your current tenants or HOA clients to divert business for a defined period. This protects your rental portfolio and client relationships built around lease management, maintenance oversight, and vacancy reduction strategies. Always tailor language to comply with state law, as overly broad restrictions may be invalidated by courts.
State laws affect what must be in this document. Pick your jurisdiction.
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