Property and Facility Management Terms & Conditions

Yes, provided the terms and conditions contain an explicit agency clause granting this power of attorney. This clause must specify the exact financial limits and types of vendor agreements the manager is authorized to sign on the owner's behalf. Without this written authorization, the owner must sign every individual contractor agreement.

An emergency threshold is a pre-authorized dollar amount the manager can spend to mitigate immediate threats to life, safety, or property integrity without seeking owner approval. You should set this limit based on local emergency dispatch costs, typically ranging between $500 and $1,500 depending on the property's size. Any non-emergency expenditure above this agreed amount requires formal written or digital approval from the owner.

The property owner is primarily liable for structural failures, while the management company is only liable if the injury resulted directly from their proven negligence in performing contracted duties. Your terms must require the property owner to maintain comprehensive general liability insurance that names your management company as an additionally insured party. This protects your business from defending lawsuits related to accidents outside of your direct control.

The agreement must outline a strict timeline, usually fifteen to thirty days, for transferring keys, security codes, maintenance logs, and financial records back to the owner. It should also state that any outstanding management fees or contractor reimbursements must be settled in full before the final transfer of digital accounts and physical assets takes place. This prevents owners from withholding payment once they regain full control of their property.