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Walk away with a comprehensive, professional employment contract tailored specifically for property and facility management roles. This document clearly defines job duties, compensation, on-call expectations, and protective legal clauses.
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Hiring a property or facility manager is a major milestone for any real estate investor, property owner, or HOA board. This specialized employment agreement is the foundation of a successful working relationship, clearly outlining the unique boundaries of managing physical real estate. You need this contract the moment you decide to delegate the daily operations, tenant relations, and emergency maintenance of your property to a professional. A stellar agreement does more than just state the salary; it clearly defines complex operational realities like 24/7 on-call responsibilities, emergency decision-making limits, and whether rent-free on-site housing is part of the compensation package. By establishing precise boundaries around property access, tenant communication, and financial handling up front, you protect your valuable real estate assets while giving your manager the clear authority they need to keep your properties running smoothly and profitably.
Write on-site housing directly into the agreement as a condition of employment rather than a standard tenancy. This ensures that the manager's right to occupy the unit terminates immediately when their employment ends, avoiding standard tenant eviction processes. You must also specify who pays for utilities and how the rent credit applies to local minimum wage laws.
Most residential and commercial property owners set a pre-approved emergency maintenance limit between $500 and $1,500. Any non-emergency repairs exceeding this amount must require written or digital authorization from the property owner before work begins. This protects your cash flow while allowing the manager to handle minor, urgent issues quickly.
Property managers must be classified as non-exempt hourly employees eligible for overtime unless they meet strict administrative exemption criteria, which typically requires they manage at least two full-time employees and have independent business discretion. Because most site managers handle routine tasks and tenant inquiries, they generally must be paid hourly and compensated for all on-call hours where they are restricted from personal activities.
Employers cannot hold a property manager personally liable for damage caused by tenants or normal wear and tear of the property. The agreement should instead outline standard operating procedures for tenant screening and property inspections, holding the manager accountable through performance reviews or termination if they fail to follow these protocols.
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