ADRE LAW BOOK 2025

ARTICLE 3.1 - PROPERTY MANAGEMENT

32-2171. Definitions In this article, unless the context otherwise requires:

1. “Property management firm” means any corporation, partnership or limited liability company licensed pursuant to section 32-2125, subsection A or a designated broker that by written agree ment, manages rental property or properties for compensation. 2. “Rental agreement” means a lease or leasing agreement. 32-2172. Scope of article This article supersedes all provisions of law and rules that relate to property management. 32-2173. Property management agreements; contents, termination A. A property management firm shall write property management agreements in clear, unambigu ous language, and the property management agreements: 1. Shall: (a) State all material terms and conditions of the property management firm’s ser vices, obligations, duties and responsibilities to the property owner. (b) Be signed by the property owner or his agent and the property management firm’s designated broker or the broker’s authorized real estate licensee. (c) Specify a beginning and an ending date. (d) Contain cancellation provisions that are agreeable to both parties. (e) Provide for the manner of disposition of all monies collected by the property management firm, including any tenant deposits. (f) Specify the type and frequency of status reports to the owner. (g) State the amount and purpose of monies the property management firm holds as an operating reserve for emergency and other purposes. (h) Provide for the disposition and allocation of interest earned on trust account monies. (i) State the terms and conditions of compensation the property owner pays for services pursuant to the property management agreement. (j) Not be assigned to another licensee or licensed entity without the express written consent of the property owner. 2. May: (a) Contain an automatic renewal provision, if the property management firm sends the owner a reminder notice at least thirty days before the renewal date. The notice does not negate any other cancellation term otherwise agreed to. (b) Provide for reasonable liquidated damages or cancellation fees for early termi nation of the agreement. (c) Allow the property management firm’s broker to authorize a licensed or unli censed person in the direct employment of the broker, pursuant to section 32-2174,

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