Property management agreements are legally binding contracts that outline the terms and conditions of the management relationship between property owners and property managers. One important clause in these agreements is the „hold harmless” clause. In this article, we`ll discuss what a property management agreement hold harmless clause is and why it`s important.

What is a hold harmless clause?

A hold harmless clause is a provision in a contract that releases one party from liability for any damages or losses that may occur as a result of the other party`s actions. In a property management agreement, the hold harmless clause protects the property manager from being held responsible for any damages or losses resulting from the property owner`s negligence or actions.

For example, if a tenant is injured on the property due to the property owner`s failure to maintain safe conditions, the property management agreement hold harmless clause would protect the property manager from any liability in the matter.

Why is a hold harmless clause important in property management agreements?

Property management involves a range of responsibilities beyond simply collecting rent. Property managers may be responsible for maintenance, repairs, and even legal issues related to the property. The hold harmless clause protects the property manager from being held liable for any damages or losses resulting from these responsibilities.

By including a hold harmless clause in their property management agreement, the property manager can focus solely on their duties without worrying about being held responsible for issues that arise due to the property owner’s negligence or actions.

In addition to protecting the property manager, the hold harmless clause also benefits the property owner. It ensures that the property manager is fully responsible for their actions, and the property owner does not have to worry about being held liable for any damages or losses resulting from the property manager`s actions.

Conclusion

In summary, the hold harmless clause is an essential component in property management agreements. By releasing the property manager from liability for damages or losses resulting from the property owner`s negligence or actions, it allows both parties to focus on their respective responsibilities. As a professional, it`s important to ensure that property management agreements are clear and concise, including all necessary clauses to protect both parties.