Whether you’re a landlord hiring help or a manager taking on new clients, the property management agreement sets the tone—and the legal boundaries—for the relationship. In Utah, there are key legal and practical provisions every agreement should include.
Here’s what to look for (or insist on) before anyone signs.
Clear Scope of Services
The contract should spell out exactly what the property manager will do. Common responsibilities include:
- Rent collection
- Maintenance coordination
- Tenant screening and leasing
- Evictions and legal compliance
- Financial reporting
Ambiguity leads to disputes. Spell out what’s included and what’s not.
Fee Structure and Compensation
Be explicit about all fees:
- Monthly management fee – usually a percentage of collected rent
- Leasing fee – charged for finding new tenants
- Maintenance markup – if managers charge for coordinating repairs
- Late fee splits – who keeps them
- Early termination fees – if either party wants out
Managers should also avoid collecting rent through personal accounts. For details, see Utah Property Manager Payment Rules.
Trust Account Requirements
If the manager is licensed, Utah law requires that rent and deposits be held in a trust account under the broker’s supervision. This includes:
- Separate ledgers for each property
- Clear accounting for every dollar
- Broker oversight
Using Venmo or Zelle can violate these rules and trigger disciplinary action. Make sure your agreement complies with Utah Admin. Code R162-2f-401c.
Term and Termination
The agreement should define:
- The initial term and how it renews
- How either party can terminate—with or without cause
- Whether fees apply upon termination
- How tenant records and keys will be returned
Don’t get locked into an unworkable relationship. Build in exit ramps.
Indemnification and Insurance
Your contract should allocate risk clearly:
- Does the manager indemnify the owner for negligence?
- Is there E&O insurance or general liability coverage?
- What happens if the manager hires a bad contractor?
Get it in writing, and review your policies regularly.
Legal Compliance and Licensing
The agreement should confirm that the manager is:
- Licensed under Utah law (if required)
- Complying with fair housing, landlord-tenant, and habitability laws
- Willing to represent the landlord in court or administrative proceedings (if authorized)
You can also reference When Property Management Becomes a Legal Liability in Utah for more on this topic.
Don’t Sign a One-Page Agreement
Generic templates often lack the terms needed to prevent future disputes. If you’re investing in property—or managing it for others—you need a professionally prepared contract tailored to Utah law.
Need Help Drafting or Reviewing a Utah Property Management Agreement?
Duckworth Legal Group works with both landlords and licensed managers to ensure their agreements are clear, enforceable, and legally sound. Call 801-882-7444 or email to get started.