(b) the Owner shall exempt the Agent from any cost, loss, expense or injury (including attorneys` fees) caused to the Agent by or as a result of the application of this Agreement resulting from any delay or other breach by the Owner, administration, operation, improvement, alteration and rental of the Property, including any other activity; arising out of or related to the obligations of the agent under this Agreement or as a result of an act or matter conducted or approved by the agent, his representatives or collaborators; provided, however, that such compensation does not apply to such costs, losses, expenses or damages, in so far as they relate to or to conduct of the agent which constitutes intentional and wilful misconduct. You outsource because you want to delegate tasks to someone who knows what they`re doing, so it`s important to ensure that the management agreement determines the type of expertise expected from the management company. Most importantly, you want to make sure that the management company acts on the basis of expertise. This can be achieved through provisions that meet standards of care and is particularly important when it comes to repairs, presentations in marketing materials, eviction guidelines and other highly regulated areas. Ultimately, the owner must have a binding contract with a clear level of diligence that they can apply if the management company does not comply with this standard. Achieving the day-to-day operation of your real estate company can result in a multitude of challenges that you might not have the time, ability, or desire to deal with in-house. Many owners of multifamily (and other) real estate enter into management agreements to outsource many of the ownership functions of a multi-family investment. But these agreements require a lot of foresight if you want them to help you improve efficiency, shift risk, and use expertise. A well-thought-out management agreement will help you define the roles, responsibilities and outcomes expected by both parties.

This is essential for a positive working relationship. While it may be tempting to simply sign the deal that the management company gives you, a good little thought and reflection will almost always be a great return on investment.