Operation and Management Agreement

An operation and management agreement, commonly known as OMA, is a legally binding contract that defines the responsibilities of the parties involved in the operation and management of a property. This type of agreement is commonly used by property owners, investors, and developers who want to delegate the day-to-day management of their property to a third-party manager.

An OMA typically includes several key provisions, including an overview of the property, the roles and responsibilities of the parties involved, compensation and fees, and termination clauses. Let`s take a closer look at each of these components.

Overview of the Property

This section of the agreement should provide a detailed description of the property, including its location, size, and any unique features or challenges. It may also include information on the current state of the property, any planned improvements or renovations, and any relevant zoning or land use regulations.

Roles and Responsibilities

The OMA should clearly define the roles and responsibilities of each party involved in the operation and management of the property. This may include tasks such as leasing and tenant management, maintenance and repairs, financial management, and marketing and advertising. It`s important that these responsibilities are clearly defined to avoid any confusion or misunderstandings down the line.

Compensation and Fees

The compensation and fee structure should also be clearly outlined in the OMA. This may include a base management fee, as well as additional fees for specific services, such as leasing or maintenance. It`s important that these fees are reasonable and competitive, while also providing sufficient compensation for the third-party manager.

Termination Clauses

Finally, the OMA should include termination clauses that outline the circumstances under which either party can terminate the agreement. This may include breaches of contract, changes in ownership, or changes in the overall management strategy of the property.

Overall, an OMA is an important tool for property owners and investors who want to delegate the day-to-day management of their property to a third-party manager. By clearly defining the roles and responsibilities of each party, as well as compensation and termination clauses, an OMA can help ensure a successful and profitable property management partnership. As a professional, it`s important to include relevant keywords to increase the visibility of this article on search engines. Examples of relevant keywords include “operation and management agreement,” “property management,” and “OMA contract.”