Indemnity Clause in Property Management Contracts

[Grant Fjetland]

Hello BP Community,

I have been vetting some property management companies (Manager).  When looking at contracts, I am seeing a theme of indemnity clauses.  The Owner would be on the hook for the negligence of the Manager and agree to hold them harmless unless the negligence is deemed “gross” negligence or intentional misconduct on the Manager.   I understand why a management company would want to limit their risk exposure.  As an investor, I also want to limit my exposure.   I'd prefer a contract where I own the risk of my negligence and the Manager owns the risk of their negligence.

The Management companies I am looking at are extremely reputable companies, which is why I assume they can have a clause like this limiting their exposure.   Investors want a reputable, quality management company.   These companies are not seeking out my business, they have a line around the block wanting their services.  I am coming to them.

My questions for this community,

1)  Are indemnity clauses like I described common?

2) If yes, does anyone have a good suggestion on negociating a limited indeminty agreement (you pay for your negligence, I'll pay for mine)?

3) Any thoughts from experienced investors on accepting with this type of indemnity clause?  Simply part of my personal risk tolerance?

Thank you all in advance for your insights!