Document:

<PAGE>

                                                                    Exhibit 10.7

                                        1
Dorsey's Forge

                                                           RESIDENTIAL PROPERTY

                          PROPERTY MANAGEMENT AGREEMENT

This Agreement is made as of the 1st day of January, 2002 between the
undersigned, KRF 3 Acquisition Company, L.L.C., a Delaware limited liability
company, (the "Owner") and the undersigned BRI OP LIMITED PARTNERSHIP, (the
"Agent").

    1. APPOINTMENT AND ACCEPTANCE. The Owner appoints the Agent as exclusive
agent for the management of the property described in Section 2 of this
Agreement, and the Agent accepts the appointment, subject to the terms and
conditions set forth in this Agreement.

    2. DESCRIPTION OF THE PROJECT. The property to be managed by the Agent under
this Agreement (the "Project") is a housing development consisting of the land,
buildings, and other improvements located in Columbia, Maryland and known as
Dorsey's Forge Apartments, containing 251 dwelling units.

    3. BASIC INFORMATION. The Agent will thoroughly familiarize itself with the
character, location, construction, layout, plan and operation of the Project,
and especially the electrical, plumbing, air-conditioning and ventilating
systems, the elevators and all other mechanical equipment.

    4. MARKETING. The Agent will carry out the marketing activities designed to
attract tenants as described below.

    5. RENTALS. The Agent will offer for rent and will rent the dwelling units
and commercial space, if any, in the Project. Incident thereto, the following
provisions will apply:

    a. The Agent will show the Project to prospective tenants;

    b. The Agent will take and process applications for rentals. If an
       application is rejected, the applicant will be told the reason for
       rejection, and will be given the rejected application, with reason for
       rejection noted. A current list of prospective tenants will be
       maintained;

    c. The Agent will prepare all dwelling leases and, unless otherwise directed
       by the Owner, will execute the same in its name, identifying itself
       thereon as agent for the Owner. Dwelling leases will be in a form
       approved by the Owner;

    d. The Owner will furnish the Agent with rent schedules, showing contract
       rents for dwelling units, and other charges for facilities and services.
       The Agent will periodically review such rent schedules and make
       recommendations to the Owner with respect to changes thereto;

<PAGE>

Dorsey's Forge                         2

    e. The Agent will collect, deposit, and disburse security deposits, if
       required, in accordance with the terms of each tenant's lease;

    f. The Agent will negotiate and prepare commercial leases and concession
       agreements, if the Project shall now or hereafter contain any commercial
       space, and will execute the same in its name, identified thereon as agent
       for the Owner, subject to the Owner's prior approval of all terms and
       conditions; and

    g. The Agent will perform periodic market surveys with respect to the market
       area in which the Project is located.

    6. COLLECTION OF RENTS AND OTHER RECEIPTS. The Agent will collect, when due,
all rents, charges and other amounts receivable for the Owner's account in
connection with the management and operation of the Project. Such receipts will
be deposited in an account, separate from all other accounts and funds, with a
bank whose deposits are insured by the Federal Deposit Insurance Corporation.
This account will be carried in the Owner's name and designated of record as KRF
3 Acquisition Company, L.L.C. d/b/a "Dorsey's Forge Apartments" (the "Project
Rental Account"). Subject to compliance with Section 11 hereof, the Agent is,
however, hereby authorized to make deposits to and withdrawals from the Project
Rental Account as agent for the Owner.

    7. ENFORCEMENT OF LEASES. The Agent will secure full compliance by each
tenant with the terms of such tenant's lease. Voluntary compliance will be
emphasized, but the Agent may lawfully terminate any tenancy when, in the
Agent's judgment, sufficient cause (including but not limited to non-payment of
rent) for such termination occurs under the terms of the tenant's lease. For
this purpose, the Agent is authorized to consult with legal counsel, to be
designated by the Owner, to bring actions for eviction against such tenants;
provided, however, the Agent shall keep the Owner informed of such actions and
shall follow such instructions as the Owner may prescribe for the conduct of any
such action. Subject to the Owner's approval, attorney fees and other necessary
costs incurred in connection with such actions will be paid out of the Project
Rental Account as Project expenses.

    8. MAINTENANCE AND REPAIR. The Agent will maintain the Project in good
repair and in compliance with local codes, and in a condition at all times
acceptable to the Owner, including, but not limited to, cleaning, painting,
decorating, plumbing, carpentry, grounds care, and such other maintenance,
repair, remodeling and refurbishing work as may be necessary, subject to any
limitations imposed by the Owner in addition to those contained herein. The
Agent will also assist the Owner in identifying and implementing capital
improvements to the Project.

    The Agent will perform such periodic physical inspections as shall be
appropriate in connection therewith. Incident thereto, the following additional
provisions will apply:

<PAGE>

Dorsey's Forge                        3

    a. Special attention will be given to preventive maintenance, and, to the
       extent feasible, the services of regular maintenance employees will be
       used;

    b. Subject to the Owner's prior approval, the Agent will negotiate, review
       and sign, on behalf of the Owner, contracts with qualified independent
       contractors for the maintenance and repair of heating and
       air-conditioning systems and elevators, and for extraordinary repairs to
       such items and other assets of the Project, which are beyond the
       capability of regular maintenance employees;

    c. The Agent will systematically and promptly receive and investigate all
       service requests from tenants, take such action thereon as may be
       justified, and will keep records of the same. Emergency requests will be
       received and serviced on a twenty-four (24) hour basis. Complaints of a
       serious nature will be reported to the Owner after investigation;

    d. The Agent is authorized to purchase all materials, equipment, tools,
       appliances, supplies and services necessary to the proper maintenance
       and repair of the Project; and

    e. Notwithstanding any of the foregoing provisions, the prior approval of
       the Owner will be required for any expenditure which exceeds Five
       Thousand Dollars ($5,000) in any one instance for labor, materials or
       otherwise, in connection with the maintenance and repair of the Project,
       except for recurring expenses within the limits of the operating budget
       and emergency repairs involving manifest danger to persons or property or
       required to avoid suspension of any necessary service to the Project. In
       the latter event, the Agent will inform the Owner of the facts as
       promptly as possible.

    9. UTILITIES AND SERVICES. In accordance with the operating budget, the
Agent will make arrangements for water, electricity, gas, sewage and trash
disposal, vermin extermination, decorating, laundry facilities, and telephone
service. Subject to the Owner's prior approval, the Agent will make such
contracts as may be necessary to secure such utilities and services.

    10. NONCUSTOMARY SERVICES. Notwithstanding any contrary provision in this
Agreement, the Owner shall cause any services, in connection with the rental of
the Project, that are not customarily furnished to tenants of comparable
buildings in the region (including, but not limited to, the provision of maid
service and the furnishing of parking facilities, other than on a complimentary,
unreserved basis), to be performed by an entity qualifying as an independent
contractor.

    11. EMPLOYEES. Except as otherwise agreed, all on-site personnel will be
employees of the Owner, for purposes of their compensation, and not the Agent,
but will be hired, paid,

<PAGE>

Dorsey's Forge                           4

supervised, and discharged through the Agent, in the Agent's sole discretion,
subject to the following conditions:

    a. The resident manager will have duties of the type usually associated with
       this position;

    b. Compensation (including fringe benefits) of bookkeeping, clerical, and
       other managerial personnel will be within the Agent's sole discretion,
       provided minimum wage standards are met;

    c. The Owner will reimburse the Agent for the compensation (including fringe
       benefits) payable to the on-site management and maintenance employees,
       and for all local, state and federal taxes and assessments (including,
       but not limited to, Social Security taxes, unemployment insurance, and
       Workman's Compensation insurance) incident to the employment of such
       personnel. Such reimbursements will be paid out of the Project Rental
       Account and will be treated as Project expenses; and

    d. Compensation (including fringe benefits) payable to the on-site staff,
       and all bookkeeping, clerical and other managerial personnel, plus all
       local, state and federal taxes and assessments incident to the employment
       of such personnel will be borne solely by the Project, and will not be
       paid out of the Agent's management fee. The rental value of any dwelling
       unit furnished rent-free to on-site personnel will be treated as a cost
       of the Project.

   12. DISBURSEMENTS FROM PROJECT RENTAL ACCOUNT.

    a. From the funds collected and deposited by the Agent in the Project Rental
       Account, either the Owner or the Agent, as shall be determined from time
       to time by the Owner, will make the following disbursements, when
       payable:

       (1)  Reimbursement to the Agent for compensation payable to the employees
            specified in Section 11 above, and for the taxes and assessments
            payable to local, state and federal governmental agencies;

       (2)  All sums otherwise due and payable by the Owner as expenses of the
            Project, including compensation payable to the Agent for its
            services hereunder and expenses of the Project incurred by the Agent
            under the terms of this Agreement;

       (3)  Any payment required to be made monthly by the Owner to any
            mortgagee of the Project, including the amounts due under the
            mortgage for principal amortization, interest, ground rents, taxes
            and assessments, and fire and other hazard insurance premiums;

<PAGE>

Dorsey's Forge                             5

    b. Except for the disbursements mentioned above, funds will be disbursed or
       transferred from the Project Rental Account only as the Owner may from
       time to time direct; and

    c. In the event the balance in the Project Rental Account is at any time
       insufficient to pay disbursements due and payable under Section 12(a)
       above, the Agent will inform the Owner of that fact and Owner shall
       immediately deposit sufficient funds. In no event will the Agent be
       required to use its own funds to pay such disbursements.

   13. RECORDS AND REPORTS. The Agent will have the following responsibilities
with respect to records and reports:

    a. The Agent will establish and maintain a comprehensive system of records,
       books and accounts in a manner satisfactory to the Owner;

    b. With respect to each fiscal year ending during the term of this
       Agreement, the Agent will furnish an annual financial report. The Agent
       will also prepare and review budgets and cash flow projections for the
       Project in such manner and at such times as may be agreed with the Owner;

    c. The Agent will furnish such information (including occupancy reports) as
       may be reasonably requested by the Owner from time to time with respect
       to the financial, physical, or operating condition of the Project; and

    d. By the twenty-fifth (25th) day of each month, the Agent will furnish the
       Owner with a statement of receipts and disbursements during the previous
       month, a schedule of accounts receivable and payable, as of the end of
       the previous month and reconciled bank statements for the Project Rental
       Account, as of the end of the previous month.

    14. ON-SITE MANAGEMENT FACILITIES. Subject to the further agreement of the
Owner and the Agent as to more specific terms, the Agent will maintain a
management office within the Project, for the convenience of the Owner, for the
sole purpose of the Agent's performing its duties under this Agreement, and the
Owner will make no rental charge for such office.

    15. INSURANCE. The Owner will inform the Agent of insurance to be carried
with respect to the Project and its operations, and the Agent, when authorized
by the Owner, will cause such insurance to be placed and kept in effect at all
times. The Agent will pay premiums out of the Project Rental Account, as an
expense of the Project. All insurance will

<PAGE>

Dorsey's Forge                       6

be placed with such companies, on such conditions, in such amounts, and with
such beneficial interests appearing thereon as shall be acceptable to the Owner
and shall be otherwise in conformity with any mortgage relating to the Project,
provided that the same will include public liability coverage, with the Agent
designated as one of the insured, in amounts acceptable to the Owner, Agent and
any mortgagee of the Project. The Agent will investigate and furnish the Owner
with full reports as to all accidents, claims, and potential claims for damage
relating to the Project and will cooperate with the Owner's insurers in
connection therewith.

    16. AGENT'S COMPENSATION. The Agent will be compensated for its service
under this Agreement by monthly fees to be paid out of the Project Rental
Account to be treated as Project expenses. Such fees will be payable monthly.
Each such monthly fee will be in an amount equal to five percent (5%) of the
gross receipts (including rentals and other operating income of the Project)
actually received during the preceding month.

    17. INDEMNIFICATION BY THE OWNER. The Owner shall indemnify and hold
harmless the Agent from all liability, claims, damages or loss arising out of
the performance of its duties hereunder, and related expenses, including
reasonable attorneys' fees, to the extent such liability, claims, damages or
losses and related expenses are not fully reimbursed by insurance; provided,
however, that the Agent shall be entitled to indemnification, under this Section
17, only if the Agent, in connection with any liability, damages, claim or loss
for which it seeks indemnity, acted in a manner which would not constitute gross
negligence or willful misfeasance.

    18. INDEMNIFICATION BY THE AGENT. The Agent shall indemnify and hold
harmless the Owner from contract or other liability, claims, damages, losses and
related expenses, including attorneys' fees, to the extent that such liability,
claims, damages, losses and related expenses are not fully reimbursed by
insurance and are incurred by the Owner by reason of the Agent's deliberate
dishonesty or gross negligence.

    19. RIGHT TO ASSIGN. The Agent may assign some or all of its rights or
obligations under this Agreement, provided that the Agent remains principally
responsible hereunder, and the Owner is given notice of such assignment. The
Owner may assign its rights and obligations under this Agreement to any
successor in title to the Property, and upon any such assignment, the Owner
shall be relived of all liability accruing after the effective date of such
assignment.

    20. TERM OF AGREEMENT. This agreement shall be in effect for a period
commencing on the date hereof. This agreement may be terminated, without
penalty, by written notice of either party to the other as of the end of any
calendar month, provided at least thirty (30) days advance notice thereof is
given.

    IN WITNESS WHEREOF, the parties hereto (by their duly authorized
representatives)

<PAGE>

Dorsey's Forge                         7

have executed this Agreement as of the date first above written.

<TABLE>
<S>                                        <C>
OWNER:                                     AGENT:

KRF 3 ACQUISITION COMPANY, L.L.C.          BRI OP LIMITED PARTNERSHIP
                                             By: Berkshire Apartments, L.L.C.,
                                                 its general partner

By: /s/ David C. Quade
   ----------------------------
Its: Executive Vice President
                                             By: /s/ Kenneth J. Richard
                                                -------------------------------
                                             Its: Senior Vice President
</TABLE><PAGE>

                                                              Exhibit 10.9

Berkshire Income Realty, Inc.
August 13, 2002
Page 1

                       [Georgeson Shareholder Letterhead]

                               _____________, 2002

Berkshire Income Realty, Inc.
One Beacon Street, Suite 1500
Boston, MA 02108

                  Re: LETTER OF AGREEMENT

Gentlemen:

This Letter of Agreement, including the Appendix attached hereto (collectively,
this "Agreement"), sets forth the terms and conditions of the engagement by
Berkshire Income Realty, Inc. (the "Company") of Georgeson Shareholder
Communications Inc. and Georgeson Shareholder Securities Corporation
(collectively, "Georgeson") to act as Information Agent and Dealer Manager,
respectively, in connection with the Company's Exchange Offer of its Series A
Preferred Stock for interests in Krupp Government Income Trust, Krupp Government
Income Trust II, Krupp Insured Mortgage Limited Partnership, Krupp Insured Plus
Limited Partnership, Krupp Insured Plus II Limited Partnership, and Krupp
Insured Plus III Limited Partnership and the related public offering for cash of
such Series A Preferred Stock (together, the "Offer"). The term of the Agreement
shall be the term of the Offer, including any extensions thereof.

         (a) SERVICES. Georgeson shall perform the services described in the
             Fees & Services Schedule attached hereto as Appendix I
             (collectively, the "Services").

         (b) FEES. In consideration of Georgeson's performance of the Services,
             the Company shall pay Georgeson the amounts, and pursuant to the
             terms, set forth on the Fees & Services Schedule attached hereto as
             Appendix 1.

         (c) EXPENSES. In connection with Georgeson's performance of the
             Services, and in addition to the fees and charges discussed in
             paragraph (b) hereof, the Company agrees that it shall be solely
             responsible for the following out-of-pocket costs and expenses, and
             that the Company shall, at Georgeson's sole discretion, (i)
             reimburse Georgeson for such costs and expenses actually incurred
             by Georgeson, (ii) pay such costs and expenses directly and/or
             (iii) advance sufficient funds to Georgeson for payment of such
             costs and expenses:

                  o reasonable and customary expenses incidental to the Offer,
                    including postage and freight charges incurred in delivering
                    Offer materials;

                  o reasonable and customary third-party expenses incurred by
                    Georgeson in working with its agents or other parties
                    involved in the Offer, including charges for bank threshold
                    lists, data processing, telephone directory assistance,
                    facsimile transmissions or other forms of electronic
                    communication;

                  o expenses incurred by Georgeson at the Company's request,
                    including copying expenses, expenses relating to the
                    printing of additional and/or supplemental material and
                    reasonable travel expenses of Georgeson's executives
                    requested and approved in advance by Company;

                  o any other fees and expenses authorized by the Company and
                    resulting from extraordinary contingencies which arise
                    during the course of the Offer, including fees and expenses
                    for advertising, media relations, stock watch and analytical
                    services.

<PAGE>

Berkshire Income Realty, Inc.
August 13, 2002
Page 2

         (d) COMPLIANCE WITH APPLICABLE LAWS. The Company and Georgeson hereby
             represent to one another that each shall use its best efforts to
             comply with all applicable laws relating to the Offer, including,
             without limitation, the Securities Act of 1933, as amended, the
             Securities Exchange Act of 1934, as amended, and the rules and
             regulations promulgated thereunder.

         (e) INDEMNIFICATION. The Company agrees to indemnify and hold harmless
             Georgeson and its stockholders, officers, directors, employees,
             agents and affiliates against any and all claims, costs, damages,
             liabilities, judgments and expenses, including the fees, costs and
             expenses of counsel retained by Georgeson, which result from
             claims, actions, suits, subpoenas, demands or other proceedings
             brought against or involving Georgeson which directly relate to or
             arise out of Georgeson's performance of the Services (except for
             costs, damages, liabilities, judgments or expenses which shall have
             been determined by a court of law pursuant to a final and
             nonappealable judgment to have directly resulted from Georgeson's
             gross negligence or intentional misconduct). In addition, the
             prevailing party shall be entitled to reasonable attorneys' fees
             and court costs in any action between the parties to enforce the
             provisions of this Agreement, including the indemnification rights
             contained in this paragraph. The indemnity obligations set forth in
             this paragraph shall survive the termination of this Agreement.

         (f) GOVERNING LAW. This Agreement shall be governed by the substantive
             laws of the State of New York without regard to its principles of
             conflicts of laws, and shall not be modified in any way, unless
             pursuant to a written agreement which has been executed by each of
             the parties hereto. The parties agree that any and all disputes,
             controversies or claims arising out of or relating to this
             Agreement (including any breach hereof) shall be subject to the
             jurisdiction of the federal and state courts in New York County,
             New York; and the parties hereby waive any defenses on the grounds
             of lack of personal jurisdiction of such courts, improper venue or
             FORUM NON CONVENIENS.

         (g) EXCLUSIVITY. The Company agrees and acknowledges that Georgeson
             shall be the sole Information Agent and Dealer Manager retained by
             the Company in connection with the Offer, other than affiliates of
             the Company, and that the Company shall refrain from engaging any
             other Information Agent or Dealer Manager to render any Services,
             in a consultative capacity or otherwise, in relation to the Offer,
             other than affiliates of the Company.

         (h) ADDITIONAL SERVICES. In addition to the Services, the Company may
             from time to time request that Georgeson provide it with certain
             additional consulting or other services. The Company agrees that
             Georgeson's provision of such additional services shall be governed
             by the terms of a separate agreement to be entered into by the
             parties at such time or times, and that the fees charged in
             connection therewith shall be at Georgeson's then-current rates.

         (i) CONFIDENTIALITY. Georgeson agrees to preserve the confidentiality
             of (i) all material non-public information provided by the Company
             or its agents for Georgeson's use in fulfilling its obligations
             hereunder and (ii) any information developed by Georgeson based
             upon such material non-pubic information (collectively,
             "Confidential Information"). For purposes of this Agreement,
             Confidential Information shall not be deemed to include any
             information which (w) is or becomes generally available to the
             public in accordance with law other than as a result of a
             disclosure by Georgeson or any of its officers, directors,
             employees, agents or affiliates; (x) was available to Georgeson on
             a nonconfidential basis and in accordance with law prior to its
             disclosure to Georgeson by the Company, (y) becomes available to
             Georgeson on a nonconfidential basis and in accordance with law
             from a person other than the Company or any of its officers,
             directors, employees, agents or affiliates who is not otherwise
             bound by a confidentiality agreement with the Company or is not
             otherwise prohibited from transmitting such Information to a third
             party; or (z) was independently and lawfully

<PAGE>

Berkshire Income Realty, Inc.
August 13, 2002
Page 3

             developed by Georgeson based on information described in clauses
             (W), (x) or (y) of this paragraph. The Company agrees that all
             reports, documents and other work product provided to the Company
             by Georgeson pursuant to the terms of this Agreement are for the
             exclusive use of the Company and may not be disclosed to any other
             person or entity without the prior written consent of Georgeson.
             The confidentiality obligations set forth in this paragraph shall
             survive the termination of this Agreement.

         (j) ENTIRE AGREEMENT; APPENDIX. This Agreement constitutes the entire
             agreement and supersedes all prior agreements and understandings,
             both written and oral, among the parties hereto with respect to the
             subject matter hereof. The Appendix to this Agreement shall be
             deemed to be incorporated herein by reference as if fully set forth
             herein. This Agreement shall be binding upon all successors to the
             Company (by operation of law or otherwise).

             IF THE ABOVE IS AGREED TO BY YOU, PLEASE EXECUTE AND RETURN THE
             ENCLOSED DUPLICATE OF THIS AGREEMENT TO GEORGESON SHAREHOLDER
             COMMUNICATIONS INC., 17 STATE STREET 10TH FLOOR, NEW YORK, NEW YORK
             10004, ATTENTION: MARCY ROTH, CONTRACT ADMINISTRATOR.

                                      Sincerely,

                                      GEORGESON SHAREHOLDER
                                        COMMUNICATIONS INC.

                                      By:
                                         --------------------------------------

                                      Title:
                                            -----------------------------------

                                      GEORGESON SHAREHOLDER
                                        SECURITIES CORPORATION

                                      By:
                                         --------------------------------------

                                      Title:
                                            -----------------------------------

Agreed to and accepted as of
the date first set forth above:

      BERKSHIRE INCOME REALTY INC.
By:
   -------------------------------

Title:
      ----------------------------

<PAGE>

Berkshire Income Realty, Inc.
August 13, 2002
Page 4

                                                                     APPENDIX I

                            FEES & SERVICES SCHEDULE

<TABLE>
<S>                                                                                   <C>
BASE SERVICES                                                                         $100,000.00
                                                                                      -----------
o Information Agent
     o Includes ordering and processing beneficial owner Information;
       coordinating distribution of bank/broker material; producing
       institutional contact listings; coordinating tender information with the
       Depositary; coordinating the telephone effort

o Information Banking - base fee
     o Provide information and explain benefits of the offer to brokers,
       institutional and individual investors; survey reactions and obtain
       intelligence about potential success of the offer, provide advice and
       counsel to the offeror.

o Depositary Services
     o Processing the sale of shares for cash, if necessary.

SUCCESS FEES
o    For each trust or partnership that receives participation of 25% or                    TBD
     more, Berkshire Income Realty, Inc. will pay an additional fee of                      ---
     $25,000.00 per fund.

PREMIUM SERVICES
o Telephone communications with target shareholders                                         TBD
     o $4.50 per completed call (incoming and outgoing)                                     ---
</TABLE>

-------------------------------------------------------------------------------
                            FEE PAYMENT INSTRUCTIONS

The Company shall pay Georgeson as follows:

o Upon execution of this Agreement, the Company shall pay Georgeson $50,000.00,
  which amount is in consideration of Georgeson's commitment to represent the
  Company and is non-refundable;

o Upon completion of the Offer, the Company shall pay Georgeson the sum of (i)
  $50,000.00, (ii) any variable fees for Premium Services (E.G., telephone
  calls) which shall have accrued over the course of the Offer, (iii) all
  reimbursable expenses, and (iv) the success fees.

Georgeson will send the Company an invoice for each of the foregoing payments.

-------------------------------------------------------------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00044-of-00352.parquet"}]]