Property Management Contract for Australia

Property Management Contract Template for Australia

This document is a comprehensive property management agreement governed by Australian law, designed to establish and regulate the professional relationship between a property owner and a property management company. It complies with Australian federal and state-specific property legislation, including the Property and Stock Agents Act and relevant Residential Tenancies Acts. The agreement details the scope of property management services, fee structures, responsibilities of both parties, trust account management, reporting requirements, and operational procedures, while ensuring compliance with Australian consumer protection and privacy laws.

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What is a Property Management Contract?

The Property Management Contract serves as a crucial legal instrument in the Australian real estate sector, establishing the framework for professional property management services. This document is essential when property owners wish to delegate the management of their real estate assets to professional property managers, ensuring clear definition of roles, responsibilities, and service expectations. The agreement encompasses all aspects of property management, including tenant management, maintenance coordination, financial reporting, and compliance with Australian federal and state-specific regulations. It is designed to protect both parties' interests while ensuring transparent and efficient property management operations. The contract's structure and content reflect specific requirements of Australian property law and industry best practices, making it suitable for various property types from residential to commercial assets.

What sections should be included in a Property Management Contract?

1. Parties: Identifies and provides full details of the property owner(s) and the property management company

2. Background: Establishes the context of the agreement, including property details and the owner's intention to engage the property manager

3. Definitions: Defines key terms used throughout the agreement for clarity and legal certainty

4. Appointment and Authority: Formally establishes the property manager's appointment and scope of authority

5. Term of Agreement: Specifies the duration of the agreement, including start date and any renewal provisions

6. Property Manager's Services: Comprehensive list of services to be provided by the property manager

7. Property Manager's Obligations: Details the specific duties and responsibilities of the property manager

8. Owner's Obligations: Outlines the property owner's responsibilities and commitments

9. Fees and Expenses: Details all management fees, commission structures, and reimbursable expenses

10. Trust Account Management: Specifies how rental income and expenses will be handled through trust accounts

11. Reporting and Accounting: Describes the frequency and type of financial reports and statements to be provided

12. Insurance and Liability: Outlines insurance requirements and liability allocation between parties

13. Termination: States conditions and procedures for terminating the agreement

14. Dispute Resolution: Establishes procedures for handling disputes between parties

15. General Provisions: Contains standard legal provisions including notices, governing law, and entire agreement clauses

What sections are optional to include in a Property Management Contract?

1. Special Instructions: Used when the owner has specific requirements for property management or maintenance

2. Delegation of Authority: Included when the property manager needs explicit permission to delegate certain duties to third parties

3. Emergency Procedures: Added when specific emergency response protocols need to be documented

4. Marketing and Advertising: Included when specific marketing strategies or budgets need to be agreed upon

5. Property Improvement Works: Used when major renovations or improvements are planned or anticipated

6. Multiple Property Management: Added when the agreement covers multiple properties

7. Holiday or Short-term Letting: Included for properties that will be used for short-term or holiday rentals

8. Strata Management Interface: Required for properties within strata schemes

9. Foreign Investment Considerations: Added when the property owner is a foreign investor

What schedules should be included in a Property Management Contract?

1. Property Details Schedule: Detailed description of the managed property including address, features, and condition report

2. Fee Schedule: Comprehensive breakdown of all fees, charges, and commission structures

3. Maintenance Schedule: Outline of regular maintenance tasks and procedures

4. Authorized Expenditure Limits: Details of spending authorities and limits for various types of expenses

5. Key Performance Indicators: Metrics for measuring the property manager's performance

6. Service Level Agreement: Detailed specifications of service standards and response times

7. Contact Details: List of emergency contacts, preferred contractors, and key stakeholders

8. Property Manager's Credentials: Copies of licenses, insurance certificates, and other relevant credentials

9. Reporting Templates: Standard formats for various reports and statements to be provided

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Australia

Publisher

Genie AI

Sector

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Management

Residential Property

Commercial Property

Retail Property

Industrial Property

Mixed-Use Property

Student Accommodation

Retirement Living

Holiday Rentals

Relevant Teams

Legal

Property Management

Operations

Compliance

Finance

Risk Management

Client Services

Business Development

Asset Management

Facilities Management

Relevant Roles

Property Manager

Real Estate Agent

Asset Manager

Facilities Manager

Property Management Director

Real Estate Portfolio Manager

Leasing Manager

Operations Manager

Compliance Officer

Legal Counsel

Risk Manager

Trust Account Manager

Property Management Coordinator

Business Development Manager

Client Relationship Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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