Property Management Agreement for Malaysia

Property Management Agreement Template for Malaysia

A comprehensive legal agreement governed by Malaysian law that establishes the relationship between a property owner or management corporation and a professional property management company. The document outlines the scope of property management services, responsibilities of both parties, financial arrangements, and compliance requirements under Malaysian legislation, particularly the Strata Management Act 2013 and the Valuers, Appraisers, Estate Agents and Property Managers Act 1981. It includes detailed provisions for maintenance, financial management, reporting obligations, and dispute resolution mechanisms specific to Malaysian property management practices.

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What is a Property Management Agreement?

The Property Management Agreement is a crucial document used in the Malaysian real estate sector to establish a formal relationship between property owners or management corporations and professional property management companies. It is essential for properties requiring professional management services, particularly under the regulations of the Strata Management Act 2013 and related Malaysian legislation. The agreement typically covers comprehensive property management services, including maintenance, financial management, staff supervision, contractor management, and regulatory compliance. It's particularly important for stratified properties, commercial buildings, and large residential complexes where professional management is either required by law or necessary for efficient operation. The document must comply with Malaysian property management regulations and includes specific provisions for licensing requirements, reporting obligations, and local property management standards.

What sections should be included in a Property Management Agreement?

1. Parties: Identification of the property owner/management corporation and the property management company

2. Background: Context of the agreement, property details, and purpose of engagement

3. Definitions: Key terms used throughout the agreement

4. Appointment and Term: Formal appointment of property manager and duration of agreement

5. Scope of Services: Comprehensive list of property management services to be provided

6. Property Manager's Duties and Responsibilities: Detailed obligations including maintenance, financial management, and reporting

7. Owner's Duties and Responsibilities: Obligations of the property owner/management corporation

8. Fees and Payment Terms: Management fees, payment schedule, and reimbursable expenses

9. Insurance and Liability: Required insurance coverage and allocation of risks

10. Compliance with Laws: Obligation to comply with relevant Malaysian legislation and regulations

11. Reporting Requirements: Financial reports, operational reports, and meeting obligations

12. Termination: Grounds for termination, notice requirements, and consequences

13. Dispute Resolution: Process for resolving disputes, including mediation and arbitration

14. General Provisions: Standard contract clauses including notices, amendments, and governing law

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

1. Staff and Contractors: Details of property management staff and contractor management - include when the property requires significant staffing

2. Emergency Procedures: Specific emergency response protocols - include for larger properties or those with special safety requirements

3. Environmental Management: Green building maintenance and sustainability measures - include for properties with environmental certifications

4. Security Services: Specific security arrangements - include for high-security properties or residential complexes

5. Facility Management: Detailed facility management procedures - include for properties with complex mechanical systems

6. Capital Improvements: Procedures for major improvements and renovations - include for older properties requiring significant upgrades

7. Technology and Systems: Building management systems and software - include for smart buildings or properties with automated systems

8. Marketing and Leasing: Property marketing and tenant management - include if property manager handles leasing

What schedules should be included in a Property Management Agreement?

1. Schedule A - Property Details: Detailed description of the property, including location, facilities, and amenities

2. Schedule B - Scope of Services: Detailed breakdown of all services to be provided, including frequency and standards

3. Schedule C - Fee Schedule: Detailed breakdown of all fees, charges, and payment terms

4. Schedule D - Performance Standards: Key performance indicators and service level agreements

5. Schedule E - Maintenance Schedule: Preventive maintenance program and scheduling

6. Schedule F - Required Insurance: Details of insurance types and coverage amounts required

7. Schedule G - Staff and Contractors: List of key personnel and approved contractors

8. Appendix 1 - Property Plans: Building plans, floor plans, and site maps

9. Appendix 2 - Emergency Procedures: Detailed emergency response protocols and contact information

10. Appendix 3 - Reporting Templates: Standard formats for various required reports

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

Malaysia

Publisher

Genie AI

Document Type

Rental Agreement

Cost

Free to use
Relevant legal definitions
Relevant Industries

Real Estate

Property Development

Commercial Property

Residential Property

Retail Property

Industrial Property

Mixed-Use Development

Hospitality

Healthcare Facilities

Educational Facilities

Office Buildings

Shopping Centers

Warehouse and Logistics

Relevant Teams

Real Estate

Property Management

Facilities Management

Operations

Asset Management

Maintenance

Legal

Finance

Administration

Risk Management

Compliance

Procurement

Security

Customer Service

Relevant Roles

Property Manager

Facility Manager

Real Estate Manager

Building Manager

Asset Manager

Operations Manager

Property Management Director

Maintenance Manager

Real Estate Director

Strata Manager

Property Services Manager

Building Operations Manager

Real Estate Operations Manager

Property Administrator

Facilities Director

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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