Property Management Agreement for New Zealand

Property Management Agreement Template for New Zealand

A comprehensive legal agreement governed by New Zealand law that establishes the professional relationship between a property owner and a property management company. This document outlines the terms and conditions under which the property manager will provide services, including their responsibilities, authority limits, fee structures, and reporting obligations. It incorporates relevant requirements from New Zealand's Residential Tenancies Act 1986, Property Law Act 2007, and other applicable legislation, while providing clear guidelines for property maintenance, financial management, and dispute resolution procedures.

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What is a Property Management Agreement?

The Property Management Agreement serves as a crucial legal document in New Zealand's real estate sector, establishing the formal relationship between property owners and professional property managers. This agreement is essential when property owners wish to delegate the day-to-day management of their real estate assets to professional managers. The document comprehensively covers all aspects of property management, including but not limited to tenant selection, rent collection, maintenance coordination, financial reporting, and regulatory compliance. It ensures alignment with New Zealand's property laws and regulations, including the Residential Tenancies Act 1986, Property Law Act 2007, and the Real Estate Agents Act 2008. The agreement is designed to protect both parties' interests while providing clear operational guidelines and performance expectations.

What sections should be included in a Property Management Agreement?

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

2. Background: Outlines the context of the agreement, including the property 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 renewal terms

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

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

10. Financial Management: Specifies procedures for rent collection, trust account management, and financial reporting

11. Maintenance and Repairs: Establishes processes for property maintenance, including approval limits and emergency procedures

12. Termination: Sets out the grounds and process for termination by either party

13. Liability and Indemnity: Defines the extent of liability and indemnification obligations

14. Dispute Resolution: Outlines the process for resolving disputes between parties

15. General Provisions: Includes standard legal clauses such as governing law, notices, and entire agreement

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

1. Body Corporate Management: Required for apartments or units within a body corporate structure, detailing specific obligations related to body corporate rules and management

2. Multiple Property Management: Used when the agreement covers multiple properties, defining specific arrangements for portfolio management

3. Holiday Home Management: Specific provisions for managing short-term holiday rentals, including booking systems and turnover procedures

4. Property Development Services: Required when the property manager will oversee renovation or development projects

5. Marketing and Advertising: Detailed section on marketing responsibilities when specific promotional activities are required

6. Insurance Requirements: Additional insurance obligations beyond standard coverage

7. Staff Accommodation Management: Specific provisions for managing properties used as staff accommodation

8. Sustainability Management: Optional section for properties with specific environmental or sustainability requirements

What schedules should be included in a Property Management Agreement?

1. Schedule 1: Property Details: Comprehensive details of the managed property(ies), including address, title information, and specific features

2. Schedule 2: Management Fees: Detailed breakdown of all fees, charges, and commission structures

3. Schedule 3: Maintenance Contractor List: Approved contractors and service providers for property maintenance

4. Schedule 4: Property Manager's Authority Limits: Specific monetary and decision-making limits for the property manager

5. Schedule 5: Reporting Requirements: Templates and schedules for required financial and property management reports

6. Schedule 6: Insurance Details: Specific insurance requirements and current policy details

7. Appendix A: Property Condition Report: Detailed report on the property's condition at the start of the management agreement

8. Appendix B: Key Register: Register of all keys, security devices, and access codes

9. Appendix C: Property Compliance Certificates: Copies of current compliance certificates and safety 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

New Zealand

Publisher

Genie AI

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Property Management

Commercial Property

Residential Property

Holiday Accommodation

Student Accommodation

Retirement Living

Industrial Property

Retail Property

Mixed-Use Development

Relevant Teams

Legal

Property Management

Operations

Asset Management

Facilities Management

Compliance

Finance

Administrative Services

Customer Service

Contract Management

Relevant Roles

Property Manager

Real Estate Agent

Property Owner

Asset Manager

Facilities Manager

Operations Manager

Portfolio Manager

Real Estate Director

Body Corporate Manager

Compliance Officer

Legal Counsel

Contract Administrator

Property Administrator

Leasing Manager

Building Manager

Industries
Residential Tenancies Act 1986: The primary legislation governing residential tenancy relationships in New Zealand, including obligations of landlords, property managers, and tenants. It covers rent collection, maintenance responsibilities, and dispute resolution processes.
Property Law Act 2007: Establishes fundamental principles of property law and property management, including legal requirements for property transactions and management agreements.
Real Estate Agents Act 2008: Regulates real estate activities including property management services, setting professional standards and requirements for licensed property managers.
Privacy Act 2020: Governs the collection, use, and storage of personal information of tenants and property owners, ensuring privacy protection in property management operations.
Health and Safety at Work Act 2015: Outlines obligations for ensuring property safety and maintaining healthy living conditions, including responsibilities for managing hazards and risks.
Contract and Commercial Law Act 2017: Provides the legal framework for forming and executing commercial contracts, including property management agreements.
Anti-Money Laundering and Countering Financing of Terrorism Act 2009: Requires property managers to conduct due diligence on clients and report suspicious transactions in property management activities.
Building Act 2004: Sets standards for building maintenance and compliance, which property managers must consider when maintaining properties.
Unit Titles Act 2010: Relevant for managing apartments and units in multi-unit complexes, defining specific requirements for body corporate management.
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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