Property Management Service Level Agreement – Mixed-Use Property

This Property Management Service Level Agreement – Mixed-Use Property is designed for use by a property management company that manages one or more mixed-use (residential/commercial) developments on behalf of the owner. 

This service level agreement, which reflects the changes made to the Smoke and Carbon Monoxide Alarm Regulations from the 01 October 2022 (which affects England only), sets out (in Schedule 1) a list of the properties which the management company will manage. This list can change over time as the agreement is designed to be flexible and to form the basis of a long-term relationship between the parties. The residential units within each property are to be let on assured shorthold tenancies and the commercial units on business leases. All the units are managed by the management company for the term of the agreement.

The agreement sets out in detail the rights and obligations of each party. It includes clauses dealing with key issues such as insurance, liability and indemnity, financial record keeping, confidentiality and non-solicitation. There are also provisions for monitoring the management company’s performance and for reviewing and varying the contractual relationship between the parties. Penalty fees and termination rights may apply if the management company does not perform to the required standard.

Clauses 6.9 and 6.10 are optional. These address the freedom of the parties to deal with third parties. You may wish to include one or both of these depending on the bias you wish the agreement to adopt. It should be understood that clause 6.9, whilst allowing the client to obtain similar services from a third party, should not harm the service provider’s interests under the agreement at hand as its provisions and binding effect upon the client will remain unchanged. Clause 6.10 has the potential to limit the service provider’s freedom to deal with the client’s competitors. This should be used with care and the consent referred to in that clause should generally be given without hesitation, lest the restrictions in clause 6.10 be challenged on the grounds of restraint of trade. If you are the client and are considering withholding such consent, legal advice from a commercial law firm is strongly recommended.

The scope of the management company’s role is set out in Schedule 2. An example scope of work is included in the template but this should be reviewed carefully and amended as appropriate to suit the needs of the management company and to reflect the particular transaction.

Fees and payment are covered in Schedule 3. There can be a monthly fee, ad hoc payments or a combination of the two. Penalty payments can apply if the management company fails to meet the expected standards of service.

Schedule 4 contains a list of service levels – the standards to which the management company must perform the services – and details of the performance monitoring that must be carried out. Example provisions are included but these should be amended to suit the management company’s working practices.

Schedule 5 contains the owner’s obligations. The example wording should be reviewed and amended as necessary.

This Agreement includes provisions relating to the mandatory requirements for property managers to be members of a Client Money Protection Scheme.  This statement must be included if the Manager holds client money.

This Property Management Service Level Agreement – Mixed-Use Property contains the following clauses:

1. Definitions and Interpretation
2. Term of Agreement
3. Manager’s Obligations
4. Client’s Obligations
5. Fees, Payment and Records
6. Provision of the Services
7. Service and Agreement Monitoring
8. Performance Management and Monitoring
9. Confidentiality
10. Intellectual Property Rights
11. Termination
12. Post-Termination
13. Liability and Indemnity
14. Force Majeure
15. No Waiver
16. Further Assurance
17. Costs
18. Set-Off
19. Assignment and Sub-Contracting
20. Time
21. Relationship of the Parties
22. Non-Solicitation
23. Third Party Rights
24. Notices
25. Entire Agreement
26. Counterparts
27. Severance
28. Dispute Resolution
29. Law and Jurisdiction

And the following schedules:

1. List of Properties
2. Specification of Services
3. Fees, Payment and Penalty Fees
4. Service Levels, Performance Monitoring and Performance Reports
5. Client’s Obligations

Optional phrases / clauses are enclosed in square brackets. These should be read carefully and selected so as to be compatible with one another. Unused options should be removed from the document.

This document is in open format. Either enter the requisite details in the highlighted fields or adjust the wording to suit your purposes.

Once you have purchased access to the appropriate document folder click on the “Download Document” button below. You will be asked what you want to do with the file. It is recommended that you save the document to a location of your choice prior to viewing.

Property Management Service Level Agreement – Mixed-Use Property is part of Property Documents. Just £35.00 + VAT provides unlimited downloads from Property Documents for 1 year.