Property Management Company Service Agreements
If you are in the property management business, managing commercial or residential properties on behalf of owners, you will need a contract with each owner setting out the rights and obligations of your company and the property owner.
Our new template Service Agreements and Service Level Agreements are suitable for property management companies engaged in the management of all types of residential and commercial properties.
The Service Agreements are designed for the management of a single property. This could be a property occupied by a single tenant – such as a house or a factory – or a property containing a number of units – such as flats or offices – let to different tenants.
The Agreements provide for the property to be let to a tenant and managed by the Management Company during the letting and during any void periods. The rights and obligations of each party are set out in detail and can be amended to suit the particular circumstances. The Agreements include clauses dealing with key issues such as insurance, liability and indemnity, financial record keeping, confidentiality and non-solicitation.
Service Level Agreements (SLAs)
A Service Level Agreement should be used where the management company is managing a number of properties for the same owner.
These Agreements are similar to the Service Agreements but, as they foresee a long-term and flexible relationship between owner and manager, 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.
The contents of this Newsletter are for reference purposes only and do not constitute legal advice. Independent legal advice should be sought in relation to any specific legal matter.