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A property management contract is a legal agreement between a property owner (the client) and a property management company (the manager). It defines the responsibilities, rights, and obligations of each party regarding the management of residential, commercial, or mixed-use properties.
This contract typically covers services such as tenant screening, rent collection, property maintenance, and compliance with UK laws like the Landlord and Tenant Act 1985 and The Housing Act 2004.
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Property management contracts protect both the property owner and the management company by setting clear expectations and reducing the risk of disputes.
💡 Did You Know?
Under the Housing Act 2004, landlords must register tenants' deposits in a government-approved tenancy deposit protection scheme within 30 days of receipt.
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A well-drafted property management contract should address all critical aspects of property oversight. Here are the essential clauses:
Identify the property owner and the management company with their full legal details.
Example Clause:
"This Agreement is made between Greenfield Estates Ltd (the Manager), registered in England and Wales (Company No. 98765432), and James Thompson (the Client), residing at 25 Park Lane, Bristol."
💡 Tip:
Ensure all contact details are up to date to avoid communication issues later.
Provide a detailed description of the property under management.
Example Clause:
"The property subject to this Agreement is a residential block located at 10 Rosewood Avenue, Manchester, comprising 12 flats."
Key Information to Include:
Clearly define the management services provided.
Example Clause:
"The Manager shall provide tenant sourcing, rent collection, property maintenance, and compliance with safety regulations."
Common Services Include:
Outline how the property manager will be compensated.
Example Clause:
"The Manager shall receive a fee equal to 10% of the monthly rental income, payable on the first business day of each month."
Key Details to Include:
💡 Did You Know?
Property managers cannot charge hidden fees under the Tenant Fees Act 2019. All costs must be transparent and agreed upon in advance.
Specify the responsibilities relating to tenants.
Example Clause:
"The Manager shall handle all tenant interactions, including communication, dispute resolution, and lease renewals."
Typical Tenant Management Tasks:
Define how maintenance requests and repairs will be handled.
Example Clause:
"The Manager shall arrange and supervise all necessary repairs, up to a limit of £500 per incident, without prior approval from the Client."
Key Points:
💡 Tip:
Regular inspections help identify maintenance issues early, reducing long-term costs.
Confirm that the manager will keep the property compliant with UK laws.
Example Clause:
"The Manager shall ensure compliance with the Gas Safety (Installation and Use) Regulations 1998 by arranging annual gas safety checks."
Key Compliance Areas:
Clarify insurance responsibilities for both parties.
Example Clause:
"The Client shall maintain property insurance, while the Manager shall secure liability insurance for its services."
Explain how the contract can be ended and how disputes will be handled.
Example Clause:
"This Agreement may be terminated by either party with 30 days' written notice. Disputes shall be resolved through mediation in accordance with UK law."
✅ Full names and contact details of both parties.
✅ Detailed property description.
✅ Clear scope of management services.
✅ Transparent fee structure and payment terms.
✅ Tenant management responsibilities.
✅ Maintenance and repair protocols.
✅ Legal compliance obligations.
✅ Insurance requirements.
✅ Dispute resolution and termination clauses.
✅ Signatures of both parties with dates.
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A landlord hires a management company to handle tenant interactions and maintenance for a block of flats. The contract sets a 12% management fee and specifies quarterly inspections.
Insight:
Residential property management often involves regular safety checks for gas and fire hazards.
A retail investor signs a contract with a management firm to oversee multiple high-street shops. The contract includes provisions for service charge management and lease negotiations.
Insight:
Commercial contracts should address business tenant requirements, like signage permissions and maintenance of shared spaces.
A holiday homeowner engages a management company to manage bookings, clean the property, and assist guests. The contract includes a seasonal pricing structure.
Insight:
Holiday lets require clauses about guest damage, cleaning fees, and booking procedures.
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Property management often involves multiple legal documents. Here are some related templates you may find useful:
This document outlines the terms between landlords and tenants, including rent, deposits, and maintenance responsibilities.
This agreement defines the scope, schedule, and costs of regular property maintenance services.
A checklist for landlords to document property conditions before, during, and after tenancies.
Our legal templates are written in simple, plain English—no complicated jargon. Legal documents that anyone can understand.
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Managing a property involves more than just collecting rent. A property management contract is essential for setting clear expectations between property owners and management companies. From maintenance responsibilities to legal compliance, these contracts provide clarity and protect both parties from potential disputes.
Our expert lawyers have answered the most frequently asked questions about property management contracts to help you understand their purpose, structure, and key clauses.
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A property management contract is a legal agreement between a property owner and a property management company. It defines the manager's responsibilities and the owner's obligations, covering tasks such as:
💡 Did You Know?
Under the Landlord and Tenant Act 1985, landlords are legally required to keep properties in a safe, habitable condition.
A property management contract helps:
Tip:
Even if you have a long-standing relationship with your property manager, a written contract ensures everyone is on the same page.
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A comprehensive property management contract should cover:
💡 Did You Know?
The Tenant Fees Act 2019 restricts the types of fees property managers can charge tenants in the UK.
The contract should clearly define who handles maintenance tasks. Generally:
Example Clause:
"The Manager is authorised to conduct repairs up to £500 per incident without prior approval from the Client."
Property management fees are usually calculated as:
Example:
A property manager might charge 10% of monthly rental income plus £150 for each new tenant.
Most property management contracts outline how rent arrears are handled. This may include:
💡 Did You Know?
The Housing Act 1988 allows landlords to evict tenants using a Section 8 notice if rent remains unpaid for two months or more.
Yes, if the contract grants them this authority. The agreement should specify:
Tip:
Ensure this authority is limited to avoid unauthorised commitments.
The contract usually assigns dispute resolution to the property manager. Their duties might include:
Example Clause:
"The Manager shall handle all tenant disputes and seek the Client’s approval before initiating legal action."
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The contract should specify the insurance requirements for both parties, such as:
💡 Did You Know?
Insurance providers may void policies if properties are left unoccupied for extended periods without proper documentation.
The contract duration can vary but typically lasts:
Tip:
Include a notice period for termination—usually 30 to 90 days.
Yes, but the contract should outline the terms for early termination. This might include:
Example Clause:
"Either party may terminate this Agreement with 30 days' written notice. A termination fee equal to one month's management fee shall apply."
Property managers must comply with various UK regulations, such as:
💡 Did You Know?
Property managers can be fined if they fail to conduct safety inspections on time.
The contract should address the consequences of non-performance, such as:
Tip:
Regular performance reviews can help catch issues early.
The contract should explain how repair costs are handled. Common approaches include:
Example Clause:
"The Manager is authorised to approve repairs costing up to £500 without prior consent. For costs exceeding this amount, the Manager must obtain the Client's approval."
Professional property managers stay updated with property legislation and ensure:
💡 Did You Know?
Failure to protect a tenant’s deposit can result in fines of up to three times the deposit amount.
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Go Legal AI provides the tools you need to manage property contracts with ease. Our platform offers:
A property management contract is a vital document for property owners and managers, ensuring smooth, transparent, and legally compliant property management. It outlines responsibilities for tasks like rent collection, tenant communication, maintenance, and legal compliance.
Our expert lawyers have prepared this detailed DIY guide to help you create a robust property management contract that meets UK legal requirements, such as the Landlord and Tenant Act 1985 and the Housing Act 2004. Follow these steps to avoid costly mistakes and establish clear, professional agreements.
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A property management contract is a legally binding agreement between a property owner and a property manager or management company. It defines the services the manager will provide, the fees payable, and the responsibilities of each party.
This document is essential for both parties to avoid disputes, maintain legal compliance, and manage expectations effectively.
💡 Did You Know?
Property managers must register tenant deposits with a government-approved tenancy deposit scheme within 30 days of receipt, according to the Housing Act 2004.
Creating a property management contract may seem complex, but following these steps will help you cover all the essential details.
Start by clearly identifying the property owner (the client) and the property manager (the agent).
Checklist:
Example Clause:
"This Agreement is made between Johnson Property Group Ltd (the Manager), a company registered in England and Wales (Company No. 56789012), and Anna Smith (the Client), residing at 14 Maple Drive, Birmingham."
💡 Tip:
Use full legal names and cross-reference company details with Companies House.
Clearly describe the property or properties covered by the contract.
Checklist:
Example Clause:
"This Agreement covers the residential property located at 22 Oakwood Avenue, Leeds, consisting of 4 self-contained flats."
Tip:
Attach a property plan for larger or multi-unit properties.
Outline the services the property manager will provide.
Checklist:
Example Clause:
"The Manager shall perform tenant sourcing, conduct background checks, collect rental payments, and coordinate maintenance in accordance with UK property regulations."
💡 Did You Know?
Under the Tenant Fees Act 2019, property managers cannot charge tenants for services like credit checks unless explicitly permitted by law.
Detail how the property manager will be compensated.
Checklist:
Example Clause:
"The Manager shall receive a monthly fee equal to 10% of the gross rental income, payable on the first business day of each month."
Tip:
Avoid hidden fees to stay compliant with UK consumer protection laws.
Define how maintenance tasks and costs will be managed.
Checklist:
Example Clause:
"The Manager is authorised to approve repairs up to £400 without prior approval from the Client. For repairs exceeding this amount, written consent is required."
💡 Did You Know?
Landlords are responsible for structural repairs under Section 11 of the Landlord and Tenant Act 1985.
Specify the process for collecting rent and handling arrears.
Checklist:
Example Clause:
"The Manager shall collect rent monthly via direct debit and initiate arrears recovery procedures for payments more than 14 days overdue."
Tip:
Include a clause specifying when unpaid rent will trigger eviction proceedings if necessary.
Ensure the manager is responsible for legal and regulatory compliance.
Checklist:
Example Clause:
"The Manager shall ensure compliance with all relevant health and safety regulations, including the Smoke and Carbon Monoxide Alarm Regulations 2015."
💡 Did You Know?
Landlords must provide tenants with an Energy Performance Certificate (EPC) rated E or above before letting a property.
Clarify who is responsible for arranging and maintaining insurance coverage.
Checklist:
Example Clause:
"The Client shall maintain property insurance, while the Manager will hold professional indemnity insurance."
State the contract's duration and how it can be ended.
Checklist:
Example Clause:
"This Agreement shall commence on 1 January 2025 for a period of 12 months. Either party may terminate the Agreement with 30 days' written notice."
💡 Did You Know?
UK property managers must handle tenant deposits in line with The Deposit Protection Service (DPS) or another government-backed scheme.
✅ Accurate identification of the property owner and manager.
✅ Complete property details.
✅ Clear description of management services.
✅ Transparent fee structure and payment terms.
✅ Maintenance and repair responsibilities.
✅ Rent collection and arrears procedures.
✅ Legal compliance obligations.
✅ Insurance requirements.
✅ Contract duration and termination provisions.
✅ Both parties' signatures with the date.
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A landlord hires a property management company to oversee a block of 20 flats. The contract specifies monthly inspections and a 10% management fee.
Insight:
For large properties, include provisions for shared area maintenance and communal facilities.
A shopping centre owner contracts a management company to handle tenant leases and maintenance. The contract includes an additional fee for each new lease signed.
Insight:
Commercial contracts often require clauses related to business rates and service charge management.
A holiday home owner hires a management company to handle guest bookings and cleaning. The contract outlines seasonal rates and peak-season surcharges.
Insight:
Holiday lets need clear clauses regarding guest responsibilities and damage deposits.
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Property management contracts often intersect with other legal documents. Here are some related templates you may need:
Essential for landlords letting residential properties. Covers rent, deposits, and tenant obligations.
Outlines terms for routine maintenance services, including schedules, fees, and reporting requirements.
A practical tool for documenting property condition during inspections.
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We are grateful to Karim who helped our small business recover a debt within a few weeks. Very attentive even outside of normal working hours. Thank you so much!!
I recently had the pleasure of working with Karim from Go Legal, and I am beyond impressed with the exceptional service I received. From the very first consultation, it was clear that Karim is deeply knowledgeable and genuinely invested in understanding every aspect of my case. His compassion and dedication to his clients are truly unparalleled.
If you’re looking for a legal firm that combines expertise with a personal touch, look no further than Go Legal. Karim and his team are truly a standout in their field, and I wholeheartedly recommend them to anyone in need of legal assistance. Their dedication to their clients’ well-being and their unwavering pursuit of justice make them an invaluable ally in any legal matter.
Karim, is very friendly and professional. We reached out for advice and process for what we believed was a contract breach issue.
Karim demonstrated a great understanding of contract law and provided invaluable guidance every step of the way – from our initial consultation to the resolution of the matter,
They took the time to thoroughly review the details of my case, patiently answered all of my questions, and provided clear and concise explanations of my options.
Thanks to their expertise, the contract breach issue was resolved efficiently and favourably.
I wholeheartedly recommend Karim to anyone in need of legal assistance. Their professionalism, expertise, and genuine care for their clients truly set them apart. If you’re facing a contract breach or any other legal challenge, look no further.
Karim and his team are a god send. We have been dealing with a breach of contract construction dispute for several months which has caused us stress and anxiety. Karim was able to resolve it for us in a few weeks. Honestly the best lawyers I have come across. Diligent and well thought out advice.
Karim Oualnan at handled a contractual case to a successful resolution. Karim was diligent, always providing great, honest advice in which Karim always put my best interests at the forefront of his suggestions during the case. He is very reliable, trustworthy and always on hand to help. I would highly recommend Karim and look forward to working with him again in future.
Karim is a standout lawyer! His approach is very strategic and always has the best intentions of the client in mind throughout. I would highly recommend him if you’re looking for a lawyer. You’re in safe hands!
Karim is an incredibly meticulous and astute lawyer who applies a high level of skill and intelligence to his work. There is no one else that I can think of who I would go to solve a commercial dispute due to his ability of solve problems and see the commercial angle and importance of legal issues. As is evidenced by his career so far he is very comfortable with leading on complex matters and you can trust that he will produce an excellent quality of work. He is also incredibly personable, diligent and hard-working.
Karim was amazing, quick and effective just what you need. Very professional and makes it easy for you to understand everything. Always there when we need help and times of need. Worth every single penny!
I received follow up legal advice from Karim that was extremely helpful and really helped me to clarify my situation and decide on my case progression
Absolutely super service.
Very reactive and called within minutes. Offered us lots of great advice which he didn’t need to offer up for free. Would recommend
I have known Karim for several years and have nothing but praise for the way he conducts himself professionally. He is an outstanding Litigation Solicitor dedicated to achieving the best solutions for his clients. He is highly recommended
I recently worked with Karim at GoLegal and couldn’t be more pleased with the service I received. He provided exceptional advice regarding trademarks and offered valuable business insights. His expertise and thoroughness were evident in every interaction. I highly recommend Karim and GoLegal for anyone seeking professional and insightful legal guidance.
Thank you so much Karim for your Legal advice
Professional, friendly and helpful
I cannot be more grateful
Highly recommended
It was astounding how much legal knowledge and experience Karim and the team possessed. They gave good legal advice and handled complicated legal matters with ease. Their handling of delicate situations with professionalism was admirable.
Go-legal Ai has very professional and well mannered people who work hard to make sure your enquiries are dealt with as soon as possible.
Having spoken to multiple solicitors in the past few weeks I was at wit’s end, I was just as low as could be until I found Karim who gave me the confidence to keep going, his knowledge of my predicament was second to none.
Karim gave me valuable advice and was very helpful
when i was unsure weather to pursue a claim for a Construction contractual dispute.
Amazing service and experienced staff. Help and advice was top quality and especially recommend Karim as giving a level of quality service above expectations. Thank you
Amazing service! He’s thorough and ensures no detail is overlooked. With his extensive expertise, he provided me with confidence and reassurance during our legal proceedings. Karim was efficient from beginning to end, and his friendly demeanor made it an unparalleled experience!
Karim was able to offer us some great advice in consultation. Very knowledgeable and considerate. Thank you Karim.
I highly recommend Karim as a commercial solicitor. While he worked on my matter, I was extremely impressed with his expertise, professionalism, and client-focused approach. He is a trusted advisor who will provide you with the expert legal advice you need to make informed decisions.
I recently sought legal representation for a challenging litigation case and go-legal exceeded my expectations in every way. From the initial consultation, it was clear they were experienced and truly invested in getting the best outcome for me.
Karim, was particularly exceptional. His profound knowledge of the law and insightful strategies were invaluable throughout the process. He kept me informed, addressed all my concerns with patience and clarity, and consistently demonstrated genuineness.
Another massive thank you
Karim and his team have been excellent in helping our company navigate the regulatory environment in the online competitions and gaming sector. His legal expertise has been invaluable in recent months, and we’re extremely grateful for his knowledge and support.
I am writing to express my deepest gratitude for the service Ms.Zareen provided in securing the approval of my child’s Dependent visa following the initial refusal.
From the very beginning, her dedication and professionalism were evident. She took the time to thoroughly understand our situation, meticulously reviewed all the documents, and provided clear, concise guidance on the necessary steps to strengthen our case. Her expertise and strategic approach played a vital role in overturning the refusal.
I particularly appreciate how she maintained clear and constant communication, ensuring we were informed and reassured throughout the process ,showed remarkable attention in preparing our documents & displayed genuine compassion and understanding, which made a stressful situation much more manageable.
Thanks for her hard work and expertise.
We are incredibly grateful for the positive outcome.
Her efforts have had a profound impact on our lives, and we cannot thank you enough.
I will wholeheartedly recommend the services to anyone in need of immigration assistance, knowing they will be in the best hands.
I am writing to express my deepest gratitude for the service Ms.Zareen provided in securing the approval of my child’s Dependent visa following the initial refusal.
From the very beginning, her dedication and professionalism were evident. She took the time to thoroughly understand our situation, meticulously reviewed all the documents, and provided clear, concise guidance on the necessary steps to strengthen our case. Her expertise and strategic approach played a vital role in overturning the refusal.
I particularly appreciate how she maintained clear and constant communication, ensuring we were informed and reassured throughout the process ,showed remarkable attention in preparing our documents & displayed genuine compassion and understanding, which made a stressful situation much more manageable.
Thanks for her hard work and expertise.
We are incredibly grateful for the positive outcome.
Her efforts have had a profound impact on our lives, and we cannot thank you enough.
I will wholeheartedly recommend the services to anyone in need of immigration assistance, knowing they will be in the best hands.
Karim was easy to work with. Slight communication hiccup at the start, but more than made up for it with the work he did on my case. Happy with the outcome.
Karim has been so so great, he helped me throughout the whole process and even after. 100% recommended
Karim has been absolutely amazing, really helpful and responses were always really fast. I would 100% go back!
I am extremely pleased with the legal services provided by Karim and his team. Their expertise, professionalism, and prompt communication made a significant difference in my case. I also appreciated your display of empathy and understanding during a potentially stressful period for me. Your compassionate approach was truly valuable – a massive bonus for me personally. Highly recommended!
Karim provided exceptional service, demonstrating a high level of professionalism and competence. He was thorough, responsive, and always ensured that my needs were met promptly and efficiently. His expertise and attention to detail were evident in every interaction, making the entire process smooth and stress-free. I highly recommend Karim for his outstanding service and dedication to excellence.
Karim is an immaculate professional, going above and beyond to excel in his service. Couldn’t recommend highly enough!
Karim was exceptional at providing me advice to my matters. He was attentive, knowledgeable and approachable. Moreover, GoLegal is a great platform for open-sourced legal information.
The owner of Go Legal helped me with the process of filing a pre-action protocol proforma and it went smoothly. I totally recommend their professionalism and also dedication.
Karim is an amazing asset to have in your corner. Can’t recommend him and his team enough
Karim was extremely helpful and knowledgeable.
Gave me sound advice on what I needed to do.
Very helpful and informative. Takes the time to address the details
Very helpful and friendly impartial advice. Extremely thankful for the patience and time.
Karim had exceptional dedication, a positive attitude and provided very helpful guidance. He constantly went above and beyond in every aspect.
Great advice from the start, completely understanding & happy to discuss anything that your unsure about concerning
Fantastic Service given and alot of help regarding ex business partner/supplier giving harassment and defamation. A cease and desist letter was recommended to resolve the issues. Definitely recommended.
Exceptional service throughout the whole process. The information and advice provided was first class and exceeded my expectations.
I am delighted to share my heartfelt gratitude and utmost appreciation for Zareen, the immigration consultant who expertly guided us through the British naturalisation process for my wife and two kids. From start to finish, Zareen’s exceptional service and unwavering confidence made an enormous difference in our journey.
Zareen’s expertise and professionalism were evident from our very first meeting. She thoroughly understood the complexities of our case and approached each challenge with a calm and positive demeanor. Her extensive knowledge of the naturalisation process and her ability to anticipate and address potential issues reassured us every step of the way.
What truly set Zareen apart was her constant communication and feedback. She kept us informed about the progress of our application, providing timely updates and constructive insights that helped us stay on track. Her positive attitude and encouraging words were a source of comfort, especially during moments of uncertainty.
Zareen’s dedication and meticulous attention to detail ensured that all our documentation was accurate and complete. Her proactive approach in preparing and submitting our application demonstrated her commitment to achieving the best possible outcome for our family.
Thanks to Zareen’s exceptional guidance, we successfully obtained British naturalisation for my wife and two kids. Her professionalism, confidence, and unwavering support made an otherwise daunting process smooth and stress-free. I wholeheartedly recommend Zareen to anyone seeking an immigration consultant who genuinely cares about her clients and delivers outstanding results.
Thank you, Zareen, for your outstanding service and for helping our family achieve this significant milestone. We are forever grateful for your expertise and support.
Karim is knowledgeable and very attentive in all details ensuring the process goes smoothly and transparent, Also very professional and reliable, throughout the process making it easier and more prompt, I definitely recommend it 🌟🌟🌟🌟🌟🌟
Excellent to have warm personable assistance
Would highly recommend for drafting any contractual documents. Stand out firm
Called in for information regarding my dissertation on civil law and was kindly provided with very useful information.
Since I was in need of a lawyer, Karim was my go to. He was really listening to me and I felt heard. Thanks for your help
karim gave me a call back and gave me advice on what I should do. Thank you
Very helpful! Thanks Karim
He listened and provided very good advise
Great platform. Thank you Go Legal Ai
Very caring and professional company…
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