This is a legally binding Agreement between a Landlord and Real Estate Agency/Property Management company.
Without this document the Agent/Property Management Company Is not entitled to charge any fees.
This document will include:
- Inspection Report
- Details of both Parties
- Description of the premises
- Agents’ appointment
- Special instructions
- Agent authority
- Agents renumeration
- Services & fee structure
- Variation of services (charges & expenses)
- Promotional activities
- Administration of leases
- Inspections
- Repairs & maintenance
- Material Fact
- Landlord information statement
To enter into a Management Agency Agreement the Landlord will be asked to provide proof of their identity as follows:
- Driver’s License/Passport
- Power of authority
- Copy of council rates
- Copy of water rates
- Strata Levy notices (if applicable)
The Landlord is advised to research the agent to ensure the Agent is Licensed & Insured to enter into the Agreement.
The Agreement can be signed via DocuSign. Before signing the Landlord should check for any clauses that have been added or deleted and seek advice if they are unsure of any clauses in the Agreement.
Agent agrees to:
- Arrange inspections for prospective tenants
- Check references
- Sign Agreements on Landlords behalf, collect Rent & issue receipts
- Lodge & make claims for Bond as required
- Respond to any Tribunal Applications
- Serve notices for terminations, breaches, rent increases etc.
- Carry out regular inspections during tenancies
- Provide copies of documents to Landlords
- Obtain By-laws for strata titled properties
The Landlord must disclose:
- If they have prepared a contract for sale
- If there is a proposal to sell the property
- If a mortgagee has commenced proceedings for possession
- Have the premises been subject to flooding or bush fires in the last 5 years
- Are there any significant health or safety risks
- Are the premises listed on the loose fill asbestos register
- Have the premises been the scene in a serious violent crime in the last 5 years
- Have the premises been used for the manufacture or cultivation of the prohibited drugs or plants
Sometimes Landlords are comfortable in managing some parts of the process themselves e.g. rent collection.
They simply may want to use the Agents expertise in:
- Marketing the property
- Conducting open homes
- Processing applications
- Preparing lease documentation
- Preparing entry condition report
In this situation an Exclusive Leasing Agreement would need to be agreed upon & signed by both parties.
How to end the Agreement
The agreement can end in any number of ways as follows:
- The property is sold
- The Landlord moves in
- The Landlord changes Agents or decides to manage the property themselves
In point 3, there will be a “Notice Period” that applies 30, 60 or 90 days. The Agreement can also be ended by mutual consent.
The notice Period still applies even if the property becomes vacant. In this case the current Agent may seek compensation for the loss of earnings for the duration of the Notice Period. It’s best to discuss this with your Agent when giving the notice. The notice must be tendered in writing
Should you be unsure about anything contained in a Management Agency Agreement, please give Steve Arnold a call.
Steve has over 37 years’ experience in Residential Property Management.
0419 947 980 or (02) 4969 2600 | mail@arnoldproperty.com.au
