Tenancy Agency Agreement

A tenancy agency agreement, also known as a property management agreement, is a legal contract between a property owner and a property management company. This type of agreement outlines the responsibilities and rights of both parties in managing a rental property.

If you are a property owner who is considering hiring a property management company, it is important to understand the key components of a tenancy agency agreement. In this article, we will discuss the ten essential elements that should be included in this type of agreement.

1. Parties involved

The first section of a tenancy agency agreement should clearly identify the parties involved – the property owner and the property management company. It should also include their legal names and addresses.

2. Property description

The agreement should include a detailed description of the property being managed. This should include the location, type of property, number of units, and any other relevant details.

3. Term of the agreement

The term of the agreement refers to the length of time that the property management company will be managing the property. It should clearly state the start and end date of the agreement.

4. Management fees

The management fees section should outline the fees that the property owner will pay to the management company for their services. This can include a percentage of the monthly rent, flat fees, or a combination of both.

5. Services provided

The agreement should clearly outline the services that the property management company will provide. This can include rent collection, maintenance and repairs, tenant screening, marketing, and property inspections.

6. Owner responsibilities

The agreement should also detail the responsibilities of the property owner. This can include providing necessary funds to cover expenses, maintaining adequate insurance coverage, and complying with all laws and regulations related to the property.

7. Tenant relations

This section will outline how the property management company will handle tenant relations. This can include responding to tenant requests, enforcing lease agreements, and handling tenant complaints.

8. Financial reporting

The property management company should provide the property owner with regular financial reporting. This can include monthly or quarterly reports detailing income and expenses related to the property.

9. Termination of the agreement

The agreement should outline the circumstances under which either party may terminate the agreement. This can include breach of contract, non-payment of fees, or other issues.

10. Governing law

Finally, the agreement should specify the governing law under which the contract will be interpreted and enforced.

In conclusion, a tenancy agency agreement is an essential tool for property owners who want to ensure that their rental property is effectively managed by a professional property management company. By including these ten key elements, property owners can protect their interests and ensure a successful working relationship with their property management company.

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