Property Management Agreement
This Property Management Agreement (“Agreement”) is made and executed on {date}, hereinafter referred to as the “Effective Date,” by and between:
{ownerName} {ownerName67}, hereinafter referred to as the “Owner,”
and
REA1 Pty Ltd (A.B.N. 34 643 418 580), hereinafter referred to as the “Property Manager.”
The Property
The Owner is the proprietor of a certain property located at {propertyAddress}, hereinafter referred to as “The Property.”
Employment of Property Manager
The Owner hereby employs and grants the Property Manager the exclusive right to manage and rent The Property on behalf of the Owner and to provide property management services as set forth in this Agreement.
Term of Agreement
This Agreement shall be effective as of the date it is executed and shall continue, subject to the terms and conditions hereof, in full force and effect until {managingPeriod}.
This Agreement will continue in full force unless the Owner or Property Manager provides written notice 30 days prior to the intended termination date, or if the parties mutually agree to terminate the Agreement sooner.
Property Manager’s Responsibilities
The Property Manager will be responsible for:
Setting competitive market rental rates and offering discounts as necessary to maximize rental occupancy.
Entering into occupancy agreements for guest reservations.
Collecting rents, taxes, and security deposits from guests on behalf of the Owner.
Responding to reservation inquiries and handling reservations, cancellations, and disputes.
Guest management and relations.
Scheduling housekeeping and laundry services.
Conducting check-in and check-out services.
Preparing and enforcing rental agreements.
Inspecting the property at least once a month for damage or wear and tear.
Paying all fees related to credit cards, basic accounting, check-in services, and the coordination of housekeeping and maintenance.
Marketing Responsibilities
The Property Manager agrees to:
Maximize rental occupancy by promoting and advertising The Property as market conditions permit.
Owner’s Responsibilities
The Owner agrees to:
Provide a seasonal calendar of dates when the Owner expects to occupy The Property or reserve it for personal use or the use of family and friends.
Conduct a full inventory of the property, including furnishings, appliances, and electronics.
Maintain The Property in excellent condition by adhering to the following standards:Furnishings: Updated and in excellent condition.
Window Coverings: Updated and in excellent working condition.
Carpets/Flooring: No spots or visible wear.
Countertops: Free of damages.
Interior Paint: Fresh and free of nicks or scratches.
Televisions: Must be flat-screen models.
Wireless Internet: Must be provided with an approved password.
Patio Furniture: Adequate for all outdoor areas.
Kitchen: Well stocked with utensils and crockery.
Additional items: Vacuum, broom with dustpan, snow shovel, hairdryers, iron and ironing board.
The Owner agrees to bear the cost of deep cleaning, including professional carpet cleaning, after high seasons, twice a year. This shall be coordinated by the Property Manager to maintain The Property in first-class condition.
Supplies
The Property Manager is responsible for the cost of guest supplies, including shampoo, conditioner, soap, toilet paper, paper towels, and cleaning products.
Insurance
The Owner is responsible for insuring The Property, including contents and furnishings.
Repairs and Maintenance
The Property Manager will be authorized to arrange for necessary repairs and maintenance to The Property. For repairs exceeding $500, the Property Manager must obtain prior approval from the Owner, unless the repair is an emergency that risks damage to The Property or poses a safety concern. In such cases, the Property Manager will notify the Owner within 48 hours.
Termination and Final Bookings
Final Booking Facilitation:
Upon receiving a termination notice from the Owner, the Property Manager retains the right to honor any confirmed bookings made prior to receiving the notice. The Property must remain available for such bookings, even if they occur after the termination date.
Booking Confirmation:
The Property Manager will provide the Owner with a list of confirmed bookings between the termination notice and the effective termination date. The Owner agrees to honor these reservations and make The Property available.
Responsibility for Final Guests:
The Owner agrees to maintain The Property in a suitable condition for all confirmed bookings prior to termination. The Property Manager will manage guest services, including check-ins and check-outs, until the final booking is completed.
Termination Payment Obligations:
If the Owner fails to provide The Property for confirmed bookings, the Owner will be liable for 100% of the confirmed booking value of each booking.
Management Fee, Cleaning Fee and Distribution of Rental Proceeds
The Property Manager shall retain a management fee of 18% + GST of fee payout from the booking platform. Any cleaning fees or additional services not included in this Agreement will be deducted from monthly statements to the Owner. We will also deduct the cleaning fee the guest pays for each booking.
The Property Manager shall collect all rental funds attributable to The Property and provide accounting receipts. Net revenue will be issued to the Owner on a monthly basis, no later than the 20th day of the month following the departure of guests.
All rental funds and deposits will be held in a non-interest-bearing Trust Account, disbursed to the Owner at the end of each month.
Setup Fee: The Owner agrees to pay a one-time setup fee of $500 + GST, covering property evaluation, listing creation, professional photography, inventory management, and initial preparations to ensure The Property meets Airbnb hosting standards.
STRA Registration Fee: The Property Manager reserves the right to charge a one-time fee of $65 + GST to reimburse the cost of registering The Property on the STRA website.
Governing Law
This Agreement shall be governed by the laws of the State of New South Wales.
Binding Effect
This Agreement constitutes a binding obligation to the contracting parties, their successors, heirs, and representatives. Any modifications to this Agreement must be made in writing and signed by both parties.
Notices
All notices under this Agreement shall be delivered by mail, email, or facsimile to the addresses set forth below:
Owner:
Name: {ownerName}, {ownerName67}
Mailing Address: {ownerAddress}
Phone: {contactPhone}
Email: {contactEmail}
Property Manager:
Name: REA1 Pty Ltd
Mailing Address: PO Box 1139, Chatswood, NSW, 2057
Phone: 1300 00 7321
Email: info@rea1.com.au