Property Management Agreement in Western Australia: Everything You Need to Know
Owning an investment property is a great way to generate passive income. However, managing it can be a daunting task, especially if you live far from the property, have a busy schedule, or lack the necessary expertise. That`s where a property management agreement comes in handy.
In Western Australia, a property management agreement is a legally binding contract between a property owner (landlord) and a property manager (agent). It outlines the terms and conditions that govern the management of the property, including rent collection, maintenance, repairs, inspections, and other aspects related to leasing and managing the property.
If you`re a landlord in Western Australia, here`s what you need to know about property management agreements.
Benefits of Property Management Agreements
The primary benefit of a property management agreement is that it reduces the workload and stress associated with managing a property. A property manager handles most of the day-to-day tasks on your behalf, allowing you to focus on other things.
Additionally, a property manager brings a wealth of experience and expertise that may be lacking in the landlord. They are knowledgeable about the local rental market, laws and regulations, and can advise you on strategies to maximize your rental income and minimize your expenses.
Finally, a property manager can act as a mediator between the landlord and tenant. They can handle disputes, negotiate lease terms, and ensure that both parties comply with their obligations.
Key Elements of a Property Management Agreement
A property management agreement in Western Australia should include the following elements:
1. Scope of services – this outlines the services that the property manager will provide, such as rent collection, maintenance, repairs, inspections, advertising, and tenant screening.
2. Duration – the agreement should specify the duration of the contract, including the start and end date.
3. Fees and charges – the agreement should specify the fees and charges that the landlord will pay to the property manager, including management fees, advertising fees, and maintenance fees.
4. Responsibilities – the agreement should outline the responsibilities of both the landlord and property manager, including their obligations related to maintenance, repairs, lease compliance, and dispute resolution.
5. Termination – the agreement should specify the circumstances under which either party can terminate the contract, such as breach of contract, non-payment of fees, or other reasons.
In summary, a property management agreement is a crucial document that protects the interests of both the landlord and property manager in Western Australia. It`s essential to read and understand the terms and conditions of the agreement before signing it. If you`re unsure about any aspect of the agreement, seek legal advice to ensure that you`re making an informed decision.