Property Management Agreement (Australia)
EXCLUSIVE MANAGEMENT AGENCY AGREEMENT
This Exclusive Management Agency Agreement (the "Agreement") is made on [Start Date] between [Owner Name], of [Owner Address] (the "Owner"), and [Agent Name], of [Agent Address], Real Estate Licence No. [Agent Licence Number] (the "Agent"), in respect of the [Property Type] at [Property Address], [State] comprising [Number of Units] tenancy/unit(s) (the "Property").
This Agreement is made in accordance with the Property and Stock Agents Act 2002 (NSW) and the Property and Stock Agents Regulation 2022 (NSW), the Estate Agents Act 1980 (VIC) and the Estate Agents (General, Accounts and Audit) Regulations 2018 (VIC), or the equivalent property agent licensing legislation applicable in [State].
1. APPOINTMENT
The Owner hereby appoints the Agent as the Owner's exclusive managing agent for the Property for the initial term of [Term Length] commencing on [Start Date], subject to the terms of this Agreement. The Agent accepts this appointment and agrees to act in accordance with its obligations as a licensed real estate agent in [State].
The Agent is authorised to act as the Owner's agent in all matters relating to the letting, management, maintenance, and administration of the Property, including the execution of tenancy agreements, the collection of rent and bond, the payment of outgoings from rental proceeds, and the arrangement of maintenance and repairs, all subject to the limitations set out in this Agreement.
2. MANAGEMENT FEES AND CHARGES
In consideration for the management services provided under this Agreement, the Owner shall pay the Agent the following fees (all amounts are exclusive of GST, which is charged in addition at the current rate of 10%):
(a) Management Fee: [Management Fee %] of gross rent collected each month. The management fee shall be deducted from rental proceeds before disbursement to the Owner. This fee covers routine day-to-day management of the Property including rent collection, tenant liaison, routine inspections, maintenance coordination, and monthly financial statements.
(b) Letting Fee: [Letting Fee] for each new tenancy placement, payable upon execution of the tenancy agreement and receipt of the first rental payment and bond. This fee covers marketing the property, conducting open inspections, processing tenancy applications, and preparing the tenancy agreement.
(c) Advertising and Marketing: [Advertising Fee] per vacant period, to cover the cost of online listings on platforms including realestate.com.au and Domain, signage, and other reasonable marketing expenses.
3. AGENT'S DUTIES
The Agent shall perform the following property management services in connection with the Property:
(a) Market the Property and conduct open inspections when vacant, and use reasonable endeavours to secure a suitable tenant within a reasonable period;
(b) Screen all prospective tenants, including verifying identity, checking rental references, and assessing affordability in accordance with the applicable tenancy legislation and anti-discrimination laws;
(c) Prepare and execute residential tenancy agreements on behalf of the Owner, ensure all mandatory disclosure obligations are met, and collect the bond and advance rent as required by applicable state legislation;
(d) Lodge all bonds with the relevant state bond authority (NSW Fair Trading, the Residential Tenancies Bond Authority in Victoria, or the Residential Tenancies Authority in Queensland) within the period prescribed by the applicable Residential Tenancies Act;
(e) Collect rent as it falls due and take appropriate steps to recover rent arrears in a timely manner, including issuing breach notices and, if necessary, applying to the relevant tribunal for rent arrears orders;
(f) Arrange maintenance and repairs as required, provided that no single expenditure exceeds [Maintenance Threshold] without the Owner's prior written approval, except in the case of urgent or emergency repairs necessary to prevent damage to the property or risk to tenant safety, as required under the applicable Residential Tenancies Act;
(g) Conduct routine inspections of the Property not less than twice per year and provide the Owner with a written inspection report after each inspection;
(h) Maintain accurate financial records and provide the Owner with a monthly itemised rental statement and an annual summary of income and expenditure.
4. OWNER'S OBLIGATIONS
The Owner shall: (a) ensure that the Property is fit for habitation and complies with all applicable building, health, safety, and planning requirements at the commencement of each tenancy; (b) maintain adequate building and landlord's insurance on the Property throughout the term of this Agreement; (c) promptly consider and respond to any recommendations made by the Agent regarding repairs or maintenance; (d) promptly notify the Agent of any change in the Owner's contact details or any circumstances that may affect the management of the Property; and (e) not deal directly with any tenant in respect of any matter under the tenancy during the term of this Agreement without the Agent's prior knowledge.
5. TRUST ACCOUNT AND DISBURSEMENTS
The Agent shall maintain all rental funds received in a trust account operated in accordance with the requirements of the applicable property agents legislation and the corresponding Regulations. The Agent shall disburse rental proceeds to the Owner after deducting the management fee, any approved maintenance expenses, and any other authorised charges, on a monthly basis unless otherwise agreed. The Agent shall provide the Owner with a monthly statement showing all receipts and disbursements.
6. TERMINATION
This Agreement may be terminated after the initial term of [Term Length] by either party giving not less than [Termination Notice Days] days' written notice to the other party. Upon termination, the Agent shall promptly deliver to the Owner all tenant files, keys, financial records, and other property of the Owner held by the Agent. The Agent shall prepare a final disbursement statement within fourteen (14) days of the termination date. Fees and charges accrued up to the date of termination shall remain payable by the Owner.
Either party may terminate this Agreement immediately for serious breach where the other party has failed to remedy the breach within fourteen (14) days of receiving written notice specifying the breach.
7. LIABILITY AND INDEMNITY
The Agent shall perform all management services with the standard of care, diligence, and competence expected of a licensed property manager in [State]. The Owner shall indemnify and hold the Agent harmless from all claims, losses, and liabilities arising from any act or omission by the Owner in breach of this Agreement or in breach of any obligation to the tenant or any third party, except to the extent that such claim, loss, or liability arises from the Agent's own negligence or breach of duty.
8. GENERAL PROVISIONS
This Agreement is governed by the laws of [State]. Any dispute arising under this Agreement shall be referred to the applicable state property services regulatory authority or resolved by mediation before commencing legal proceedings. This Agreement constitutes the entire agreement between the Owner and the Agent with respect to the management of the Property and may not be amended except by a written instrument signed by both parties.
IN WITNESS WHEREOF the parties have executed this Agreement on the date first written above.
OWNER: [Owner Name]
Address: [Owner Address]
Email: [Owner Email] Phone: [Owner Phone]
MANAGING AGENT: [Agent Name]
Licence No: [Agent Licence Number]
Address: [Agent Address]
Email: [Agent Email] Phone: [Agent Phone]
Owner
________________
Signature
Date: ________________
Managing Agent
________________
Signature
Date: ________________
What Is a Property Management Agreement (Australia)?
A Property Management Agreement is the legal contract between a rental property owner and a licensed real estate agent or property management company that appoints the agent as the owner's exclusive managing agent for the property in Australia. The agreement defines the scope of the agent's authority, the services the agent will provide, the fees and charges payable, the agent's obligations regarding trust accounting and bond lodgement, and the conditions under which either party may terminate the arrangement.
In Australia, property management is a heavily regulated activity. All real estate agents and property managers must be licenced under the applicable state or territory legislation before they can lawfully manage rental properties on behalf of others. The key pieces of legislation are the Property and Stock Agents Act 2002 (NSW), the Estate Agents Act 1980 (VIC), the Property Occupations Act 2014 (QLD), the Real Estate and Business Agents Act 1978 (WA), the Land Agents Act 1994 (SA), and the Property Agents Act 2016 (TAS). Each of these Acts sets out the licensing requirements, the mandatory trust accounting obligations, the permissible fee structures, and the disclosure requirements that apply to property management agreements.
A property management agreement creates an agency relationship between the owner and the agent. The owner (as principal) authorises the agent to act on their behalf in managing the property, and the agent owes the owner fiduciary duties of loyalty, care, and disclosure. The agreement should clearly define the scope of the agent's authority — for example, the maximum expenditure the agent is authorised to incur on maintenance without the owner's approval — to avoid disputes about whether a particular action was within the agent's authority.
The Property and Stock Agents Act 2002 (NSW) prescribes mandatory terms for residential property management agreements in New South Wales, including requirements about the form and content of the agreement, the disclosure of fees, and the right of the owner to terminate the agreement in certain circumstances. Agents must provide the owner with a copy of the signed agreement and must not charge fees that are not disclosed in the agreement.
The legal framework governing the Property Management Agreement (Australia) in Australia draws on several key statutes and regulatory bodies. Under state and territory residential tenancies legislation, including the Residential Tenancies Act 1997 (Vic), Residential Tenancies Act 2010 (NSW), and equivalent Acts in other jurisdictions, tenancy tribunals (NCAT in NSW, VCAT in Victoria) adjudicate disputes. The Real Property Act 1900 (NSW) and Transfer of Land Act 1958 (Vic) govern property registration through state land registries. Section 52 of the Australian Consumer Law (Schedule 2, Competition and Consumer Act 2010) prohibits misleading conduct in property transactions. The Foreign Acquisitions and Takeovers Act 1975 (Cth) requires FIRB approval for foreign purchasers. Parties executing a Property Management Agreement (Australia) in Australia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Real Property Act 1900 (NSW) sets the foundational requirements.
When Do You Need a Property Management Agreement (Australia)?
A Property Management Agreement is needed whenever a residential property owner wants to engage a licensed real estate agent or property management company to manage their investment property on their behalf. This includes situations where the owner lives interstate or overseas and cannot personally manage the tenancy, where the owner does not have the time or expertise to manage tenant relations, maintenance, and compliance obligations directly, or where the property is part of a portfolio of investment properties that the owner manages through a professional agency.
The agreement is the document that creates the legal authority for the agent to act on the owner's behalf — without a signed management agreement, the agent has no authority to collect rent, enter into tenancy agreements, spend money on maintenance, or take any other action in respect of the property. All actions taken by the agent under the agreement are legally attributed to the owner as if the owner had taken those actions directly.
A property management agreement is particularly important in Australian residential tenancy law because the agent's authority is closely linked to the owner's obligations under the applicable Residential Tenancies Act. For example, the agent's obligation to maintain the property in a reasonable state of repair, to lodge bonds with the relevant authority within the prescribed period, and to issue compliant tenancy agreements all flow from the management agreement and the underlying legislative framework.
Both owners and agents should carefully review the management agreement before signing. Owners should pay particular attention to the fee structure (including all additional charges beyond the management fee), the maintenance authorisation limit, the inspection frequency, and the termination provisions. Agents should confirm that the agreement accurately reflects the services they will provide and the fee entitlements they will have, in compliance with the applicable state legislation.
What to Include in Your Property Management Agreement (Australia)
A well-drafted Australian Property Management Agreement must address several key elements to protect both the owner and the agent.
The appointment and exclusivity clause confirms that the owner appoints the agent as the exclusive managing agent for the property. Exclusivity means that the owner cannot appoint another agent to manage the same property during the term of the agreement without breaching the contract. The agent's exclusivity should be limited to the specific property or properties identified in the agreement.
The fee schedule must set out all fees and charges with clarity, including the ongoing management fee (as a percentage of collected rent plus GST), the letting fee, the advertising and marketing fee, the lease renewal fee (if any), and any other charges such as tribunal attendance fees or annual statement fees. Under the Property and Stock Agents Act 2002 (NSW) and equivalent state legislation, agents are required to disclose all fees in the management agreement and cannot charge fees that are not disclosed.
The maintenance authorisation limit is the threshold above which the agent must obtain the owner's written approval before incurring expenditure on maintenance or repairs. A typical authorisation limit is $500 to $1,000 for a single maintenance item. The agreement should provide that this limit does not apply to urgent or emergency repairs, where the agent is authorised to act immediately to prevent danger to tenants or serious damage to the property, as required by the applicable Residential Tenancies Act.
The trust accounting and disbursement clause confirms that the agent will hold all rental funds in a statutory trust account, will deduct authorised fees and expenses, and will disburse the net rental proceeds to the owner on a monthly basis accompanied by a detailed statement. The agent's trust accounting obligations are prescribed by the applicable property agents legislation and are not a matter of contractual discretion.
The bond management clause describes the agent's obligations to collect the bond at the commencement of each tenancy, to lodge the bond with the relevant state bond authority within the prescribed period, and to manage any bond claims at the end of the tenancy. The agent must obtain either the tenant's consent or a tribunal order before applying any part of the bond to unpaid rent or damage.
The inspection clause specifies the frequency of routine inspections, which in most states must not occur more frequently than the maximum permitted under the applicable Residential Tenancies Act (typically four times per year). The agent must provide the owner with a written condition report after each inspection.
The termination clause specifies the conditions under which either party may end the management agreement. After the initial fixed term, the agreement typically continues on a month-to-month basis until terminated by either party giving the specified notice period (commonly 30 to 90 days). Both parties should understand their rights and obligations on termination, including the return of all files, keys, trust funds, and documentation. The forms-legal.com Property Management Agreement (Australia) template covers the mandatory elements under Real Property Act 1900 (NSW).
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author = {{Forms Legal}},
title = {Property Management Agreement (Australia) (Australia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/australia/real-estate/property/property-management-agreement-australia}},
note = {Free legal document template. Based on Real Property Act 1900 (NSW)}
}Also available for these jurisdictions:
Frequently Asked Questions
Yes. In all Australian states and territories, a person who carries on the business of a real estate agent or property manager must hold a current real estate agent's licence issued by the relevant state licensing authority. In New South Wales, the applicable legislation is the Property and Stock Agents Act 2002 (NSW), and licensing is administered by NSW Fair Trading. In Victoria, the Estate Agents Act 1980 (VIC) governs licensing, administered by Consumer Affairs Victoria. In Queensland, the Property Occupations Act 2014 (QLD) applies. Unlicensed property management is a criminal offence in all states. Property owners should always verify their agent's licence number using the publicly available online registers maintained by each state's licensing authority before signing a management agreement.
The management fee is the ongoing fee charged by the property manager for day-to-day management of the rental property. It is typically expressed as a percentage of gross rent collected each month, with GST charged in addition at 10%. In most Australian capital cities, management fees range from approximately 7% to 12% of collected rent, with fees generally higher in regional areas where there is less competition among agencies. The management fee typically covers: rent collection and arrears management, liaison with tenants, coordination of routine maintenance and repairs, routine inspections (usually two to four per year), monthly rental statements, and preparation and lodgement of tenancy-related notices. Separate fees are usually charged for tenant placement (the letting fee), lease renewal, advertising, and tribunal representation.
Under the property agent licensing legislation in all Australian states, a licensed real estate agent who holds money on behalf of clients — including rental income, bonds (in states where the agent temporarily holds the bond before lodgement), and maintenance funds — must maintain that money in a dedicated statutory trust account held with an approved financial institution. The agent must keep all trust money completely separate from the agency's own funds. In New South Wales, the relevant requirements are set out in the Property and Stock Agents Act 2002 (NSW) and the Regulations. In Victoria, the Estate Agents (General, Accounts and Audit) Regulations 2018 (VIC) prescribe trust accounting requirements. Trust accounts in most states are subject to annual external audit. An agent who misuses or misappropriates trust money may face criminal prosecution, loss of licence, and civil liability to the client.
The management fee is the ongoing periodic fee (usually monthly) charged for day-to-day management of the property, typically calculated as a percentage of rent collected. The letting fee (also known as a tenanting fee or leasing commission) is a one-off fee charged each time a new tenant is placed in the property. The letting fee covers the cost of marketing the property, conducting open inspections, processing and verifying tenancy applications, preparing the tenancy agreement, collecting the first rental payment and bond, and lodging the bond with the relevant state authority. The letting fee is typically equivalent to one to two weeks' rent plus GST. Some agents also charge a lease renewal fee (typically half a week's to one week's rent plus GST) when an existing tenancy is renewed for a further fixed term.
Yes. A licensed real estate agent or property manager is generally authorised to represent the landlord as the landlord's agent at tenancy tribunal hearings. In New South Wales, the relevant tribunal is the NSW Civil and Administrative Tribunal (NCAT). In Victoria, it is the Victorian Civil and Administrative Tribunal (VCAT). In Queensland, it is the Queensland Civil and Administrative Tribunal (QCAT). Under the Property and Stock Agents Act 2002 (NSW) and equivalent legislation, an agent acting as the owner's representative at tribunal is exercising an agency function and does not require a separate legal practitioner's licence. The authority to appear at tribunal should be expressly included in the management agreement, along with the fee charged per attendance. The agent's authority is limited to the tenancy matters covered by the agreement — complex litigation would require the engagement of a solicitor.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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