Property Management Agreement (Malaysia)
PROPERTY MANAGEMENT AGREEMENT
PROPERTY MANAGEMENT AGREEMENT
This Property Management Agreement is made on [Agreement Date].
Parties
BETWEEN
[Owner Name] (NRIC/SSM: [Owner I C]), of [Owner Address], email [Owner Email] ("the Owner");
AND
[Manager Name] (BOVAEA Licence No.: [Manager B O V A E A No]), a property management company licensed under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242), with its registered address at [Manager Address] ("the Manager").
Property Under Management
Address: [Property Address]
Title Reference: [Title Reference]
Property Type: [Property Type]
Current Monthly Rental: [Current Monthly Rent]
Appointment and Term
1. APPOINTMENT
The Owner hereby appoints the Manager, and the Manager accepts the appointment, to manage and maintain the Property on the Owner's behalf for the duration of this Agreement, subject to the terms and conditions set out herein.
2. TERM
This Agreement shall commence on [Agreement Start Date] and continue for a period of [Agreement Duration], unless sooner terminated in accordance with Clause 7 below. Upon expiry of the initial term, this Agreement shall automatically renew for successive periods of equal duration unless either party gives written notice of non-renewal.
Management Services
3. SCOPE OF SERVICES
(a) Tenant Sourcing and Screening — [Tenant Sourcing]: Marketing the Property to prospective tenants, conducting viewings, screening tenant applications, negotiating rental terms, and executing tenancy agreements on behalf of the Owner.
(b) Rent Collection and Remittance — [Rent Collection]: Collecting monthly rental from tenants, issuing receipts, pursuing overdue rent, and remitting net proceeds to the Owner on a [Reporting Frequency] basis with a statement of account.
(c) Maintenance Coordination — [Maintenance Management]: Arranging for routine maintenance, repairs, and emergency works; obtaining quotations; instructing contractors; and supervising works up to [Maintenance Limit] per item without requiring prior Owner approval.
(d) JMB / MC Liaison — [Jmb Liaison]: Liaising with the Joint Management Body (JMB) or Management Corporation (MC); attending Annual General Meetings; and managing maintenance charge payments under the Strata Management Act 2013 (Act 757).
Management Fee
4. MANAGEMENT FEE
(a) The Owner shall pay the Manager a management fee of [Management Fee Percent] of the gross monthly rental collected from the Property.
(b) The management fee is payable monthly, to be deducted from the rental proceeds collected before remittance to the Owner.
(c) All fees are exclusive of Service Tax. The Manager shall charge Service Tax at the prevailing rate (currently 8% under the Service Tax Act 2018, Act 807) on all invoiced fees.
(d) The Manager's fees are consistent with the BOVAEA Scale of Fees for Property Managers under the Valuers, Appraisers and Estate Agents (Scale of Fees) Rules 2018.
Obligations
5. MANAGER'S OBLIGATIONS
The Manager shall: (a) act at all times in the best interests of the Owner; (b) maintain proper accounts and records of all income and expenditure; (c) provide [Reporting Frequency] financial statements to the Owner; (d) not misappropriate or commingle the Owner's funds; (e) comply with all obligations under Act 242 and BOVAEA's Code of Ethics; and (f) maintain insurance cover as instructed by the Owner.
6. OWNER'S OBLIGATIONS
The Owner shall: (a) provide the Manager with all documents necessary to manage the Property, including the document of title, fire insurance policy, and assessment receipts; (b) ensure the Property is in good repair at the commencement of any tenancy; (c) cooperate with the Manager in all matters relating to the Property; and (d) pay the management fee promptly.
Termination
7. TERMINATION
Either party may terminate this Agreement by giving [Notice Period] written notice to the other party. Upon termination, the Manager shall: (a) account for and remit all funds held on behalf of the Owner; (b) return all keys, access cards, documents, and items relating to the Property; and (c) cooperate in transitioning management to any incoming property manager.
Execution
IN WITNESS WHEREOF the parties have executed this Agreement on [Agreement Date].
Signed by the Owner:
_____________________________
[Owner Name]
NRIC/SSM: [Owner I C]
Date: [Agreement Date]
Signed for and on behalf of the Manager:
[Manager Name] (BOVAEA Licence: [Manager B O V A E A No])
_____________________________
Authorised Signatory
Name: ____________________
Designation: ____________________
Date: [Agreement Date]
Property Owner
________________
Signature
Property Manager
________________
Signature
What Is a Property Management Agreement (Malaysia)?
A Property Management Agreement in Malaysia fixes the respective duties and entitlements of the parties to the arrangement.
Property management services in Malaysia typically cover: marketing and securing tenants; collecting rent and remitting net proceeds to the owner; managing tenant relationships and complaints; coordinating maintenance and repairs; managing the property's accounts and providing periodic reports; and (for strata properties) liaising with the Joint Management Body (JMB) or Management Corporation (MC) under the Strata Management Act 2013 (SMA 2013, Act 757).
For strata properties, the Strata Management Act 2013 imposes specific obligations on property managers. Under Section 52 of the SMA 2013, a property manager appointed to manage a strata scheme must be a registered property manager under Act 242. The property manager's duty of care to the building owners is akin to a fiduciary duty — misappropriation of maintenance funds is a criminal offence under Part VIII of the SMA 2013.
Property management fees in Malaysia are regulated by BOVAEA's Scale of Fees for Property Managers, published under the Valuers, Appraisers and Estate Agents (Scale of Fees) Rules 2018. For residential property management, the fee is typically 7% to 10% of gross rental collected. For commercial and industrial property management, fees are negotiated within the BOVAEA scale.
The legal framework governing the Property Management Agreement (Malaysia) in Malaysia draws on several key statutes and regulatory bodies. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Parties executing a Property Management Agreement (Malaysia) in Malaysia should confirm the document reflects current law, including any amendments enacted since the original drafting date. The National Land Code 1965 (Act 56) sets the foundational requirements.
When Do You Need a Property Management Agreement (Malaysia)?
A Property Management Agreement is needed in Malaysia whenever a property owner appoints a professional property manager to manage their property.
A Property Management Agreement is required when a property investor who owns one or more residential properties in Malaysia — condominiums, service apartments, or terraced houses — wishes to have the properties professionally managed by a BOVAEA-registered property manager, particularly if the owner is residing overseas or does not have the time to manage tenant relationships directly.
A Property Management Agreement is needed when a commercial property owner appoints a licensed manager to manage a portfolio of shop lots, office suites, or industrial units, including collecting rent, handling maintenance, and dealing with tenant disputes.
A Property Management Agreement is required when the Management Corporation (MC) or Joint Management Body (JMB) of a strata development under the Strata Management Act 2013 appoints a licensed property management company to manage the common property and facilities of a condominium or stratified commercial building.
A Property Management Agreement is needed when a REIT (Real Estate Investment Trust) listed on Bursa Malaysia appoints a property manager to manage the trust's property portfolio under the trust deed and Securities Commission Malaysia's guidelines for REITs.
A Property Management Agreement is required when the estate administrator or executor of a deceased person's estate needs to appoint a manager to maintain and generate income from estate property pending distribution to beneficiaries under the Probate and Administration Act 1959 (Act 97).
Parties in Malaysia should prepare a Property Management Agreement (Malaysia) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Property Management Agreement (Malaysia)
A complete Malaysia Property Management Agreement must contain the following essential elements.
Parties: Full legal name, address, and NRIC or SSM registration number of the property owner (principal) and the property manager. The manager's BOVAEA registration number and licence number must be stated to confirm their authorisation to practice under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981.
Property description: Full address, title reference, and description of the property to be managed. For strata properties, the parcel number, accessory parcels, and development name.
Scope of management services: A detailed list of services the manager is engaged to provide — including tenant sourcing, lease negotiation, rent collection and remittance, maintenance coordination, utilities management, property inspection, and JMB/MC liaison for strata properties.
Management fee: The fee payable to the manager, expressed as a percentage of gross rental collected or a fixed monthly fee in RM, together with the frequency of payment, the manner of remittance, and any additional reimbursable expenses (such as repair costs above a specified threshold). BOVAEA's Scale of Fees under the 2018 Rules sets the recommended scale.
Authority to act: The scope of the manager's authority — including the rental rate range within which the manager may execute tenancy agreements without prior approval, the maintenance expenditure limit the manager may authorise without owner consent, and any restrictions on the manager's authority.
Reporting obligations: The frequency and format of financial reports — typically monthly statements showing rental collected, expenses incurred, and net proceeds remitted — and the manager's obligation to maintain proper accounts and records subject to audit by the owner.
Duration and termination: The term of the agreement (typically 1 to 2 years), the notice period required for termination (typically 1 to 3 months), and the conditions for early termination by either party.
Additional compliance elements for a Property Management Agreement (Malaysia) used in Malaysia include: Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). The Employment Act 1955 (Act 265) and the Department of Labour govern employment matters. The Personal Data Protection Act 2010 (Act 709) and the Personal Data Protection Department protect personal data. The Inland Revenue Board of Malaysia (LHDN) administers tax obligations. The Industrial Court adjudicates employment disputes under the Industrial Relations Act 1967 (Act 177). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Property Management Agreement (Malaysia) (Malaysia) [Legal document template]. Forms Legal. https://forms-legal.com/malaysia/real-estate/property/property-management-agreement-malaysia
"Property Management Agreement (Malaysia) (Malaysia)." Forms Legal, 2026, https://forms-legal.com/malaysia/real-estate/property/property-management-agreement-malaysia.
@misc{formslegal-property-management-agreement-malaysia,
author = {{Forms Legal}},
title = {Property Management Agreement (Malaysia) (Malaysia)},
year = {2026},
howpublished = {\url{https://forms-legal.com/malaysia/real-estate/property/property-management-agreement-malaysia}},
note = {Free legal document template. Based on National Land Code 1965 (Act 56)}
}
Frequently Asked Questions
Yes. Property managers in Malaysia must be registered with and hold a valid licence from the Board of Valuers, Appraisers, Estate Agents and Property Managers (BOVAEA) under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242). An individual who acts as a property manager — collecting rent, managing tenants, and maintaining property on behalf of owners — without a BOVAEA licence commits an offence under Section 29 of Act 242 and is liable to a fine and imprisonment. Property management firms must be registered as companies with the SSM under the Companies Act 2016 and also registered with BOVAEA. The Board maintains a public register of licensed property managers on its website. When engaging a property manager, owners should verify the manager's BOVAEA registration number, licence currency, and any disciplinary proceedings before entering into a Property Management Agreement.
The standard property management fee in Malaysia is regulated by BOVAEA's Scale of Fees for Property Managers, published under the Valuers, Appraisers and Estate Agents (Scale of Fees) Rules 2018. For residential property management (individual units such as condominiums, apartments, and houses), the standard fee is 7% to 10% of gross rental collected per month. For commercial property management (shop lots, office buildings, industrial units), the fee is typically 5% to 8% of gross rental collected, depending on the complexity of the management services. For strata building management (managing common property for a JMB or MC under the Strata Management Act 2013), the fee is based on a scale tied to the total maintenance charge budget. Property management fees in Malaysia are typically subject to an additional 8% Service Tax under the Service Tax Act 2018 (Act 807) on the fee amount, as property management services are a taxable service. The fee is negotiable between the parties within the BOVAEA scale.
A property manager appointed to manage a stratified development in Malaysia under the Strata Management Act 2013 (SMA 2013, Act 757) has significant statutory obligations. Under Section 52 of the SMA 2013, the property manager must be a registered property manager under the Valuers, Appraisers, Estate Agents and Property Managers Act 1981 (Act 242). The manager's duties include: maintaining the common property of the development in good repair; collecting maintenance charges (service charge and sinking fund) from parcel owners; disbursing maintenance funds only for approved purposes under the management fund; keeping proper accounts subject to annual audit; preparing and presenting annual budgets at the Annual General Meeting (AGM); maintaining insurance over the common property; and complying with the by-laws of the Management Corporation (MC). Misappropriation of maintenance funds by a property manager is an offence under Section 125 of the SMA 2013, punishable by a fine not exceeding RM 250,000 and imprisonment for up to 3 years.
A Property Management Agreement (Malaysia) does not legally require a lawyer in Malaysia, and individuals and businesses may draft and execute the document independently. The National Land Code 1965 (Act 56) does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified Malaysia lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Federal Court of Malaysia has jurisdiction over disputes arising from this type of document, and Companies Commission of Malaysia (SSM) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Property Management Agreement (Malaysia) does not legally require a lawyer in Malaysia, though legal advice is recommended. Under Malaysian law, the Contracts Act 1950 (Act 136) governs agreements. The Companies Commission of Malaysia (SSM) regulates corporate documents under the Companies Act 2016 (Act 777). The Employment Act 1955 and Industrial Court handle employment disputes. The Personal Data Protection Act 2010 (Act 709) imposes data protection obligations. Forms-legal.com provides this template as a starting point — always review with a qualified Malaysian lawyer for significant transactions. Under Malaysia law, National Land Code 1965 (Act 56), parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Malaysian law, the Contracts Act 1950 (Act 136) governs contractual obligations. The Companies Act 2016 (Act 777) regulates corporate entities through the Companies Commission of Malaysia (SSM). Forms-legal.com provides this template as a starting point for Malaysia-compliant documentation.
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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