Property Management Agreement (New Zealand)
EXCLUSIVE PROPERTY MANAGEMENT AGREEMENT
This Exclusive Property Management Agreement (the "Agreement") is made on [Start Date] between [Owner Name], of [Owner Address] (the "Owner"), and [Agent Name], of [Agent Address], REAA Licence No. [REAA Licence Number] (the "Agent"), in respect of the [Property Type] ([Number of Units] unit(s)) at [Property Address], [Region], New Zealand (the "Property").
This Agreement is made in accordance with the Real Estate Agents Act 2008 (REA), the Residential Tenancies Act 1986 (RTA), and the Healthy Homes Guarantee Act 2017 (HHGA). The Agent holds a current licence issued by the Real Estate Agents Authority (REAA) under the REA and is authorised to manage residential rental properties in New Zealand.
1. APPOINTMENT
The Owner hereby appoints the Agent as the Owner's exclusive property manager 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 property manager under the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012.
The Agent is authorised to act on behalf of the Owner in all matters relating to the letting, management, maintenance, and administration of the Property, including the execution of tenancy agreements under the Residential Tenancies Act 1986, the collection of rent and bond, the lodgement of bonds with Tenancy Services (MBIE), the payment of outgoings from rental proceeds, and the arrangement of maintenance and repairs, 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 15% under the Goods and Services Tax Act 1985):
(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, Healthy Homes Standards monitoring, 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 lodgement confirmation from Tenancy Services. This fee covers marketing the property, conducting open homes, processing tenancy applications, preparing the tenancy agreement, conducting the entry condition report, and lodging the bond with Tenancy Services.
(c) Advertising and Marketing: [Advertising Fee] per vacant period, to cover the cost of online listings on Trade Me Property, realestate.co.nz, and other reasonable marketing channels.
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 homes when vacant, using Trade Me Property, realestate.co.nz, and other appropriate channels, and use reasonable endeavours to secure a suitable tenant within a reasonable period;
(b) Screen all prospective tenants, including verifying identity, checking rental references, conducting credit and background checks, and assessing affordability, in compliance with the Privacy Act 2020 and the Human Rights Act 1993;
(c) Prepare and execute residential tenancy agreements under the Residential Tenancies Act 1986, ensure all mandatory disclosure obligations are met, collect bond and advance rent, and lodge the bond with Tenancy Services (MBIE) within 23 working days of receipt as required by section 19 of the RTA;
(d) Ensure the Property complies with all five Healthy Homes Standards under the Healthy Homes Guarantee Act 2017 before each new tenancy, and include a compliance statement in every tenancy agreement as required by the HHGA;
(e) Collect rent as it falls due, issue receipts, maintain rental records, and take appropriate steps to recover rent arrears in a timely manner, including issuing breach notices and, if necessary, applying to the Tenancy Tribunal for rent arrears orders under the RTA;
(f) Arrange maintenance and repairs as required, provided that no single expenditure exceeds [Maintenance Threshold] (NZD) 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 section 45 of the Residential Tenancies Act 1986;
(g) Conduct routine inspections of the Property not less than twice per year (with at least 48 hours' written notice to the tenant as required by the RTA) 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, including a year-end statement for income tax purposes.
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, including the Healthy Homes Standards, at the commencement of each tenancy; (b) maintain adequate building insurance 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, maintenance, or Healthy Homes compliance; (d) promptly notify the Agent of any change in the Owner's contact details, ownership arrangements, or any circumstances that may affect the management of the Property; and (e) not communicate directly with the tenant about matters governed by this Agreement without the Agent's prior knowledge, to avoid creating conflicting obligations.
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 Real Estate Agents Act 2008 and the Real Estate Agents Act (Audit) Regulations 2009. The trust account is operated separately from the Agent's own funds and is subject to annual audit by an independent auditor approved by the REAA. 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 in writing. The Agent shall provide the Owner with a monthly statement showing all receipts, disbursements, and balances.
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, tenancy agreements, bond receipt documents, keys and access devices, financial records, and all 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. All 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 (including the Agent's failure to maintain the required REAA licence or to comply with professional conduct obligations under the REA) where the other party has failed to remedy the breach within fourteen (14) days of receiving written notice specifying the breach in detail.
7. REAL ESTATE AGENTS ACT COMPLIANCE
The Agent acknowledges its obligations under the Real Estate Agents Act 2008 and the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012, including the duty to act in the best interests of the Owner, to maintain professional competence, to avoid conflicts of interest, and to maintain client confidentiality. The Agent must hold professional indemnity insurance as required by the REAA. The Owner may make a complaint to the Real Estate Agents Authority (REAA) if the Agent fails to comply with professional conduct obligations. Complaints can be lodged online at reaa.govt.nz.
8. 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 New Zealand under the Real Estate Agents Act 2008. 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 professional duty.
9. GENERAL PROVISIONS
This Agreement is governed by the laws of New Zealand, including the Real Estate Agents Act 2008, the Residential Tenancies Act 1986, and the Healthy Homes Guarantee Act 2017. Any dispute arising under this Agreement shall be referred to the Real Estate Agents Authority (REAA) 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.
EXECUTION
The parties have read and understood this Agreement and agree to be bound by its terms.
OWNER: [Owner Name]
Address: [Owner Address]
Email: [Owner Email]
Phone: [Owner Phone]
PROPERTY MANAGER: [Agent Name]
REAA Licence No: [REAA Licence Number]
Address: [Agent Address]
Email: [Agent Email]
Phone: [Agent Phone]
Owner
________________
Signature
Property Manager
________________
Signature
What Is a Property Management Agreement (New Zealand)?
A Property Management Agreement in New Zealand records the sale of real property from vendor to purchaser, including the price, deposit, settlement date, and conditions of sale governed by the Property Law Act 2007.
New Zealand's property management regime was introduced by the Real Estate Agents Act 2008 and has been progressively strengthened to address historically poor standards in parts of the industry. Licensed property managers must comply with the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012, which require them to act in the best interests of their clients, maintain professional competence, avoid conflicts of interest, maintain adequate professional indemnity insurance, and operate a properly maintained trust account in accordance with the Real Estate Agents Act (Audit) Regulations 2009. Property owners can verify a manager's licence status through the REAA's public register at reaa.govt.nz.
The property management agreement must also address the manager's obligations under the Residential Tenancies Act 1986 (RTA), including the requirement to confirm that tenancy agreements comply with the RTA, to lodge all bonds with Tenancy Services (MBIE) within 23 working days of receipt, to conduct property inspections with at least 48 hours' written notice to the tenant, and to take appropriate steps to recover rent arrears and enforce tenancy obligations. The manager acts as the owner's agent in all dealings with the tenant and with Tenancy Services, including any Tenancy Tribunal proceedings.
A key obligation of property managers under the Healthy Homes Guarantee Act 2017 (HHGA) and the Residential Tenancies (Healthy Homes Standards) Regulations 2019 is to confirm that managed properties comply with all five Healthy Homes Standards before a new tenant is placed, and to include a compliance statement in every tenancy agreement. The five standards cover heating, insulation, ventilation, moisture ingress and drainage, and draught stopping. Non-compliance can result in exemplary damages of up to $7,200 per standard breached, awarded by the Tenancy Tribunal, and may also trigger REAA disciplinary proceedings against the property manager.
Under New Zealand law, GST at 15% applies to property management fees under the Goods and Services Tax Act 1985. This means that quoted management fee percentages (typically 7 to 10% of gross rent) and letting fees (typically 1 to 2 weeks' rent) are subject to GST in addition. All fees and charges must be disclosed in writing in the management agreement before it is signed, as required by the REA. The management agreement should be reviewed carefully by the property owner before signing, as it establishes the scope of the manager's authority and the financial obligations of the owner for the duration of the agreement.
When Do You Need a Property Management Agreement (New Zealand)?
A Property Management Agreement is needed whenever a property owner in New Zealand wishes to appoint a licensed property management agency to manage their residential rental property on their behalf. This is particularly appropriate for owners who do not live near the property, who lack the time or expertise to manage tenancies themselves, who are overseas investors subject to the Overseas Investment Act 2005 (OIA), or who simply prefer to delegate the day-to-day management of their investment properties to professional managers.
You should use a property management agreement in the following situations: when purchasing an investment property and wanting professional help to find a tenant, prepare a tenancy agreement, and manage the ongoing relationship; when you are already a landlord but wish to transfer management responsibilities to a professional agency; when you will be based overseas for an extended period and need a local manager to handle the property in your absence; when you own multiple rental properties and cannot efficiently manage all of them directly; or when you are a first-time landlord unfamiliar with New Zealand tenancy law and the requirements of the RTA, HHGA, and the REAA regime.
A written property management agreement is strongly recommended (and in some respects legally required under the REA) before a property manager begins acting on behalf of an owner. The agreement clearly establishes the scope of the manager's authority, protects the owner by setting out exactly what services will be provided and at what cost, and provides a framework for resolving any disputes between the owner and the manager. Without a written agreement, the scope of the manager's authority is unclear, which can lead to disputes about fees, maintenance expenditure, and liability for the manager's actions.
The agreement is also essential for compliance with the Real Estate Agents Act 2008 and the REAA's professional conduct rules. The REA requires licensed property managers to document their appointment in writing and to disclose all fees and charges before providing any services. A property management agreement that does not comply with the REA's disclosure requirements may expose the manager to disciplinary action by the REAA and may allow the owner to challenge the manager's entitlement to fees.
Property owners who enter into a property management agreement should confirm that the agreement clearly addresses: the initial fixed term and the notice period for termination after the initial term; the scope of the manager's authority to spend money on maintenance and repairs without prior approval; the obligation to confirm Healthy Homes Standards compliance; the trust account arrangements for rental funds; the bond lodgement and refund process; and the dispute resolution procedure for any disagreements between the owner and the manager.
What to Include in Your Property Management Agreement (New Zealand)
A well-drafted Property Management Agreement for New Zealand must address several key elements to protect the interests of both the property owner and the property management agency, and to confirm compliance with the Real Estate Agents Act 2008, the Residential Tenancies Act 1986, and the Healthy Homes Guarantee Act 2017.
The parties and property section must correctly identify the owner and the agency by their full legal names, and must describe the property to be managed with sufficient detail — including the full address, the type of property (house, apartment, townhouse, etc.), and the number of tenancies or units. The agent's REAA licence number must be included to confirm that the manager holds a current licence under the Real Estate Agents Act 2008.
The appointment section sets out the scope of the agency's authority to act on behalf of the owner. This typically covers the right to advertise the property, conduct viewings, screen tenants, execute tenancy agreements, collect rent and bond, lodge bonds with Tenancy Services, arrange maintenance and repairs up to an approved spending limit, conduct inspections, and represent the owner in Tenancy Tribunal proceedings. The agreement should be clear about what the manager can and cannot do without the owner's prior written approval.
The fees and charges section is one of the most important parts of the agreement and must comply with the REA's disclosure requirements. All fees must be set out clearly, including the ongoing management fee (as a percentage of gross rent plus GST at 15%), the letting fee for new tenancies, the advertising and marketing fee, any lease renewal fee, and any tribunal attendance fee. The GST treatment of each fee must be clearly stated. The agreement should also specify how and when fees are deducted from rental proceeds and disbursed to the owner.
The Healthy Homes Standards section must address the manager's obligation to confirm compliance with all five standards before each new tenancy, to include a compliance statement in every tenancy agreement, and to inform the owner of any compliance issues requiring attention. The agreement should also address who is responsible for the cost of achieving compliance — typically the owner — and the process for obtaining the owner's approval for Healthy Homes-related expenditure.
The trust account section must confirm that all rental funds will be held in a properly maintained trust account under the Real Estate Agents Act 2008 and the Audit Regulations, and should specify the frequency and format of financial reporting to the owner (typically monthly statements and an annual summary). The termination section must set out the initial term, the notice period for termination, and the handover procedures to be followed upon termination. The governing law section should confirm that the agreement is governed by the laws of New Zealand. The forms-legal.com Property Management Agreement (New Zealand) provides a ready-to-use template that meets New Zealand legal requirements.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Property Management Agreement (New Zealand) (New Zealand) [Legal document template]. Forms Legal. https://forms-legal.com/new-zealand/real-estate/property/property-management-agreement-new-zealand
"Property Management Agreement (New Zealand) (New Zealand)." Forms Legal, 2026, https://forms-legal.com/new-zealand/real-estate/property/property-management-agreement-new-zealand.
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author = {{Forms Legal}},
title = {Property Management Agreement (New Zealand) (New Zealand)},
year = {2026},
howpublished = {\url{https://forms-legal.com/new-zealand/real-estate/property/property-management-agreement-new-zealand}},
note = {Free legal document template. Based on Property Law Act 2007}
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Frequently Asked Questions
Yes, under the Real Estate Agents Act 2008 (REA), property managers who manage residential rental properties on behalf of property owners in New Zealand must hold a current licence issued by the Real Estate Agents Authority (REAA 2022). The REA regime for property managers was introduced in 2009 and has been progressively strengthened to improve professional standards in the industry. Licensed property managers must comply with the Real Estate Agents Act (Professional Conduct and Client Care) Rules 2012, which require them to act in the best interests of their clients, maintain professional competence, avoid conflicts of interest, and maintain adequate professional indemnity insurance. Property owners can verify whether a property manager holds a current licence by searching the REAA's public register at reaa.govt.nz. Engaging an unlicensed property manager is unlawful and exposes the owner to significant risk, as the manager may not comply with their obligations under the RTA, the Healthy Homes Guarantee Act, and the Trust Account Rules.
Property management fees in New Zealand vary by agency, region, and the services included in the management agreement. As of 2025, typical management fees range from 7% to 10% of gross rent collected per month, plus GST at 15%. Auckland-based agencies tend to charge at the higher end of this range, while regional agencies may charge less. In addition to the ongoing management fee, most agencies charge a letting fee of 1 to 2 weeks' rent (plus GST) for each new tenancy placement, which covers the cost of advertising, tenant screening, preparing the tenancy agreement, conducting the entry condition report, and lodging the bond with Tenancy Services. Some agencies also charge a lease renewal fee of 0.5 to 1 week's rent (plus GST) for renewing or extending a fixed-term tenancy with an existing tenant. Advertising costs for vacant properties are typically charged separately at $150 to $300 per vacant period. Under the Real Estate Agents Act 2008, all fees and charges must be disclosed in writing before the management agreement is signed.
Under the Healthy Homes Guarantee Act 2017 (HHGA) and the Residential Tenancies (Healthy Homes Standards) Regulations 2019, all private rental properties in New Zealand must comply with five minimum standards: (1) the heating standard — a fixed heating device in the main living room capable of heating to at least 18 degrees Celsius; (2) the insulation standard — ceiling and underfloor insulation meeting minimum R-values for the relevant climate zone; (3) the ventilation standard — openable windows and extractor fans in kitchens and bathrooms; (4) the moisture ingress and drainage standard — efficient drainage and ground moisture barriers; and (5) the draught stopping standard — gaps wider than 3mm sealed. Since 1 July 2025, all private rental properties must comply with all five standards. Property managers have a duty to maintain compliance before placing a new tenant and to include a compliance statement in every tenancy agreement. Non-compliance can result in exemplary damages of up to $7,200 per standard breached, awarded by the Tenancy Tribunal. Property managers who fail to ensure Healthy Homes compliance may face disciplinary action by the REAA.
Under the Real Estate Agents Act 2008 and the Real Estate Agents Act (Audit) Regulations 2009, licensed property managers in New Zealand are required to maintain all rental funds received on behalf of property owners in a separate trust account. The trust account must be operated entirely separately from the agency's own funds, and the agency must not use trust account funds for its own purposes. All trust accounts are subject to mandatory annual audit by an independent auditor approved by the Real Estate Agents Authority (REAA). If a property management agency becomes insolvent or misappropriates trust funds, owners and tenants may be able to make claims against the REAA's statutory fidelity fund, which provides protection against losses caused by dishonest acts of licensees. Property owners should always verify that their property manager holds a current REAA licence and that their trust account is properly maintained before entering into a management agreement.
Yes, a property owner can terminate a property management agreement in New Zealand. Most property management agreements in New Zealand include an initial fixed term (commonly 6 to 12 months) during which early termination may require payment of a cancellation fee. After the initial term, either party can typically terminate the agreement by giving the required written notice — usually 30 to 90 days, as specified in the agreement. The owner has the right to terminate immediately (without notice) if the property manager commits a serious breach of the agreement, such as misappropriation of trust funds, gross negligence, or failure to maintain their REAA licence. Upon termination, the property manager must promptly return all tenant files, tenancy agreements, bond receipt documents, keys, access devices, and financial records to the owner, and must prepare a final disbursement statement within a reasonable time. If the property manager refuses to return documents or funds, the owner may make a complaint to the Real Estate Agents Authority (REAA) and, if necessary, apply to the District Court for an order requiring the return of the owner's property.
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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