Property Management Agreement (UK)
This Property Management Agreement (the “Agreement”) is made on [Agreement Date] by and between:
[Owner Name], [Owner Type], of [Owner Address], [Owner City], [Owner County], [Owner Postcode], England (the “Property Owner” or “Owner”); and
[Agent Name], with its principal office at [Agent Address], [Agent City], [Agent County], [Agent Postcode], England (the “Managing Agent” or “Agent”).
The Property Owner and the Managing Agent are referred to collectively as the “Parties” and individually as a “Party”.
BACKGROUND
WHEREAS, the Owner is the freehold or leasehold owner of the property known as [Property Address], [Property City], [Property County], [Property Postcode], England, being [Property Type] (the “Property”);
WHEREAS, the Owner wishes to appoint the Agent to manage the Property and the letting thereof on the Owner’s behalf;
WHEREAS, the Agent holds the necessary regulatory memberships and undertakes to comply with all applicable legislation governing property management and letting agency work in England and Wales;
NOW, THEREFORE, in consideration of the mutual promises set out herein, and for other good and valuable consideration, the Parties agree as follows:
1. APPOINTMENT AND TERM
1.1 The Owner hereby appoints the Agent as its sole managing agent in respect of the Property for a [Service Level] service, and the Agent accepts the appointment on the terms and conditions set out in this Agreement.
1.2 This Agreement shall commence on [Agreement Date] and shall continue for an initial period of [Initial Term] (the “Initial Term”). Following the expiry of the Initial Term, this Agreement shall continue on a rolling basis until terminated by either Party giving the other not less than [Notice Period] written notice.
1.3 Notice of termination must be in writing and served by first-class post or email to the addresses specified in this Agreement.
2. SERVICES
2.1 The Agent shall provide the following services in respect of the Property:
- marketing the Property for rent through appropriate channels, including online portals, the Agent’s website, and any other methods agreed with the Owner;
- sourcing, vetting, and referencing prospective tenants, including obtaining credit checks, employer references, and previous landlord references;
- preparing and executing assured shorthold tenancy agreements (or such other tenancy type as may be appropriate) on the Owner’s behalf in compliance with the Housing Act 1988;
- collecting rent from the tenant and transferring it to the Owner’s nominated bank account after deduction of the Agent’s fees and any agreed expenses;
- protecting tenancy deposits in a government-approved deposit protection scheme in compliance with sections 212–215 of the Housing Act 2004 and serving the prescribed information on the tenant;
- arranging and overseeing routine maintenance, repairs, and emergency works to the Property, subject to the spending authority set out in clause 5;
- carrying out periodic inspections of the Property at the frequency specified in clause 6;
- ensuring compliance with all statutory safety requirements, including Gas Safety (Installation and Use) Regulations 1998, Electrical Safety Standards in the Private Rented Sector (England) Regulations 2020, and the provision of an Energy Performance Certificate;
- serving all notices required by law, including the government’s How to Rent guide as required by the Deregulation Act 2015;
- dealing with tenancy renewals, rent reviews, and tenancy terminations in accordance with applicable law; and
- providing regular financial statements and reports to the Owner as set out in clause 7.
2.2 The Agent shall perform the services with reasonable skill, care, and diligence in accordance with the Consumer Rights Act 2015 and the RICS UK Residential Real Estate Agency Professional Statement.
3. FEES AND CHARGES
3.1 In consideration of the services provided under this Agreement, the Owner shall pay the Agent a management fee of [Management Fee %]% of the monthly rent collected ([Fee Vat]).
3.2 The management fee shall be deducted by the Agent from the rent collected before transferring the balance to the Owner’s nominated bank account.
3.3 In accordance with the Tenant Fees Act 2019, no fees, charges, or penalties shall be imposed on or charged to the tenant in connection with the letting or management of the Property, save for those expressly permitted under Schedule 1 of that Act (namely: rent, tenancy deposit, holding deposit, changes requested by the tenant, early termination requested by the tenant, council tax, utilities, and communications services).
3.4 In compliance with section 83 of the Consumer Rights Act 2015, the Agent shall prominently display a full schedule of its fees and charges at its office premises and on its website.
4. CLIENT MONEY PROTECTION
4.1 The Agent confirms that it is a member of a government-approved client money protection scheme, namely [CMP Scheme], in compliance with the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019.
4.2 All rent, deposits, and other monies received by the Agent on behalf of the Owner or the tenant shall be held in a designated client money account, separate from the Agent’s own funds.
4.3 In the event of the Agent’s insolvency, the client money protection scheme provides compensation to the Owner for protected client funds.
5. MAINTENANCE AND REPAIRS
5.1 The Agent is authorised to instruct contractors and arrange repairs, maintenance, and other works to the Property up to a maximum cost of £[Maintenance Limit] per individual item or occurrence without obtaining the Owner’s prior written approval.
5.2 For any expenditure exceeding £[Maintenance Limit], the Agent shall obtain the Owner’s prior written approval before instructing works, except in the case of emergency works necessary to prevent danger to life, health, or serious damage to the Property, in which case the Agent may authorise expenditure without limit and shall notify the Owner as soon as reasonably practicable.
5.3 The Agent shall obtain at least two competitive quotations for any non-emergency works exceeding £500.
5.4 The Agent shall ensure that the Property meets the minimum standards prescribed by the Homes (Fitness for Human Habitation) Act 2018 and shall notify the Owner of any repairs or improvements required to maintain compliance.
6. PROPERTY INSPECTIONS
6.1 The Agent shall carry out routine inspections of the Property [Inspection Frequency] and shall provide the Owner with a written inspection report including photographs after each visit.
6.2 The Agent shall give the tenant at least 24 hours’ written notice before carrying out any inspection, in accordance with the tenant’s right to quiet enjoyment under common law and the tenancy agreement.
6.3 The inspection report shall note the general condition of the Property, any maintenance issues identified, compliance with tenancy obligations, and any recommendations for works or improvements.
7. FINANCIAL REPORTING
7.1 The Agent shall provide the Owner with a monthly financial statement showing all rent received, fees deducted, maintenance costs incurred, and the net balance transferred to the Owner.
7.2 The Agent shall provide an annual summary of income and expenditure by 31 January each year for the preceding tax year, to assist the Owner in completing their Self Assessment tax return or Corporation Tax return.
7.3 All records and accounts relating to the management of the Property shall be made available for inspection by the Owner or the Owner’s accountant upon reasonable notice.
8. INSURANCE
8.1 Buildings insurance for the Property shall be arranged and maintained by [Insurance Arranged By], and the policy shall provide adequate cover for the full reinstatement value of the Property.
8.2 The Agent shall maintain professional indemnity insurance throughout the term of this Agreement, providing cover against claims arising from the Agent’s negligence or breach of duty in the performance of its obligations.
8.3 The Agent shall hold public liability insurance of not less than £2,000,000 per claim.
9. TENANCY DEPOSIT HANDLING
9.1 Where the Agent collects a tenancy deposit from a tenant, the Agent shall protect the deposit in a government-approved tenancy deposit scheme within 30 days of receipt, in compliance with sections 212–215 of the Housing Act 2004.
9.2 The Agent shall serve the prescribed information on the tenant within 30 days of receipt of the deposit, as required by the Housing (Tenancy Deposits) (Prescribed Information) Order 2007 (as amended).
9.3 At the end of each tenancy, the Agent shall negotiate and agree any deposit deductions with the tenant in accordance with the rules of the deposit protection scheme, having regard to the check-in and check-out inventories.
10. REDRESS SCHEME AND COMPLAINTS
10.1 The Agent confirms that it is a member of [Redress Scheme], a government-approved redress scheme, in compliance with the requirements of sections 83–88 of the Enterprise and Regulatory Reform Act 2013 and The Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc.) (England) Order 2014.
10.2 Any complaint by the Owner or a tenant about the Agent’s services shall first be raised with the Agent through its internal complaints procedure. If the complaint is not resolved to the complainant’s satisfaction within 8 weeks, it may be escalated to the redress scheme.
11. TERMINATION
11.1 Either Party may terminate this Agreement after the expiry of the Initial Term by giving the other Party not less than [Notice Period] written notice.
11.2 Either Party may terminate this Agreement immediately upon written notice if the other Party commits a material breach of its obligations under this Agreement and (where the breach is capable of remedy) fails to remedy such breach within 14 days of receiving written notice specifying the breach and requiring its remedy.
11.3 Upon termination, the Agent shall:
- transfer all rent collected and client money held to the Owner within 14 days;
- hand over all keys, documents, records, correspondence, and inventory reports relating to the Property;
- transfer the tenancy deposit protection to the Owner or the Owner’s new agent, or repay the deposit to the tenant as directed by the Owner; and
- provide a final financial statement reconciling all income and expenditure to the date of termination.
12. DATA PROTECTION
12.1 Each Party shall comply with the Data Protection Act 2018 (UK GDPR) in relation to any personal data processed in connection with this Agreement.
12.2 The Agent shall process personal data of tenants and prospective tenants only as necessary for the performance of the services under this Agreement and in accordance with the Agent’s published privacy policy.
13. LIMITATION OF LIABILITY
13.1 The Agent shall not be liable for any loss or damage suffered by the Owner arising from the acts or omissions of any tenant, contractor, or third party, except to the extent caused by the Agent’s negligence or wilful default.
13.2 Nothing in this Agreement shall exclude or limit either Party’s liability for death or personal injury caused by negligence, fraud, or any other liability that cannot be excluded or limited by law.
14. THIRD PARTY RIGHTS
14.1 A person who is not a party to this Agreement shall have no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms.
15. GOVERNING LAW AND JURISDICTION
15.1 This Agreement and any dispute or claim (including non-contractual disputes or claims) arising out of or in connection with it or its subject matter or formation shall be governed by and construed in accordance with the laws of England and Wales.
15.2 Each Party irrevocably agrees that the courts of England and Wales shall have exclusive jurisdiction to settle any dispute or claim arising out of or in connection with this Agreement.
IN WITNESS WHEREOF, the Parties have executed this Property Management Agreement as of the date first written above.
THE PROPERTY OWNER
Full name: [Owner Name]
Address: [Owner Address], [Owner City], [Owner County], [Owner Postcode]
Email: [Owner Email]
THE MANAGING AGENT
Business name: [Agent Name]
Address: [Agent Address], [Agent City], [Agent County], [Agent Postcode]
Email: [Agent Email]
Property Owner
________________
Signature
Date: ________________
Managing Agent
________________
Signature
Date: ________________
What Is a Property Management Agreement (UK)?
A Property Management Agreement in the United Kingdom sets the services to be provided, the fees, the timetable, and each side's responsibilities for the engagement, and is shaped by the Law of Property Act 1925.
Property management in England and Wales is governed by a complex web of legislation that distinguishes it from property management in other jurisdictions. The Estate Agents Act 1979 provides the foundational regulatory framework for persons who carry out estate agency work, including prohibitions on certain individuals from acting as estate agents and requirements for transparency in fees and conflicts of interest. The Consumer Rights Act 2015, Part 3, imposes specific duties on letting agents and property managers to display their fees prominently at their premises and on their website, and Part 1 requires that services be performed with reasonable care and skill.
Since 1 October 2014, under the Enterprise and Regulatory Reform Act 2013, all letting agents and property management agents in England must be members of a government-approved redress scheme for the resolution of complaints. The two approved schemes are The Property Ombudsman (TPO) and the Property Redress Scheme (PRS). Failure to join an approved scheme can result in a fine of up to five thousand pounds imposed by the local authority.
Since 1 April 2019, any property agent in England that holds client money (rent, deposits, or other funds belonging to landlords or tenants) must also belong to an approved client money protection (CMP) scheme under the Client Money Protection Schemes for Property Agents Regulations 2019. This confirms that landlords and tenants are protected if the agent misappropriates funds or becomes insolvent.
The Tenant Fees Act 2019, which came into force on 1 June 2019, fundamentally changed the commercial relationship between agents, landlords, and tenants. Under this Act, letting agents may no longer charge tenants any fees in connection with the grant, renewal, or continuance of a tenancy, except for the limited permitted payments listed in Schedule 1 of the Act. All management fees, referencing costs, and administrative charges must now be borne by the landlord.
The legal framework governing the Property Management Agreement (UK) in United Kingdom draws on several key statutes and regulatory bodies. Under the Landlord and Tenant Act 1985 and Housing Act 1988, disputes may be referred to the First-tier Tribunal (Property Chamber). Section 11 of the Landlord and Tenant Act 1985 sets repair obligations. The Land Registry maintains title records under the Land Registration Act 2002. Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 governs contracts for the sale of land. The Tenant Fees Act 2019 restricts permitted payments. Parties executing a Property Management Agreement (UK) in United Kingdom should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Law of Property Act 1925 sets the foundational requirements.
When Do You Need a Property Management Agreement (UK)?
A Property Management Agreement is needed whenever a landlord in England or Wales wishes to delegate the day-to-day management of a residential rental property to a professional letting agent or property management company. Private landlords who do not live near their rental property, who own multiple rental properties, or who simply prefer not to deal directly with tenants, maintenance contractors, and regulatory compliance will benefit from engaging a professional agent.
The agreement is essential for establishing the commercial terms of the relationship, including the level of service the agent will provide. In the UK residential lettings market, three standard service levels are commonly offered: let only (where the agent finds a tenant and sets up the tenancy but the landlord manages the property day-to-day); rent collection (where the agent finds a tenant and collects the rent each month but the landlord handles maintenance and inspections); and full management (where the agent handles all aspects of the letting, including tenant finding, rent collection, maintenance, inspections, safety compliance, and tenancy renewals).
A Property Management Agreement is particularly important for landlords of Houses in Multiple Occupation (HMOs), which are subject to additional regulatory requirements under Part 2 of the Housing Act 2004, including mandatory licensing by the local authority. HMO landlords must confirm that the managing agent is fully aware of and competent to comply with the HMO licensing conditions and additional safety standards.
The agreement protects the landlord by clearly defining the agent's spending authority for maintenance and repairs, requiring the agent to hold professional indemnity insurance and public liability insurance, specifying the frequency and format of financial reporting, and establishing the procedure for termination of the relationship. It also protects the agent by confirming the scope of their authority to act on the landlord's behalf, the fees they are entitled to deduct from rent, and the landlord's obligations to maintain insurance and provide accurate information about the property.
With the implementation of the Renters' Rights Act 2025 from 1 May 2026, landlords may increasingly turn to professional agents to follow the new legal requirements, including the abolition of section 21 no-fault evictions and the conversion of all tenancies to periodic tenancies. A properly drafted Property Management Agreement confirms both parties understand their rights and responsibilities under the evolving regulatory environment.
What to Include in Your Property Management Agreement (UK)
A thorough Property Management Agreement for use in England and Wales must address several essential elements to confirm legal validity, regulatory compliance, and the protection of both parties' interests.
The appointment clause must clearly define the scope of the agent's authority and the service level agreed (let only, rent collection, or full management). It should state whether the appointment is sole or non-exclusive, and specify the property or portfolio of properties covered by the agreement.
The fees clause is critical and must comply with the transparency requirements of section 83 of the Consumer Rights Act 2015. It should state the management fee as a percentage of rent collected, whether VAT applies, any one-off tenant finding fee, and any additional charges for specific services (such as inventory preparation, tenancy renewals, or court attendance). Under the Tenant Fees Act 2019, the agreement must confirm that no fees will be charged to the tenant other than the permitted payments listed in Schedule 1 of that Act.
The client money provisions must confirm that the agent belongs to an approved CMP scheme and that all client money will be held in a separate designated client account. The agreement should specify the agent's obligation to protect tenancy deposits in a government-approved scheme (DPS, MyDeposits, or TDS) within 30 days of receipt, and to serve the prescribed information on the tenant in accordance with the Housing Act 2004.
The maintenance authority clause should specify the agent's spending limit for routine repairs without the landlord's approval, the procedure for obtaining approval for larger works, and the process for emergency repairs. The inspection clause should state the frequency of routine property inspections, the notice to be given to the tenant, and the format of the inspection report.
The regulatory compliance clause must confirm the agent's membership of an approved redress scheme under the Enterprise and Regulatory Reform Act 2013, the agent's complaints procedure, and the escalation route to the redress scheme. The agreement should also address data protection obligations under the Data Protection Act 2018, the agent's insurance requirements (professional indemnity and public liability), and the reporting obligations (monthly statements and annual summaries). The termination provisions should specify the initial term, the notice period for termination, the grounds for immediate termination, and the handover procedure upon termination.
Additional compliance elements for a Property Management Agreement (UK) used in United Kingdom include: Under the Landlord and Tenant Act 1985 and Housing Act 1988, disputes may be referred to the First-tier Tribunal (Property Chamber). Section 11 of the Landlord and Tenant Act 1985 sets repair obligations. The Land Registry maintains title records under the Land Registration Act 2002. Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 governs contracts for the sale of land. The Tenant Fees Act 2019 restricts permitted payments. Forms-legal.com provides this template as a starting point for United Kingdom-compliant documentation.
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Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Property Management Agreement (UK) (United Kingdom) [Legal document template]. Forms Legal. https://forms-legal.com/uk/real-estate/leases/property-management-agreement-uk
"Property Management Agreement (UK) (United Kingdom)." Forms Legal, 2026, https://forms-legal.com/uk/real-estate/leases/property-management-agreement-uk.
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title = {Property Management Agreement (UK) (United Kingdom)},
year = {2026},
howpublished = {\url{https://forms-legal.com/uk/real-estate/leases/property-management-agreement-uk}},
note = {Free legal document template. Based on Law of Property Act 1925}
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Frequently Asked Questions
Yes, since 1 October 2014, all property management agents and letting agents in England who carry out property management work or letting agency work must be members of a government-approved redress scheme. This requirement was introduced by sections 83 to 88 of the Enterprise and Regulatory Reform Act 2013, implemented by The Redress Schemes for Lettings Agency Work and Property Management Work (Requirement to Belong to a Scheme etc.) (England) Order 2014. The two approved schemes are The Property Ombudsman (TPO) and the Property Redress Scheme (PRS). An agent who fails to join an approved redress scheme can be fined up to five thousand pounds by the local authority. The redress scheme provides an independent complaints resolution service for landlords and tenants who are dissatisfied with the agent's services.
Client money protection (CMP) is a legal requirement for all property agents in England who hold money on behalf of landlords or tenants in connection with residential lettings. Since 1 April 2019, under the Client Money Protection Schemes for Property Agents (Requirement to Belong to a Scheme etc.) Regulations 2019, agents must belong to an approved CMP scheme. The purpose of CMP is to confirm that if an agent becomes insolvent, ceases trading, or misappropriates client funds, the landlord or tenant can be compensated for their financial loss through the protection scheme. Client money includes rent collected, tenancy deposits (before protection), maintenance funds, and any other money held on behalf of clients. Agents must keep client money in a separate designated client account, distinct from their own business accounts. Approved CMP schemes include those provided by ARLA Propertymark, NALS, and RICS. An agent who fails to join an approved CMP scheme can be fined up to thirty thousand pounds by the local authority.
No, the Tenant Fees Act 2019 (which came into force on 1 June 2019) prohibits landlords and letting agents from charging tenants any fees in connection with the grant, renewal, or continuance of a tenancy, with only a limited number of exceptions listed in Schedule 1 of the Act. The permitted payments are: rent, a tenancy deposit (capped at five weeks' rent where annual rent is under fifty thousand pounds), a holding deposit (capped at one week's rent), payments for changes to the tenancy requested by the tenant (capped at fifty pounds unless the landlord incurs higher costs), payments for early termination of the tenancy requested by the tenant, council tax, utilities, and a TV licence or other communications services. Any fee charged to a tenant that is not on this list is a prohibited payment, and the agent commits a criminal offence if they require or receive a prohibited payment. All management fees, referencing costs, inventory fees, and administration charges must therefore be charged to the landlord, not the tenant.
Under Part 1 of the Consumer Rights Act 2015, a property management agent providing services to a landlord (who is acting as a consumer) must carry out those services with reasonable care and skill. The services must also conform with any information provided by the agent about the services before the contract was entered into. If the agent fails to meet this standard, the landlord has the right to require the agent to repeat the performance of the services at no additional cost, or to obtain a price reduction. Additionally, under section 83 of the Consumer Rights Act 2015, letting agents and property managers must display a list of all fees, charges, and penalties at their offices and on their website. The fees must be stated inclusive of VAT (or the VAT amount must be separately identified). Failure to comply with the fee transparency requirements is a breach of the Consumer Rights Act 2015 and can result in enforcement action by the local authority trading standards service, including a fine of up to five thousand pounds.
The Renters' Rights Act 2025, which takes effect on 1 May 2026, will significantly change the legal framework for residential lettings in England and Wales. From that date, section 21 no-fault evictions will be abolished and all ASTs will become assured periodic tenancies. This means the agent will no longer be able to serve section 21 notices on behalf of the landlord and must instead rely on the statutory grounds for possession under section 8 of the Housing Act 1988. The agent's obligations under the Property Management Agreement will need to adapt to the new framework, including complying with new requirements such as providing tenants with the government-produced Information Sheet. However, the Property Management Agreement itself remains a valid private contract between the landlord and the agent, and its commercial terms (fees, services, termination provisions) are unaffected by the legislative changes. Agents should update their internal processes, template tenancy agreements, and management procedures to reflect the new statutory framework.
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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